Grievance Function in IR: Grievance

Grievance means any type of dissatisfaction or discontentment’s arising out of factors related
to an employee’s job which he thinks are unfair. A grievance arises when an employee feels
that something has happened or is happening to him which he thinks is unfair, unjust or
inequitable.

According to Dale Yoder “A grievance is a written complaint filed by an employee and

claiming unfair treatment.”

Keith Davis defines it as “any real or imagined feeling of personal injustice which an
employee has concerning his employment relationship.”

According to Jucius “a grievance is any discontent or dissatisfaction, whether expressed or

not, whether valid or not arising out of anything connected with the company which an
employee thinks believes or feels to be unfair, unjust or inequitable.”

Different types of grievances

Type # 1. Visible Grievances or Hidden Grievances:

When the grievances are clearly visible to the others is called visible grievances. But it is not
necessary that all times these are visible then these are called hidden one. It is called hidden
grievances.

Type # 2. Real or Imaginary:

The grievances may be real or imaginary also. These may be called genuine or imaginary too.
When a grievance is due to a valid reason and related to the terms of employment only. The
management or concerned party responsible for redressing of grievance is called real,
genuine or factual grievance. Second, imaginary grievance is that when it is there not for any
valid reason. The management is not at fault. It is called imaginary only.

Type # 3. Expressed or Implied:

There may be expressed or implied grievances. When an employee felt the grievance and
expressed or reports to the management in written or oral forms, is called express because it
has been made clear. When it is not made clear but from the situation it can be inferred or
judged that there is a grievance. That type of grievance is called implied grievance.

Type # 4. Oral or Written:

According to the way of expression, the grievances can be oral or written. When orally it is
reported or expressed then it is called oral grievance. An employee makes a written complaint
then it becomes written grievance. Entirely according to their expression the grievances are
classified.

Type # 5. Disguised Grievances:

Sometime the grievances take place but the employees do not know the reasons of
grievances. The causes of grievances are unknown. These are called disguised grievances.
This type of grievances take place due to mental pressure or frustration due to other factors
and not related to work.

Type # 6. Individual or Group Grievances:

The grievances may be related to individual employee or a group of employees. In group we

may include team, department, etc. When an individual is affected then it is called individual
grievance. When a group is affected due to the grievances and reported then it becomes a
group grievance. Other factors for formation of types are not considered other than party
affected.

Type # 7. Union Grievances:

The union presents the grievances to the management on behalf of member employees then it
becomes union grievance. It is presented in the interest of everyone in the union and not for
individual employee. When the employees felt that the terms of employment are violated then
union takes the initiative in reporting of the grievances. The union presents the case for
collective agreements in this case.

Type # 8. Policy Grievances:

When a grievance is related to policy of the company relating to terms of employment is

called policy grievance. The terms of employment may include appointment, training,
compensation, promotion and transfer, rewards and incentives, bonus, allowances, etc. When
these are violated by the management and reported by employees’ union then it becomes a
policy grievance.

In an organization, a grievance may arise due to several factors such as:

1. Violation of management’s responsibility such as poor working conditions

2. Violation of company’s rules and regulations

3. Violation of labor laws

4. Violation of natural rules of justice such as unfair treatment in promotion, etc.

Various sources of grievance may be categorized under three heads: (i) management policies,
(ii) working conditions, and (iii) personal factors

1.Grievance resulting from management policies include:

 Wage rates

 Leave policy

 Overtime

 Lack of career planning

 Role conflicts

 Lack of regard for collective agreement

 Disparity between skill of worker and job responsibility

2. Grievance resulting from working conditions include:

 Poor safety and bad physical conditions

 Unavailability of tools and proper machinery

 Negative approach to discipline

 Unrealistic targets

3. Grievance resulting from inter-personal factors include

 Poor relationships with team members

 Autocratic leadership style of superiors

 Poor relations with seniors

 Conflicts with peers and colleagues

It is necessary to distinguish a complaint from grievance. A complaint is an indication of

employee dissatisfaction that has not been submitted in written. On the other hand, a
grievance is a complaint that has been put in writing and made formal. Grievances are
symptoms of conflicts in industry. Therefore, management should be concerned with both
complaints and grievances, because both may be important indicators of potential problems
within the workforce. Without a grievance procedure, management may be unable to respond
to employee concerns since managers are unaware of them.

Therefore, a formal grievance procedure is a valuable communication tool for the

organization.

Grievance Procedure:

Grievance procedure is a Step by step process an employee must follow to get his or her
complaint addressed satisfactorily. In this process, the formal (written) complaint moves from
one level of authority (of the firm and the union) to the next higher level. Grievance
procedure is a formal communication between an employee and the management designed
for the settlement of a grievance. The grievance procedures differ from organization to
organization.

1. Open door policy

2. Step-ladder policy

Open door policy: Under this policy, the aggrieved employee is free to meet the top
executives of the organization and get his grievances redressed. Such a policy works well
only in small organizations. However, in bigger organizations, top management executives
are usually busy with other concerned matters of the company. Moreover, it is believed that
open door policy is suitable for executives; operational employees may feel shy to go to top
management.

Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step
procedure for getting his grievance redressed. In this procedure, whenever an employee is
confronted with a grievance, he presents his problem to his immediate supervisor. If the
employee is not satisfied with superior’s decision, then he discusses his grievance with the
departmental head. The departmental head discusses the problem with joint grievance
committees to find a solution. However, if the committee also fails to redress the grievance,
then it may be referred to chief executive. If the chief executive also fails to redress the
grievance, then such a grievance is referred to voluntary arbitration where the award of
arbitrator is binding on both the parties.

Methods of Understanding employee grievances

Exit interview Interviewing employees who have decided to quit the company could reveal
a lot about what is not visible to the naked eye. These are very useful as the company can
come to know what problems are been faced by the employees.

