Surya Electrial Industries had its own Standing Orders duly approved by the Certifying Authority. After 5 years of its application, the Surya Electrical Industry was acquired by Shashi Electrical Industries. After the ac

CS Professional · Labour Laws & Practice · PYQS · June 2024
Surya Electrial Industries had its own Standing Orders duly approved by the Certifying Authority. After 5 years of its application, the Surya Electrical Industry was acquired by Shashi Electrical Industries. After the acquisition, Shashi Industries desires to enforce its own Standing Orders to the employees of the newly acquired Surya Electrical Industries. (ii) Whether the Standing Orders of the Surya Electrical Industries are applicable to its employees even after the change of ownership ?

Answer & Explanation:

The Standing Orders of the Surya Electrical Industries are applicable to its employees even after change of ownership and would not automatically cease to exist. Shashi Electrical Industries need to follow the procedure for its standing orders application to the newly acquired Surya Electrical Industries workers as per Section 4 (Conditions for certification of standing orders), Section 5 (Certification of standing orders) and Section 10 (Duration and modification of standing orders) of the Industrial Employment (Standing Orders) Act, 1946. The Provisions as to the duration and modification of Standing Orders are provided in Section 10 of the Industrial Employment (Standing Orders) Act, 1946. Section 10 prohibits an employer to modify the Standing Orders once they are certified under this Act except on agreement between the employer and the workmen or a trade union or other representative body of the workmen. Such modification will not be affected until the expiry of 6 months from the date on which the Standing Orders were last modified or certified as the case may be. The modified Standing Order requires certification process for its authentication.

Topics: Industrial Employment (Standing Orders) Act, 1946

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic