Taxmann's Analysis | Standing Orders under Industrial Relations Code 2020
Workplace Rules Governing Employment Conditions & Conduct in Industrial Establishments
What Employers, Workers & HR Must Know?
Workplace Rules Governing Employment Conditions & Conduct in Industrial Establishments
1. Introduction
The term’ Standing Orders’ refers to a set of rules governing the conditions of employment and the conduct of both workers and employers within industrial establishments. These orders play a crucial role in bringing clarity and consistency to employment conditions, encompassing various aspects such as work hours, holidays, workplace behaviour, disciplinary procedures and other essential aspects of employment. They act as a code of conduct, protecting workers from arbitrary actions while ensuring systematic workforce management for employers.
Earlier, the provisions relating to Standing Orders were governed by the Industrial Employment (Standing Orders) Act, 1946. However, with the enactment of the Industrial Relations Code, 2020, these provisions have been subsumed into the Code and are now contained in Chapter IV.
2. Meaning of Standing Orders
Section 2(zj) of the Industrial Relations Code, 2020, defines standing orders as “orders relating to matters set out in the First Schedule”. The First Schedule sets out the 11 matters to be provided in the standing orders.
2.1 Matters to be Provided in Standing Orders
Standing Orders must provide for the following matters:
(a) Classification of workers, whether permanent, temporary, apprentices, probationers, badlis or fixed-term employment.
(b) Manner of intimating to workers periods and hours of work, holidays, paydays, and wage rates.
(c) Shift working.
(d) Attendance and late coming.
(e) Conditions of, procedure in applying for, and the authority that may grant leave and holidays.
(f) Requirement to enter premises by certain gates, and liability to search.
(g) Closing and reporting of sections of the industrial establishment, temporary stoppages of work and the rights and liabilities of the employer and workers arising therefrom.
(h) Termination of employment, and the notice thereof, is to be given by the employer and the workers.
(i) Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
(j) Means of redress for workers against unfair treatment or wrongful exactions by the employer or his agents or servants.
(k) Any other matter which the appropriate Government may specify by notification.
3. Objectives of Standing Orders
The objectives of standing orders are as follows:
(a) To establish uniformity in terms and conditions of employment.
(b) To ensure that conditions of service are clearly communicated to workers, thereby reducing ambiguity and misunderstanding.
(c) To define standards of conduct and discipline at the workplace and prescribe transparent disciplinary procedures.
(d) To promote harmonious industrial relations between employers and workers by providing certainty on matters such as working hours, leave, suspension and termination.
(e) To regulate recruitment, discharge, disciplinary actions, leaves, holidays and other pertinent aspects concerning workers in industrial establishments.
(f) To minimise disputes and grievances by laying down transparent, fair and legally compliant service rules.
4. Applicability of Standing Orders
The applicability of standing orders is as follows:
4.1
Threshold Rule – Who Must Draft Standing Orders?
As per Section 28(1) of the Industrial Relations Code, 2020, standing orders are mandatory for industrial establishments where 300 or more workers are employed or were employed on any day of the preceding 12 months.
The current or average workforce strength does not determine the threshold. Instead, it is triggered if the number of workers reaches or exceeds 300 on any single day during the preceding 12 months.
Example
Suppose an industrial establishment ordinarily employs 275 workers. During a peak production period in the preceding 12 months, the establishment engages an additional 30 workers for 2 weeks, bringing the total workforce to 305 on certain days. Even if the workforce strength subsequently falls below 300, the Standing Orders provisions would become applicable, as the statutory threshold was crossed on at least one day during the relevant period.
4.1.1
Meaning of ‘Industrial Establishment’
As per Section 2(r) of the Industrial Relations Code, 2020, the term’ industrial establishment or undertaking’ means an establishment or undertaking in which any industry is carried on:
Provided that where several activities are carried on in an establishment or undertaking, and only one or some of such activities are an industry or industries1, then —
(a) If any unit of such establishment or undertaking carrying on any activity, being an industry, is severable from the other unit or units of such establishment or undertaking which is not carrying on or aiding the carrying on of any such activity, such unit shall be deemed to be a separate industrial establishment or undertaking;
(b) if the predominant activity or each of the predominant activities carried on in such establishment or undertaking or any unit thereof is an industry and the other activity or each of the other activities carried on in such establishment or undertaking or unit thereof is not severable from and is, for the purpose of carrying on, or aiding the carrying on of, such predominant activity or activities, the entire establishment or undertaking or, as the case may be, unit thereof shall be deemed to be an industrial establishment or undertaking.
4.2 Worker Count – What HR Must Check?
For threshold determination, HR must verify the total number of workers employed on any day in the preceding 12 months. The term worker is defined under section 2(zr) of the Industrial Relations Code, 2020, and includes any person employed in an industry to perform manual, skilled, unskilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment are express or implied.
The definition also includes working journalists and sales promotion employees, and, for any proceeding relating to an industrial dispute, also covers persons who have been dismissed, discharged, retrenched, or terminated in connection with such dispute.
However, apprentices engaged under the Apprentice Act, 1961, and persons employed mainly in a managerial or administrative capacity, or in a supervisory capacity, drawing wages exceeding Rs 18,000 per month, or an amount as may be notified by the Central Government, are excluded from the scope of the term worker.
Example
Suppose an industrial establishment employs a total of 315 persons, comprising 285 shop-floor workers engaged in production activities, 18 shift supervisors, and 12 department heads. The shift supervisors are responsible for allocating daily work, monitoring output, and reporting attendance; however, they do not have the authority to appoint or terminate employees, grant promotions, or impose major disciplinary penalties. Their role is limited to operational supervision, and they work under instructions issued by senior management.
1 Section 2(p) of the Industrial Relations Code, 2020
On the other hand, the 12 department heads exercise independent managerial authority, including the power to sanction leave, initiate disciplinary proceedings, recommend termination, and control departmental budgets. How to determine the applicability of Standing Orders?
In this case, for the purpose of determining the applicability of Standing Orders, the employer must count only those persons who qualify as ‘worker’ under section 2(zr) of the Code. Accordingly, the 285 shop-floor workers and the 18 shift supervisors would be included in the worker count, as the shift supervisors fall within the definition of “worker”. The 12 department heads, employed mainly in managerial capacities, would be excluded from the count.
As a result, the total number of workers stands at 303, thereby crossing the statutory threshold and triggering mandatory compliance with the Standing Orders provisions.
5. Preparation of Draft Standing Orders by the Employer
The preparation of draft standing orders is as follows:
5.1
Employer Must Prepare Draft Standing Orders Within 6 Months of Commencement of Code
The employer is required to prepare draft standing orders within 6 months of the commencement of the Code, based on the model standing order (MSO) for the matters specified in the First Schedule. The employer may include any additional provisions necessary for the industrial establishment or undertaking, provided such provisions are consistent with the Code2
5.2 Consultation with Trade Unions or Negotiating Bodies
The employer must consult the Trade Union, a recognised negotiating union, or members of the negotiating council relating to the industrial establishment or undertaking in respect of the draft of the standing order. After such consultation, the draft standing orders must be forwarded to the certifying officer, electronically or otherwise, for certification3 .
5.3 Adoption of Model Standing Orders
Where an employer adopts the model standing orders of the Central Government applicable to the industrial establishment, such standing orders are deemed to be certified. The employer must inform the certifying officer in the prescribed manner. However, if the certifying officer has any observations, the employer may be directed to amend the standing orders within the prescribed time4.
2 Section 30(1) of the Industrial Relations Code, 2020
3 Section 30(2) of the Industrial Relations Code, 2020
4 Section 30(3) of the Industrial Relations Code, 2020
5.4 Drafting of Modifications to Standing Orders
If any modification to the existing standing orders is required, the employer must prepare a draft of such modifications in accordance with the Code. These modifications must be forwarded to the certifying officer for certification within six months from the date on which the provisions of the Chapter become applicable to the industrial establishment5
6. Procedure for Certification of Standing Orders Under the Industrial Relations Code, 2020
The procedure for certification of standing orders under the Industrial Relations Code, 2020, is as follows:
6.1 Notice and Hearing by Certifying Officer
Upon receipt of the draft standing orders or modifications, the certifying officer must issue notice to the Trade Union, negotiating union, negotiating council, or, where no Trade Union exists, to the representatives of workers chosen in the prescribed manner. After considering their comments and providing an opportunity to be heard, the certifying officer must decide whether any modification or addition is necessary and must pass a written order6
6.1-1 Whether An Appeal Can Be Made Against the Order of the Certifying Officer?
An employer, trade union, the negotiating union or council, or, where there is no negotiating union or council, any union or representative body of workers in the establishment or undertaking may file an appeal within 60 days of receipt of the order of the certifying officer. The appeal can be filed to the appellate authority appointed by the appropriate Government, and the authority must dispose of the appeal in the manner prescribed under the Draft Industrial Relations (Central) Rules, 2025.
6.2
Time Limit for Certification and Deemed Certification
The certifying officer must complete the certification process within 60 days of receipt of the draft standing orders or the proposed modifications. If this timeline is not adhered to, the draft standing orders or modifications must be deemed certified upon expiry of the said period7
6.3 Conditions for Certifiability of Standing Orders
The Standing orders must be certifiable only if they provide for every matter specified in the First Schedule applicable to the industrial establishment and are otherwise in conformity with the provisions of the Code8.
5 Section 30(4) of the Industrial Relations Code, 2020
6 Section 30(5) of the Industrial Relations Code, 2020
7 Proviso to Section 30(5) of the Industrial Relations Code, 2020
8 Section 30(6) of the Industrial Relations Code, 2020
6.4 Adjudication on Fairness and Reasonableness
It is the function of the certifying officer or the appellate authority to adjudicate upon the fairness or reasonableness of the provisions of the standing orders, keeping in view the provisions of the model standing orders referred to in section 29 of the Code9
6.5 Communication of Certified Standing Orders
After certification, the certifying officer must, within seven days, send authenticated copies of the certified standing orders or modifications to the employer, the Trade Union, the negotiating union, the negotiating council, or the workers’ representatives, as applicable10.
6.6 Accompanying Statement with Draft Standing Orders
Every draft standing order or draft modification must be accompanied by a statement containing prescribed particulars of the workers employed in the industrial establishment, the Trade Unions to which they belong, and details of the negotiating union or negotiating council, if any11
6.7 Joint Standing Orders by Group of Employers
A group of employers in similar establishments can submit a joint draft of standing orders, subject to prescribed conditions. For such joint submissions, references to employer, Trade Union, and negotiating union or negotiating council must be deemed to include all concerned parties of similar establishments12
6.8 Continuance of Existing Standing Orders
Standing orders existing on the date of commencement of the relevant provisions of the Code must continue to apply, to the extent they are not inconsistent with the Code or the rules made thereunder. Such standing orders must be deemed to have been certified and must be governed by the provisions of this Chapter13
7. Date of Operation of Standing Orders and Their Availability
The standing orders or modified standing orders must come into effect on the expiry of thirty days from the date on which authenticated copies are sent to the employer and to the negotiating union or council, if no appeal is filed under section 32.
Where an appeal is filed, standing orders or modified standing orders must come into effect on the expiry of seven days from the date on which copies of the order of the appellate authority are sent in the prescribed manner.
9 Section 30(7) of the Industrial Relations Code, 2020
10 Section 30(8) of the Industrial Relations Code, 2020
11 Section 30(9) of the Industrial Relations Code, 2020
12 Section 30(10) of the Industrial Relations Code, 2020
13 Section 30(11) of the Industrial Relations Code, 2020
Further, the employer must keep the final certified standing orders in the prescribed language and format and ensure that they are accessible to the concerned workers.
8. Authentication of Certified Standing Orders
The standing orders or modifications to the standing orders must be authenticated by the certifying officer and sent electronically, along with a hard copy by registered post or speed post, within 7 days from the date of authentication to the concerned employers, registered trade unions, or chosen representatives of workers. However, no authentication will be required for deemed certification or for cases where the employer has certified adoption of model standing orders14
9. Sending of Orders and Maintenance of Standing Orders
The order of the appellate authority must be sent electronically or within 3 days of the disposal of the appeal to the employer, trade union, negotiating union or council or any union or representative body of workers by whom the appeal has been filed.
The text of standing orders, as finally certified or deemed to have been certified, or adopted model standing orders, must be maintained by the employer in Hindi, English, or the language understood by the majority of workers in the industrial establishment.
Further, the certified standing orders must be displayed in legible condition by the employer on the special board to be maintained for the purpose at the entrance or near the entrance of the industrial establishment through which the majority of workers enter and may also be posted on the designated portal/website, if any, of such industrial establishment.
10. Register For Filing Certified Copy of Standing Orders
The certifying officer must file a copy of all standing orders in a register maintained for the purpose or uploaded in electronic form or in such other form as may be prescribed. The certifying officer must furnish a copy of certified standing orders or deemed certified standing orders to any person applying for the same, on payment of the fee prescribed under the Draft Industrial Relations (Central) Rules, 2025.
As per the Draft Industrial Relations (Central) Rules, 2025, the certifying officer must maintain electronically a register in Form-III of all finally certified standing orders or deemed to have been certified or adopted model standing orders, which must contain details of –
(a) the unique number assigned to each standing order;
(d) the areas of operation of the industrial establishment; and
(e) the date of certification or deemed certification or date of adoption of model standing orders by each undertaking;
The certifying officer must furnish a copy of the certified standing orders or deemed certified standing orders to any person on payment of a fee of two rupees per page of such standing orders.
11. Duration and Modification of Standing Orders
The certified standing orders cannot be modified for a period of 6 months from the date on which the standing orders or the last modifications came into operation, unless there is an agreement between the employer and the workers, or a negotiating union, a Trade Union, or any other representative body of the workers15 .
11.1
Application for Modification of Standing Orders
Any employer, worker, Trade Union, or other representative body of workers may apply to the Certifying Officer for the modification of the standing orders. The application must be submitted electronically, in person, by registered post, or by speed post, and must contain the particulars of the standing orders proposed to be modified, along with a tabular statement containing details of the proposed modifications, reasons, and details of registered Trade Unions.
The statement must be signed by a person authorised by the industrial establishment or undertaking, or by workers, a Trade Union, or other representative body of the workers who has submitted the application for modification16 .
12. Legal Effect and Interpretation of Certified Standing Orders
The other provisions of Standing Orders are as follows:
12.1
Oral Evidence in Contradiction of Standing Orders is Not Admissible
No oral evidence has the effect of adding to, varying, or contradicting standing orders as finally certified must be admitted in any Court17 .
12.2
Interpretation of Standing Orders
If any doubt or dispute arises about how the certified standing orders are to be applied or interpreted, the employer, any worker, a group of workers, or the relevant Trade Union in relation to workers employed in an industrial establishment or undertaking may apply to the Tribunal, within the local limits of whose territorial jurisdiction the establishment or branch of undertaking is situated.
15 Section 35(1) of Industrial Relations Code, 2020
16 Section 35(2) of Industrial Relations Code, 2020, read with Draft Industrial Relations (Central) Rules, 2025
17 Section 36 of Industrial Relations Code, 2020
The Tribunal will hear all parties after giving them a reasonable opportunity to present their case and will then decide the issue. The Tribunal’s decision shall be final and binding on both the employer and the workers18
13. Meaning of Model Standing Order
A model standing order, commonly known as MSO, is a set of rules, regulations, and obligations drafted by the Central Government to regulate the conditions of employment of workers in industrial establishments. The purpose of model standing orders is to safeguard workers’ fundamental rights and serve as a guide for employers in drafting standing orders for their industrial establishments.
14. Laws Governing Model Standing Orders
Earlier, Section 15 of the Industrial Employment (Standing Orders) Act, 1946, conferred the power of making standing orders on the Government. It prescribed the matters to be included in the Schedule, the procedure to be followed for modifying standing orders certified under the Act, the procedures for certifying officers and appellate authorities, and the fee that may be charged for copies of standing orders.
However, with the amalgamation of several labour legislations into codes such as the Industrial Relations Code, 2020, the Social Security Code, 2020, the Code on Wages, 2019 and the Occupational Safety, Health and Working Conditions Code, 2020, the Industrial Employment (Standing Orders) Act, 1946, was incorporated into the Industrial Relations Code, 2020.
Section 28 of the Industrial Relations Code, 2020, states that the provisions of Chapter IV shall apply to every industrial establishment where 300 or more workers are/employed on any day of the preceding 12 months.
Under the Industrial Relations Code, 2020, Section 29 confers the Central Government with the power to make model standing orders relating to the terms and conditions of employment of workers, including work timings, holidays, wage rates, leave, attendance, transfers, grievance redressal, and complaints.
14.1 When do Model Standing Orders Come into Force?
As per the Industrial Relations Code, 2020, Model Standing Orders come into force automatically once the Standing Orders provisions become applicable to an industrial establishment. They apply as a temporary and default set of service conditions from that point onwards and continue to govern the establishment until the employer’s own Standing Orders are certified and brought into operation.
During this interim period, Model Standing Orders are treated as binding and enforceable, in the same manner as certified Standing Orders, ensuring that employees’ service conditions remain clearly regulated even before establishmentspecific Standing Orders take effect.
18 Section 37 of Industrial Relations Code, 2020
15. Penalties for Non-Compliance
The penalties for various non-compliances under the Industrial Relations Code, 2020, are set out in section 86 of the Code.
S.No. Nature of Non-Compliance Relevant Provisions Penalty Prescribed under Section 86
1. Failure of the employer to submit draft Standing Orders within a period of six months from the date of commencement of the Code.
Section 30 Fine not less than Rs 50,000 and up to Rs 2 lakh, and
In the case of a continuing offence, an additional fine of Rs 2,000 per day till the offence continues.
2. Modification of Standing Orders otherwise than in accordance with the provisions of Chapter IV
Section 35 Fine not less than Rs 50,000 and up to Rs 2 lakh, and
In the case of a continuing offence, an additional fine of Rs 2,000 per day.
3. Doing any act in contravention of the Standing Orders, finally certified under this Code
Chapter IV Fine not less than Rs 1 lakh and up to Rs 2 lakh, and
In the case of a subsequent offence, a fine not less than Rs 2 lakh and not exceeding Rs 4 lakh, or imprisonment for a term which may extend to 3 months, or both
16. Conclusion
The Standing Orders regime under the Industrial Relations Code, 2020, represents a decisive shift towards clarity, standardisation, and procedural certainty in industrial employment. By prescribing a higher applicability threshold, fixed timelines for drafting and certification, and deeming provisions to prevent administrative delays, the Code seeks to balance operational flexibility for employers with statutory protection for workers.
For HR and compliance teams, Standing Orders are no longer a passive statutory requirement but a central governance instrument that directly influences workforce discipline, dispute management, and the legality of employment actions. Timely drafting, meaningful consultation, proper certification, and transparent display of Standing Orders are therefore essential not only to avoid penalties but also to ensure harmonious industrial relations and legally sustainable employment practices.
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