Standing Orders
Standing Orders
Understanding the Framework under the Industrial Relations Code, 2020
What is the Core Mandate?
The IR Code, 2020 mandates that industrial establishments must formally define and certify the conditions of employment. This crucial requirement for creating Standing Orders applies to any establishment with:
300+
WORKERS
This threshold was raised from 100 workers under previous legislation, aiming to reduce the compliance burden on smaller establishments.
The Nature of Standing Orders
Certified Standing Orders are not just guidelines; they are the bedrock of fair employment, creating clarity and stability.
Legally Binding
Once certified, they have the full force of law, governing the employer-employee relationship.
Uniform & Clear
They ensure consistent and unambiguous terms of service for all workers in similar roles.
Protective Shield
They protect workers from arbitrary actions and unfair treatment by the employer.
Statutory Duty
It is a mandatory legal requirement for all qualifying industrial establishments.
The 7-Step Certification Journey
The path to finalizing Standing Orders is a structured, consultative process overseen by a Certifying Officer to ensure fairness and compliance.
Submit Draft
Employer submits 5 copies to Certifying Officer within 6 months.
Consult Workers
Employer must consult with trade unions or worker representatives.
Officer Scrutiny
Officer checks for fairness, reasonability, and legal conformity.
Worker Feedback
Draft sent to workers, who have 15 days for objections.
Hold Hearing
Both parties are heard by the Certifying Officer.
Certify Orders
Officer certifies the draft, with or without modifications.
Distribute
Authenticated copies are sent to employer and workers.
Operation & Binding Effect
Once certified, Standing Orders become an integral part of the employment contract, overriding any conflicting individual terms. They must be prominently displayed for all workers to see.
Effective Date
They come into force 30 days after authenticated copies are distributed, marking the official start of their legal operation.
Superseding Power
These statutory conditions prevail over any individual employment contract terms that are inconsistent with them.
Temporary Application of Model Orders
To ensure no regulatory vacuum exists while an establishment finalizes its own rules, the government’s Model Standing Orders apply temporarily.
When do they apply? From the date the IR Code applies until the establishment’s own Standing Orders are officially certified.
Purpose: This provides a default set of rules, offering immediate protection and clarity for workers from day one.
Modification of Standing Orders
Standing Orders are living documents. They can be modified by either the employer or the workers through a formal application to the Certifying Officer, following a process similar to the original certification.
- Application: Either party can apply to the Certifying Officer for a modification.
- Grounds: Must be based on a change in circumstances or if existing orders are deemed unfair or impractical.
- Process: Follows the same principles of consultation and hearing as the initial certification.
- Time Limit: No new application is allowed within 6 months of the last modification, unless by mutual agreement.
Standing Orders in the IR Code, 2020
Interpretation & Enforcement of standing orders
Old Threshold
100+
Workers
New Applicability Threshold
300+
Workers (Section 28)
Key Changes: 1946 Act vs. 2020 Code
The Industrial Relations Code, 2020 introduces significant shifts in how Standing Orders are managed, focusing on simplifying compliance for a larger number of establishments.
The New Streamlined Certification Process (Section 30)
The Code introduces a time-bound process with a “deemed certification” provision to prevent delays.
What Must Standing Orders Contain? (First Schedule)
The First Schedule mandates coverage across several key areas of employment to ensure clarity and fairness.
Model Standing Orders (Section 29)
To promote uniformity, the Central Government now frames Model Orders. Establishments can adopt them for instant compliance.
Adopt & Go!
Simply inform the Certifying Officer to have Model Orders deemed as certified for your establishment.
Enforcement & Dispute Resolution
The Code establishes a clear pathway for addressing grievances and imposes stricter penalties for non-compliance.