Opinion surveys A survey could be undertaken to find out how employees feel about the
company about the work, their colleagues.

Gripe boxes Gripe boxes may be kept at prominent locations in the factory for. lodging
anonymous complaints pertaining to any aspect relating to work. Since the person lodging the
complaint need not reveal his identity he can reveal his feelings of injustice or discontent
fairly and without any fear of victimization.

Open door policy This is a kind of walk in interview or meeting with the manager when the
employees can express his feelings about any work related grievance. The manager can cross
check the details of the complaint through various means at his disposal.

Observation In this grievance identification technique grievances are not heard from the
aggrieved employee directly, rather the manager or the immediate supervisor constantly
tracks the behavior of the employees working under him. If he comes across an employee
who exhibits an indifferent attitude, experiences difficulties in getting along with people,
mishandles or damages tools, equipment or materials due to carelessness or he/she is quite
often absent then they infer such an employee has some serious grievances which needs
immediate action and remedy.

How to handle an employee grievance?

1. Establish whether the grievance needs to be resolved formally or informally.

2. Choose an appropriate manager to deal with the grievance.

3. Carry out a full investigation and gather all relevant evidence, sending it to the employee in

advance of the meeting.

4. Arrange the grievance meeting, inviting the employee and reminding them of their
statutory

right to be accompanied.

5. Make sure accurate notes are taken throughout by a person who is not involved in the case.

6. Give the employee the opportunity to explain the details of their grievance and what they

would like the outcome to be.

7. Adjourn the meeting consider the evidence before making a decision.

8. Inform the employee in writing of the decision, explaining how and why the decision was

reached.

9. Notify the employee of their right to appeal against the outcome of the grievance
procedure.

GRIEVANCE PROCEDURE IN INDIAN INDUSTRY

The 15th session of Indian Labor Conference held in 1957 emphasized the need of an
established grievance procedure for the country which would be acceptable to unions as well
as to management. In the 16th session of Indian Labor Conference, a model for grievance
procedure was drawn up. This model helps in creation of grievance machinery.

According to it, workers’ representatives are to be elected for a department or their union is to
nominate them. Management has to specify the persons in each department who are to be
approached first and the departmental heads who are supposed to be approached in the
second step. The Model Grievance Procedure specifies the details of all the steps that are to
be followed while redressing grievances. These steps are:

STEP 1 The aggrieved employee shall convey his or her grievance verbally to the officer
designated by the management to deal with grievance, the officer will have to reply to the
complaints within 48 hours of its presentation to him or her.

STEP 2 If the grievant is not satisfied with the answer or does not receive the answer within
48 hours he shall then present the grievance to the departmental head nominated for this
purpose .The head must give his or her reply within three days of the presentation of the
grievance.

STEP 3: If the aggrieved employee is still not satisfied with the decision of the departmental
head or does not receive any reply within the stipulated period he can approach the grievance
committee for the settlement of his grievance. The grievance committee has to give its
recommendation in seven days and report it to management .The management must
communicate the decision to the grievant within three days.

STEP 4: If the employee is still not satisfied with the decision made by the grievance
committee or does not receive the decision from it, he can make an appeal to the management
for a revision of the decision taken. The management can take a week for appeal to be
considered and the revised decision is to be informed to the grievant .

STEP 5: If the employee is still not satisfied with the decision of the management, the
grievance may be referred to voluntary arbitration within a week after the decision taken by
the management in stage4.

STEP 6: The decision of the arbitrator is final and binding on both the parties ie the
management and the union.
 Discipline
Meaning of Discipline

Discipline is working, co-operating, and behaving in a normal and orderly way, as any
responsible person would expect an employee to do.

According to Weber’s Dictionary: It is the training that corrects, moulds, strengthens, or

perfects individual behavior. It is control gained by enforcing obedience. It is punishment or
chastisement.

According to Bremblett: Discipline does not mean a strict and technical observance of rigid
rules and regulations.
 It simply means working, co-operating and behaving in a normal and orderly way, as any
responsible person would expect an employee to do. In simple terms, discipline is
employee self-control which prompts him to willingly cooperate with the organizational
standards, rules, objectives, etc.

Aspects of Discipline

There are two aspects of discipline:

1. Positive Discipline

2. Negative Discipline

1.Positive Discipline:

• Employees believe in and support discipline and adhere to the rules, regulations, and
desired standards of behavior.

• Discipline takes the form of positive support and reinforcement for approved actions. • Its
aim is to help the individual in moulding his behavior and developing him in a corrective and
supportive manner.

• It is called positive approach or constructive discipline or self-discipline. Positive discipline

takes place whenever the organizational climate is marked by aspects such as

i. payment of adequate remuneration and incentives.

ii. Appropriate avenues for career advancement.

iii. Appreciation of poor performance and reinforcement of approved personnel behaviour or

exercise self-control.

2.Negative Discipline:

• Employees sometimes do not believe in and support discipline.

• They do not adhere to rules, regulations, and desired standard of behaviour.

• Disciplinary programme forces and constraint the employees to obey orders and function in
accordance with set rules and regulations through warnings, penalties, and other forms of
punishment.
• This approach to discipline is called negative approach, corrective approach, or punitive
approach.

• This approach is also called autocratic approach as the subordinates are given no role in
formulating the rules and they are not told why they are punished.

• Negative or enforced discipline connotes that personnel are forced to observe rules and
regulations on account of fear or reprimand, fine, demotion or transfer.

• But these are helpful in extracting just minimum standard of work from the employees
since they work on account of fear they've got.

In fact, punishment, penalties, emotions and transfers provide or establish a climate which
demotivate its employees.

Objectives of Discipline

The objectives of discipline are:

1. To obtain a willing acceptance of the rules and regulations or procedures of an organization

so that organizational goals may be attained.

2. To develop among the employee a spirit of tolerance and a desire to make adjustments.

3. To increase the working efficiency or morale of the employees so that their productivity is
stepped up and the cost of production brought down and the quality of production im proved.

4. To give direction or responsibility.

5. To create an atmosphere of respect for the human personality or human relations.

Principles for Maintenance of Discipline

The principles of discipline are as under:

1. All the rules should be formed in cooperation or collaboration with the representatives of
employees.

2. All the rules should be appraised at frequent or regular intervals to ensure that they are and
continue to be, appropriate, sensible and useful.

3. Rules should be uniformly enforced if they are to be effective. They must be applied
without exception.
4. Penalties for any violation of any rule should be clearly stated in advance.

5. Extreme caution should be exercised to ensure that infringements are not encouraged.

6. If violations of a particular rule are fairly frequent; the circumstances surrounding them
should be carefully investigated and studied in order to discover the cause or causes of such
violation.

7. Define or precise provisions for appeal or review of all disciplinary actions should be
expressly mentioned in the employee’s handbook.

Significance of Employee Discipline

From the Point of View of an Individual:

(i) Discipline provides self-safety to an individual.

(ii) It enhances an individual’s progress.

(iii) An individual needs it for his own satisfaction

From the Point of View of a Work Group:

(i) Discipline ensures better teamwork and cohesive.

(ii) A disciplined atmosphere is the key to the progress of the group.

(iii) Discipline ensures higher productivity.

(iv) Discipline enhances morale and motivation of employees.

From the Point of View of an Organization:

(i) Discipline ensures higher productivity and quality.

(ii) Discipline helps an organization in attaining maximum profit.

(iii) It is essential better all-round benefits.

(iv) It helps in keeping a check on wastage and costs.

(v) It helps in developing a sense of belonging.

Types of Employee Discipline

There are mainly 5 types of Employee Discipline.

• Positive Discipline,

• Negative Discipline,

• Self-Discipline and Control,

• Progressive Discipline and

• The Red-Hot Stove Rule

1. Positive Discipline:

Positive discipline in a business is an atmosphere of mutual trust and common purpose in

which all employees understand the company rules as well as the objectives and do
everything possible to support them.

Discipline takes the form of positive support and reinforcement for approved actions and its
aim is to help the individual in moulding his behavior and developing him in a corrective and
supportive manner. Once the standards and rules are known by all employees, discipline can
be enforced equitably and fairly.

Guidelines for establishing a climate of positive discipline.

i. There must be rules and standards, which are communicated clearly and administered
fairly.

ii. Rules and standards must be reasonable and should be communicated so that they are
known and understood by all employees. An employee manual can help with communicating
rules.

iii. While a rule or a standard is in force, employees are expected to adhere to it.

iv. Even though rules exist, people should know that if a personal problem or a unique
situation

makes the rule exceptionally harsh, the rule may be modified, or an exception be granted.

v. There should no favorites and privileges be granted only when they can also be granted to
other employees in similar circumstances.

vi. Employees must be aware that they can and should voice dissatisfaction with any rules or

standards they consider unreasonable as well as with working conditions they feel hazardous,
discomforting or burdensome.

vii. Employees should understand the consequences of breaking a rule without permission.

viii. Employees should be consulted when rules are set.

2. Negative Discipline:

Negative discipline is interpreted as a sort of check or restraint on the freedom of a person.

Discipline is used to refer to the act of imposing penalties for wrong behaviour. If employees
fail to observe rules, they are punished. The fear of punishment puts the employee back on
track.

3. Self-Discipline and Control:

Behavioural scientists view discipline as self-control to meet organizational objectives.

Megginson clarified the term thus- “By self-discipline we mean the training that corrects
moulds and strengthens. It refers to one’s efforts at self-control for the purpose of adjusting
oneself to certain needs and demands.

This form of discipline is raised on two psychological principles:

• First, punishment seldom produces the desired results. Often, it produces undesirable
results.

• Second, a self-respecting person tends to be a better worker than one who is not”.

4. Progressive Discipline:

The concept of progressive discipline states that penalties must be appropriate to the
violation.

If inappropriate behavior is minor in nature and has not previously occurred, an oral warning

may be sufficient. If the violation requires a written warning, it must be done according to a

procedure. After written warnings, if the conduct of the employee is still not along desired
lines,

serious punitive steps could be initiated.

5. The Red-Hot Stove Rule:

Without the continual support of the subordinates, no manager can get things done. But
disciplinary action against a delinquent employee is painful and generates resentment on his

part. Hence, a question arises as to how to impose discipline without generating resentment?

This is possible through what Douglas McGregor called the “Red Hot Stove Rule”, which
draws an analogy between touching a hot stove and undergoing discipline.

Consequences of disciplinary action:

Disciplinary action should have the following consequences:

(i) Burns Immediately: If disciplinary action is to be taken, it must occur immediately so the
individual will understand the reason for it. With the passage of time, people have the
tendency to convince themselves that they are not at fault.

(ii) Provides Warning: It is very important to provide advance warning that punishment will
follow unacceptable behaviour. As you move closer to hot stove, you are warned by its heat
that you will be burned if you touch it.

(iii) Gives Consistent Punishment: Disciplinary action should also be consistent in that
everyone who performs the same act will be punished accordingly. As with a hot stove, each
person who touches it is burned the same way.

(iv) Burns Impersonally: Disciplinary action should be impersonal. There are no favourites
when this approach is followed.

Common Issues Related to Employee Discipline

The common issues related to employee discipline are:

I. Compliance issues:

1. Providing wrong information or hiding factual personal data during recruitment

2. Non-compliance with the terms of employment contract, for example an employee takes
up

additional job while still working in your organization.

3. Violation of company policies, rules & regulations.

4. Non-adherence to workplace safety instructions

5. Indulgence in theft and fraud in the company

6. Absconding without resignation

7. False medical, travel and expense claims

II. Behavioral issues:

1. Exhibiting misconduct towards manager, leadership and co-workers

2. Reporting late to work or team meetings

3. Frequent leave without intimation and approvals

4. Indulging in political activities and anti-social activities

5. Not completing work assignments on time or repeatedly not meeting goals

6. Refusal to attend training programs

7. Not marking attendance

8. Wasting time on social media and other web-sites that are not related to work

9. Bullying other colleagues

Disciplinary Procedure

Before starting the process of discipline, it is essential to hold a preliminary inquiry to know
if a prima facie case of indiscipline and misconduct exist.

After this, the following steps should be followed:

1. Issue of charge sheet

2. Consideration of Explanation

3. Suspension pending Enquiry

4. Holding of Enquiry

5. Order of punishment

I. Issue of Charge Sheet:

Once the prima facie case of misconduct is established, the management should proceed to
issue a charge sheet to the employee. Charge sheet is merely a notice of the charge and
provides the employee an opportunity to explain his conduct.

Therefore, charge sheet is generally known as a show cause notice. In the charge sheet, each
charge should be clearly specified. There should be a separate charge for each allegation and
charge should not relate to any matter, which has already been decided upon.

II. Consideration of Explanation:

On getting the answer for the charge sheet served, the explanation furnished should be
considered and if it is satisfactory, no disciplinary action needs to be taken. On the contrary
when the management is not satisfied with the employee’s explanation, it can proceed with
full-fledged enquiry.

III. Suspension pending Enquiry: Passing of suspension order is of an administrative nature

and suspension is not a punishment. Its purpose is to only forbid the delinquent to work in the
office and it is in the exclusive domain of the employer to revoke the suspension order. In
case the charge is grave that is serious, a suspension order may be served on the employee
along with the charge sheet.

According to the Industrial Employment (Standing Order) Act, 1946: The suspended worker
is to be paid a subsistence allowance equal to one-half of his wages for the first ninety days of
suspension and three-fourths of wages for the remaining period of suspension if the delay in
the completion of disciplinary proceedings is not due to the worker’s conduct.

IV. Holding of Enquiry: An enquiry officer should be appointed to hold the enquiry and a
notice to this effect should be given to the concerned worker. Principle of natural justice must
be followed. The worker should not be denied the chance of explaining himself. The enquiry
officer should give sufficient notice to the worker so that he may prepare to represent his case
and make submission in his defence. The enquiry officer should proceed in a proper manner
and examine witnesses. Fair opportunity should be given to the worker to cross-examine the
management witnesses.

Principle of Natural Justice

• Tell the person what he has done.

• Hear Him
• Give Him a Chance to defend himself.

• On the conclusion of the enquiry, the enquiry officer should record his findings and the
reasons thereof.

• He should refrain from recommending punishment and leave it to the decision of the
appropriate authority.

V. Order of Punishment: Disciplinary action can be taken when the misconduct of the
employee is proved. While deciding the nature of disciplinary action, the employee’s
previous record, precedents, effects of the action on other employees, etc, have to be
considered. When the employee feels that the enquiry conducted was not proper and the
action taken unjustified, he must be given a chance to make appeal.

Causes of Indiscipline

The important causes of indiscipline are analyzed under three heads:

1. Organizational Factors

2. Individual Factors

3. Environmental Factors.

I. Organizational Factors:

• Where the organization, while hiring the employees, fail to assess the traits of individuals
like attitude, obedience, tolerance and inquisitiveness, it may end up hiring employees who
challenge any decision made by the management. This may breed indiscipline.

• Lack of code of conduct for employees has potential to disorient them thereby sowing seeds
of indiscipline.

• Where an employee hired for a job for which he has neither aptitude nor attitude, he is sure
to develop ill-feelings. He may find the job uninteresting and do everything to evade
responsibility.

• Ineffective leadership characterized by authoritarianism and incompetency, and distrustful

relations with employees fuel indiscipline among the employees.

• Indiscriminate use of penal provisions triggers reactionary group indiscipline.

• Favoritism and nepotism practiced by supervisors vitiate discipline.

• Divisive policies pursued by management and instituting unofficial spy network spoils the
work atmosphere thereby engendering indiscipline.

• Biased performance evaluation on considerations of caste, creed, colour, gender, religion

and region promotes ill-feeling and a sense of injustice among employees which culminate in
indiscipline.

• Absence of grievance redressal mechanism frustrates employees thereby breeding

indiscipline among them.

II. Individual Factors: Individuals with non-conformist values tend to engage in indiscipline
behavior. Every individual perceives reward and punishment differently and react to it
accordingly. When the reward is not commensurate with his expectation, he may feel
frustrated and indulge in indiscipline.

Individuals differ in work ethics. Those with high ethical values tend to be committed and
involved in the jobs while those with low ethical values show alienation to their jobs and
exhibit negative behavior

. III.Environmental Factors: Since an organization is also one of the members of the society,
discipline observed by the society manifests in organizations. Indiscipline prevailing in
family, educational institutions, political system, religious institutions, break- down of social
control mechanism, etc., casts its ugly shadow on the organizational climate.

Disciplinary Action levels

There are various disciplinary actions as per level of indiscipline and generally they follow a
typical sequence of steps as per seriousness – verbal warning, written warning, suspension,
and dismissal.

1. Written verbal warning:

The mildest form of discipline is the written verbal warning. It is a temporary record of a
reprimand which is then placed in the manager’s file of the employee. This warning remains
in the hands of the manager.

It is not forwarded to the personnel department for inclusion in the employee’s personnel file.
The written verbal reprimand is best achieved if completed in a private and informal
environment. The manager should begin by clearly informing the em-ployee of the rule that
has been violated and the problem that this infraction has caused.
If the written verbal warning is effective, further disciplinary action can be avoided. If the
employee fails to improve, the managers need to consider more severe action.

2. Written warning:

The second step in the progressive discipline process is the written warning. In effect, it is the
first formal stage of the disciplinary procedure. This is so because the written warning
becomes part of the employee’s official personnel file.

This is achieved by not only giving the warning to the employee but sending a copy to the
personnel department to be inserted in the employee’s permanent record.

3. Suspension:

A suspension or lay-off would be the next disciplinary step, usually taken if the prior steps
have been implemented without the desired outcome. If the infraction is of a serious nature,
suspension is ordered without any prior verbal or written warning.

A suspension may be for one day or several weeks; disciplinary lay offs in excess of a month
are rare. A short lay-off, without pay, is potentially a rude awakening to problem-employees.
It may convince them that management is serious and force them into accepting
responsibility for following the organisation’s rules.

4. Demotion:

If suspension has not been effective and management wants to avoid dismissing the problem

employee, demotion may be an alternative. Demotion is a disciplinary action whereby an

individual is sent back to a lower position in the company.

However, it tends to demoralize not only the employee but the co-workers (peers) as well.
Moreover, it is not a temporary action. It is a constant punishment to the demoted employee
and hence has broad motivational implication.

5. Paycut:

Another alternative, also rarely applied in practice, is cutting the problem-employee’s pay.
The pay cut usually has a demoralizing effect on the employee and is suggested as a rational
action by management if the only other alternative is dismissal.

6. Dismissal:
Management’s ultimate disciplinary punishment is dismissing the problem employee.
Dismissal should be used only for the most serious offences. Yet it may be the only feasible
alternative when an employee’s behaviour is so bad as to seriously interfere with a
departments or the whole organisation’s operation.

Domestic Enquiry: Meaning

Domestic enquiry is conducted for offences against the establishment for misconduct
punishable under the Standing Orders/Companies' Rules and Regulations, etc., applicable to
the establishment where the worker is employed.

Domestic enquiry is conducted in terms of what is called `Natural Justice". The enquiry
officer while examining the evidence and pronouncing on the guilt is not supposed to award
penalty which is left to a superior officer who is the employer or the appointing authority.

Domestic enquiry is not a legal requirement under the Industrial Disputes Act or other
substantive laws such as the Factories Act, Mines Act, etc. but has been provided under the
standing orders to the framed under the Industrial Employment (Standing Orders) Act.

Dismissal or any major notice against an employee without holding a fair and just domestic
enquiry amounts to violation of principles of natural justice and is frowned upon by the Labor

Courts/Industrial Tribunals; so much so, dismissal without holding regular enquiry is deemed
an illegality.

Principles of Domestic Enquiry

The principles of domestic enquiry are as under:

1. Rule of Natural Justice must be observed.

2. The delinquent is entitled to a just hearing.

3. He can call for his own evidence.

4. Cross-examine any witness called by the prosecution.

5. Where rules are laid down, the procedure of such rules must be followed.

6. Disclose to the employee concerned, the documents of records and offer him an
opportunity to deal with it.

7. Do not examine any witness in the absence of the employee.

8. The enquiry officer is at liberty to disallow any evidence after recording the reasons in
writing.

Process of Domestic Enquiry

There are mainly four steps in the process of domestic enquiry.

1. Preliminary Enquiry

2. Framing of Charges

3. Services of Charge-sheet

4. Reply to the Charge-sheet.

1. Preliminary Enquiry:

After a report about the misconduct committed by the delinquent\workman is received by the

employer, he is required to decide whether a prima facie case exists for a formal enquiry.

For this purpose, he may hold a preliminary enquiry of an informal nature. Such an enquiry is
purely informal and does not call for the observance of any specific rules of natural justice
and can be held ex-parte i.e., the workman need not be questioned or otherwise asked to take
part in it. Statements taken in the preliminary enquiry cannot be used as evidence in the
formal inquiry. In fact the preliminary enquiry is intended only for the disciplinary authority
to satisfy himself whether departmental action is called for or not. Hence, there may not be
any formal report about the preliminary enquiry and no reference is to be made to it in the
subsequent enquiry.

2. Framing of Charges:

This is easily the most important and perhaps, the most crucial stage in the entire
proceedings,

because the success of any disciplinary case depends primarily on the soundness of the
charges. The charges are, in turn, based on imputations so that if the imputations or
allegations are based on solid evidence, the chances of successful conclusion of the domestic
enquiry are gratefully enhanced.

The chargesheet should contain the following, in clear, simple and cogent language.
1. The alleged facts and circumstances (with date, time, place and words, if relevant) in
specific terms with surrounding accentuating factors (if any alleged), which if proved would
constitute "misconduct".

2. Previous record (punishment including) if relevant to the facts and circumstances alleged
or if they aggravate or accentuate the charge or if the same is going to be considered by
punishing authority at the time of considering punishment (previous record for period beyond
certain time becomes meaningless if there is specific provision in standing orders or in the
circumstances of the case).

3. Charges levelled against in specific terms (to be quoted from the Standing Orders, if
applicable, otherwise in language borrowed from industrial law), of which the charge sheeted
workman would be guilty, if the facts and circumstances alleged against him be proved.

4. Proposed punishment that may ensure if guilt be established.

3. Services of Charge-sheet:

Once chargesheet is prepared, it is required to be served on the workman concerned and proof
of its service obtained. If the workman is present, service may be affected by personal
service, obtaining acknowledgment of its receipt either on a copy of the chargesheet or in a
dak book or on a separate piece of paper.

At the time of service of chargesheet it is advisable (necessary) to have at least two witnesses,
so that in case of refusal to accept chargesheet, the fact is recorded by the person serving the
chargesheet and signature of witnesses obtained.

4.Reply to the Charge-sheet:

After the chargesheet is received by the workman he may:

i) ask for further details or for inspection of documents referred to in chargesheet

ii) accept the accusations, plead guilty of the -charges and tender apologies iii) may ask for
time to submit explanation

iv) may explain away the accusation and deny the charges

v) may not submit any explanation

Industrial Employment (Standing Orders) Act,

An Act require employers in industrial establishments formally to define Conditions of

employment under them:

Whereas it is expedient to require employers in industrial establishments to define with

sufficient precision the conditions of employment under them and to make the said conditions
known to workmen employed by them.

It is hereby enacted as follow:

1. Short title, Extent and Application:

(1) This act may be called the Industrial Employment (Standing Orders) Act, 1946.

(2) It extends to the whole of India.

(3) It applies to every industrial establishment wherein one hundred or more workmen are
employed, or were employed on any day of the preceding twelve months:

intention so to do, by notification in the Official Gazette, apply the provisions of this Act to
any

industrial establishment employing such number of number of persons less than one hundred
as may be specified in the notification.

(4) Nothing in this Act shall apply to:

(i) Any industry to which the provisions of Chapter VII of the Bombay Industrial Relations
Act, 1946, apply; or

(ii) Any industrial establishment to which the provisions of the Madhya Pradesh Industrial

Employment (Standing Orders) Act, 1961 apply:

Provided that notwithstanding anything contained in the Madhya Pradesh Industrial

Employment (Standing Orders) Act, 1961, the provisions of this Act shall apply to all
industrial establishments under the control of the Central Government.

Object of the Act:

That the object of the Act is to have uniform Standing Orders providing for the matters
enumerated in the Schedule to the Act, that it was not intended that there should be different
conditions of service for those who are employed before and those employed after the
Standing Orders came into force and finally, once the Standing Orders come into the force,
they bind all those presently in the employment of the concerned establishment as well as
those who are appointed thereafter.

2. Interpretation:

In this Act, unless there is anything repugnant in the subject or context:

(a)"appellate authority" means an authority appointed by the appropriate Government by

notification in the Official Gazette to exercise in such area as may be specified in the
notification the functions of an appellate authority under this Act:

[Provided that in relation to an appeal pending before an Industrial Court or other authority
immediately before the commencement of the Industrial Employment (Standing Orders)
Amendment Act, 1963, that Court or authority shall be deemed to be the appellate authority]

b) "appropriate Government" means in respect of industrial establishments under the control

of the Central Government or a [Railway administration] or in a major Port, mine or oil field,
the Central Government, and in all other in all other cases the State Government]

[Provided that where question arises as to whether any industrial establishment is under the
control of the Central industrial establishment is under the control of the Central Government
that Government may, either on a reference made to it by the employer or the workman or a
trade union or other representative body of the workmen, or on its own motion and after
giving the parties an opportunity of being heard, decide the question and such decision shall
be final and binding on the parties]

(c) "Certifying Officer" means a Labour Commissioner or a Regional Labour Notes

Commissioner, and includes any other officer appointed by the appropriate Government, by
notification in the Official Gazette, to perform all or any of the functions of a Certifying
Officer under this Act:

(d) "employer" means the owner of an industrial establishment to which this Act for the time
being applies, and includes: (i) In a factory, any person named under [clause (f) of sub-section
(1) of Section 7 of the Factories Act, 1948], as manager of the factory;
(ii) In any industrial establishment under the control of any department of any Government in
India, the authority appointed by such Government in this behalf, or where no authority is so
appointed, the head of the department;

(iii) In any other industrial establishment, any person responsible to the owner for the
supervision and control of the industrial establishment;

(e) "industrial establishment" means

(i) An industrial establishment as defined in clause (ii) of Section 2 of the Payment of Wages
Act, 1936, or

(ii) A factory as defined in clause (m) of Section 2 of the Factories Act, 1948, or

(iii) A railway as defined in clause (4) of Section 2 of the Indian Railway Act, 1890, or

(iv) The establishment of a person who, for the purpose of fulfilling a contract with the owner
of any industrial establishment, employs workmen;

(f) "Prescribed' means prescribed by rules made by the appropriate Government under this
Act;

(g) "Standing orders" means rules relating to matters set out in the Schedule;

(h) "Trade union" means a trade union for the time being registered under the Indian Trade
Union Act, 1926;

(i) "wages" and "workman" have the meanings respectively assigned to them in clauses (rr)
and (s) of Section 2 of the Industrial Disputes Act, 1947 (14 of 1947).

3. Submission of draft standing orders

(1) Within six months from the date on which this Act becomes applicable to an industrial

establishment, the employer shall submit to the Certifying Officer five copies of the draft
standing orders proposed by him for adoption in this industrial establishment.

(2) Provision shall be made in such draft for every matter set out in the Schedule which may
be applicable to the industrial establishment, and where Model standing orders have been
prescribed shall be, so far as is practicable, in conformity with such model.

(3) The draft standing orders submitting under this section shall be accompanied by a
statement
giving prescribed particulars of the workmen employed in the industrial establishment
including the name of the trade union, if any, to which they belong

(4) Subject to such conditions as may be prescribed, a group of employers in similar

industrial

establishments may submit a joint draft of standing orders under this section.

4. Conditions for certification of standing orders

Standing orders shall be certifiable under this Act if–

(a) Provision is made therein for every matter set out in the Schedule, which is applicable to
the industrial establishment, and

(b) The standing orders are otherwise in conformity with the provisions of this Act; and it
[shall be the function] of the Certifying Officer or appellate authority to adjudicate upon the
fairness or reasonableness of the provisions of any standing orders.

5. Certification of standing orders:

(1) On receipt of the draft under Section3, the Certifying Officer shall forward a copy thereof
to the trade union, if any, of the workmen, or where there is no such trade union, if any, of the
workmen or where there is no trade union, to the workmen in such manner as may be
prescribed, together with a notice in the prescribed form requiring objections, if any, which
the workmen may desire to make to the draft standing orders to be submitted to him within
fifteen days from the receipt of the notice.

(2) After giving the employer and the trade union or such other representatives of the
workmen as may be prescribed an opportunity of being heard, the Certifying Officer shall
decide whether or not any modification of or addition to the draft submitted by the employer
is necessary to render the draft standing orders certifiable under this Act and shall make an
order in writing accordingly.

(3) The Certifying Officer shall thereupon certify the draft standing orders, after making any

modifications there in which his order under sub-section (2) may require and shall within
seven days thereafter send copies of the certified standing orders authenticated in the
prescribed manner and of his order under sub-section (2) to the employer and to the trade
union or other prescribed representatives of the workmen.
6. Appeals

1) [Any employer, workmen, trade union or other prescribed representatives of the workmen]

aggrieved by the order of the Certifying Officer under sub-section (2) of Section 5 may,
within [thirty days] from the date on which copies are sent under subsection (3) of that
section, appeal to the appellate authority, and the appellate authority, whose decision shall be
final, shall by order in writing confirm the standing orders either in the form certified by the
Certifying Officer or after amending the said standing orders by making such modifications
thereof or additions there to as it thinks necessary to render the standing orders certifiable
under this Act.

(2) The appellate authority shall, within seven days of its order under sub-section (1) send
copies thereof to the Certifying Officer, to the employer and to the trade union or other
prescribed representatives of the workmen, accompanied, unless it has confirmed without
amendment the standing orders as certified by the Certifying Officer, by copies of the
standing orders a certified by it and authenticated in the prescribed manner.

7. Date of operation of standing orders

Standing orders shall, unless an appeal is preferred under Section 6, come into operation on
the expiry of thirty days from the date on which authenticated copies thereof are sent under
sub-section (3) of Section 5, or where an appeal as aforesaid is preferred, on the expiry of
seven days from the date on which copies of the order of the appellate authority are sent
under sub-section (2) of Section 6.

8. Register of standing orders

A copy of all standing orders as finally certified under this Act Notes shall be filed by the
Certifying Officer in a register in the prescribed form maintained for the purpose, and the
Certifying Officer shall furnish a copy there of to any person applying there for on payment
of the prescribed fee.

9. Posting of standing orders

The text of the standing orders as finally certified under this Act shall be prominently posted
by the employer in English and in the language understood by the majority of his workmen
on special boards to be maintained for the purpose at or near the entrance through which the
majority of the workmen enter the industrial establishment and in all departments thereof
where the workmen are employed.

10. Duration and modification of standing orders

(1) Standing orders finally certified under this Act shall not, except on agreement between the
employer and the workmen [or a trade union or other representative body of the workmen] be
liable to modification until the expiry of six months from the date on which the standing
orders or the last modifications thereof came into operation.

(2) Subject to the provisions of sub-section (1), an employer or workman [or a trade union or
other representative body of the workmen] may apply to the Certifying Officer to have the
standing orders modified, and such application shall be accompanied by five copies of the
modifications proposed to be made, and where such modifications are proposed to be made
by agreement between the employer and the workmen 19 [or a trade union or other
representative body of the workmen], a certified copy of that agreement shall be filed along
with the application.

(3) The foregoing provisions of this Act shall apply in respect of an application under sub-
section (2) as they apply to the certification of the first standing orders.

(4) Nothing contained in sub-section (2) shall apply to an industrial establishment in respect
of which the appropriate Government is the Government of the State of Gujarat or the
Government of the State of Maharashtra.

10A. Payment of subsistence allowance

(1) Where any workman is suspended by the employer pending investigation or inquiry into

complaints or charges of misconduct against him, the employer shall pay to such workman

subsistence allowance–

(i) At the rate of fifty per cent of the wages which workman was entitled to immediately
preceding the date of such suspension, for the first ninety days of suspension; and

(ii) At the rate of seventy-five per cent of such wages for the remaining period of suspension
if the delay in the completion of disciplinary proceedings against such workman is not
directly attributable to the conduct of such workman.
(2) If any dispute arises regarding the subsistence allowance payable to a workman under
sub

section (1), the workman or the employer concerned may refer the dispute to the Labor Court,

constituted under the Industrial Disputes Act, 1947 (14 of 1947), within the local limits of
whose jurisdiction the industrial establishment wherein such workman is employed is situate
and the Labor Court to which the dispute is so referred shall, after giving the parties an
opportunity of being heard, decide the dispute and such decision shall be final and binding on
the parties.

(3) Notwithstanding anything contained in the foregoing provisions of this section, where
provisions relating to payment of subsistence allowance under any other law for the time
being in force in any State are more beneficial than the provisions of this section, the
provisions of such other law shall be applicable to the payment of subsistence allowance in
that State.

11. Certifying officers and appellate authorities to have powers of Civil Court

(1) Every Certifying Officer and appellate authority shall have all the powers of a Civil Court
for the purposes of receiving evidence, administering oaths, enforcing the attendance of
witnesses, and compelling the discovery and production of documents, and shall be deemed
to be a Civil Court within the meaning of [Sections 345 and 346 of the Code of Criminal
Procedure, 1973 (2 of 1974)]

(2) Clerical or arithmetical mistakes in any order passed by a Certifying officer or appellate
authority, or errors arising therein from any accidental slip or omission may, at any time, be
corrected by that Officer or authority or the successor in office of such officer or authority, as
the case may be.

12. Oral evidence in contradiction of standing orders not admissible

No oral evidence having the effect of adding to or otherwise varying or contradicting

standing orders finally certified under this Act shall be admitted in any Court.

12A. Temporary application of model standing orders

(1) Notwithstanding anything contained in Sections 1 to12, for the period commencing on the
date on which this Act becomes applicable to an industrial establishment and ending with the
date on which the standing orders as finally certified under this Act come into operation
under Section 7 in that establishment, the prescribed model standing orders shall be deemed
to be adopted in that establishment, and the provisions of Section 9, sub-section (2) of
Section 13 and Section 13-A shall apply to such model standing orders as they apply to the
standing orders so certified.

(2) Nothing contained in sub-section (1) shall apply to an industrial establishment in respect
of which the appropriate Government is the Government of the State of Gujarat or the
Government of the State of Maharashtra.

Section 12-A.–Where there are two categories of workmen, one in respect of the daily rated
workmen and the other in respect of the monthly rated workmen, if there are certified
standing orders in respect of the daily rated workers only, the prescribed model standing
orders should be deemed to have been adopted for those who are employed on the monthly
basis until such categories have their own certified standing orders.

13. Penalties and Procedure

(1) An employer who fails to submit draft standing orders as required by Section 3 or who
modifies his standing orders otherwise than in accordance with Section 10, shall be
punishable with fine which may extend to five thousand rupees, and in the case of a
continuing offence with a further fine which may extend to two hundred rupees for every day
after the first during which the offence continues.

(2) An employer who does any act in contravention of the standing orders finally certified
under this Act for his industrial establishment shall be punishable with fine which may extend
to one hundred rupees, and in the case of a continuing offence with a further fine which may
extend to twenty-five rupees for every day after the first during which the offence continues.

(3) No prosecution for an offence punishable under this section shall be instituted except with
the previous sanction of the appropriate Government.

(4) No Court inferior to that of [a Metropolitan or Judicial Magistrate of the second class]
shall try any offence under this section.

13A. Interpretation, etc., of standing orders

If any question arises as to the application or interpretation of a standing order certified under
this Act, any Employer or workman [or a trade union or other representative body of the
workmen] may refer the question to any one of the Labour Courts constituted under the
Industrial Disputes Act, 1947, and specified for the disposal of such proceeding by the
appropriate Government by notification in the Official Gazette, and the Labour Court to
which the question is so referred shall, after giving the parties an opportunity of being heard,
decide the question and such decision shall be final and binding on the parties.

13B. Act not to apply to certain industrial establishments.

Nothing in this Act shall apply to an industrial establishment in so far as the workmen
employed therein are persons to whom the Fundamental and Supplementary Rules, Civil
Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service)
Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defense Service
(Classification, Control and Appeal)

Rules or the Indian Railway Establishment Code or any other rules or regulations than may
be

notified in this behalf by the appropriate Government in the Official Gazette, apply.

14. Power of exempt

The appropriate Government may by notification in the Official Gazette exempt,

conditionally or unconditionally any industrial establishment or class of industrial
establishments from all or any of the provisions of this Act.

14A. Delegation of powers

The appropriate Government may by notification in the Official Gazette, direct that any
power

exercisable by it under this Act or any rules made thereunder shall, in relation to such matters
and subject to such conditions, if any, as may be specified in the direction, be exercisable
also– (a) where the appropriate Government is the Central Government, by such officer or
authority

subordinate to the Central Government or by the State Government, or by such officer or

authority subordinate to the State Government, as may be specified in the notification;

(b) where the appropriate Government is a State Government, by such officer or authority

subordinate to the State Government, as may be specified in the notification.

15. Power to make rules

(1) The appropriate Government may after previous publication, by notification in the
Official

Gazette, make rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules
may:

(a) prescribe additional matters to be included in the Schedule, and the procedure to be
followed in modifying standing orders certified under this Act in accordance with any such
addition;

(b) set out model standing orders for the purposes of this Act;

(c) prescribe the procedure of Certifying Officers and appellate authorities;

(d) prescribe the fee which may be charged for copies of standing orders entered in the
register of standing orders;

(e) provide for any other matter which is to be or may be prescribed; Provided that before any
rules are made under clause (a) representatives of both employers and workmen shall be
consulted by the appropriate Government.

(3) Every rule made by the Central Government under this section shall be laid as soon as
may be after it is made, before each House of Parliament while it is in session for a total
period of thirty days which may be comprised in one session or [in two or more successive
sessions, and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid] both Houses agree in making any modification in the rule or
both Houses agree that the rule should not be made, the rule shall thereafter have effect only
in such modified form or be of no effect, as the case may be ; so however that any such
modification or annulment shall be without prejudice to the validity of anything previously
done under that rule.

MATTERS TO BE PROVIDED IN STANDING ORDER UNDER THIS ACT

1. Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers,

[badlis].

2. Manner of intimating to workmen periods and hours of work, holidays, paydays and wage
rates.
3. Shift working.

4. Attendance and late coming.

5. Conditions of, procedure in applying for, and the authority which may grant,leave and
holidays.

6. Requirement to enter premises by certain gates, and liability to search.

7. Closing and re-opening of sections of the industrial establishment, and temporary

stoppages of work and the rights and liabilities of the employer and workmen arising
therefrom.

8. Termination of employment, and the notice thereof to be given by employer and workmen.

9. Suspension or dismissal for misconduct, and acts or omissions which constitute

misconduct.

10. Means of redress for workmen against unfair treatment or wrongful exactions by the
employer or his agents or servants.

11. Any other matter which may be prescribed.