Standing Orders Compliance under the Industrial Relations Code, 2020: An Employer’s Guide to Applicability, Certification and Implementation

Introduction

Standing Orders provide the statutory framework for defining and regulating conditions of service in industrial establishments. They establish the rules governing important aspects of employment, including worker classification, working hours, attendance, leave, disciplinary action, misconduct and termination. By formally documenting these conditions, Standing Orders promote consistency in employment practices, reduce ambiguity in workplace administration and provide a reference point for resolving employment-related disputes.

The Industrial Relations Code, 2020 (“IR Code”) consolidates the legal framework governing Standing Orders, replacing the Industrial Employment (Standing Orders) Act, 1946. Chapter IV (Sections 28–39) of the IR Code regulates their applicability, preparation, certification, modification, interpretation and enforcement.

The implementation of the four Labour Codes with effect from 21 November 2025, followed by the notification of the Industrial Relations (Central) Rules, 2026 and the Model Standing Orders, 2026 on 8 May 2026, has introduced a revised compliance framework for employers. The new regime raises the applicability threshold to 300 workers, provides for the adoption of Model Standing Orders through a deemed-certification mechanism and retains a certification process for establishment-specific requirements.

For employers, the changes require more than a review of existing employment documentation. They necessitate an assessment of workforce strength, the nature of industrial activities, applicable service conditions and the consistency of existing workplace policies with the new statutory framework. Understanding these requirements is an important aspect of labour law compliance in India.

1. Applicability of Standing Orders under the IR Code

Section 28(1) of the IR Code provides that Chapter IV applies to every industrial establishment in which 300 or more workers are employed, or were employed on any day during the preceding twelve months. This represents a significant increase from the general threshold of 100 workers under the Industrial Employment (Standing Orders) Act, 1946, although certain State amendments and notifications had prescribed lower thresholds under the earlier framework.

The applicability test is based on the number of workers employed on any day during the preceding twelve months. Consequently, employers should not assess applicability solely on the basis of their workforce strength on the date of review.

It is also important to distinguish between the number of employees and the number of workers as defined under the IR Code. The statutory threshold must be calculated by applying the Code’s definition of a worker, rather than automatically including every person engaged by the establishment.

Statutory exclusions and exemptions

Section 28(2) excludes establishments, to the extent that the workers employed therein are governed by specified statutory service rules or regulations. These include the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Service Regulations, specified rules governing civilians in defence services and the Indian Railway Establishment Code. Other rules or regulations may also be notified by the appropriate Government for this purpose.

Separately, Section 39 empowers the appropriate Government to exempt an industrial establishment or class of industrial establishments, conditionally or unconditionally, from all or any of the provisions of Chapter IV by notification.

Accordingly, employers should examine the nature of their establishment, the applicable workforce threshold, the statutory exclusions and any relevant government notifications before determining their Standing Orders obligations.

2. Model Standing Orders, 2026: What Employers Need to Know

Section 29(1) of the IR Code requires the Central Government to formulate Model Standing Orders governing conditions of service and matters incidental or connected thereto.

In exercise of this power, the Central Government notified the Model Standing Orders, 2026, through Notification S.O. 2312(E) dated 8 May 2026. The notification provides separate schedules for:

• Schedule A – Mining establishments;
• Schedule B – Manufacturing establishments; and
• Schedule C – Service establishments.

The sector-specific framework recognises that employment conditions and operational requirements vary across industries.

The Model Standing Orders address matters including worker classification, working hours, shift arrangements, attendance, leave, holidays, disciplinary proceedings, misconduct and grievance redressal. They also recognise contemporary working arrangements, including work from home, remote locations and virtual workplaces, subject to the conditions of appointment or an agreement between the employer and workers.

The applicable schedule should therefore be identified by examining the nature of the industrial establishment and the activities undertaken by it.

Transitional application of Model Standing Orders

Section 29(2) provides for the deemed adoption of Model Standing Orders during the period beginning when Chapter IV becomes applicable to an industrial establishment and ending when Standing Orders finally certified under the IR Code come into operation.

This is an important transitional provision. It ensures that the applicable Model Standing Orders provide the governing framework during the intervening period rather than leaving the establishment without a statutory reference for its service conditions. Section 30(11) also addresses the position of existing Standing Orders. Standing Orders in force immediately before the commencement of the relevant provisions of the IR Code continue and are deemed to be certified, insofar as they are not inconsistent with the Code or the rules made under it.

Employers transitioning from the earlier statutory regime should therefore assess their existing certified Standing Orders against the IR Code and applicable rules instead of assuming that all previous provisions automatically remain valid.

3. Adoption of Model Standing Orders or Establishment-Specific Certification

Employers covered by Chapter IV must consider whether to adopt the applicable Model Standing Orders or seek certification of provisions tailored to their establishment. Section 30 provides the framework for both routes.

A. Adoption of Model Standing Orders

Under Section 30(3), where an employer adopts the Central Government’s Model Standing Orders in respect of matters relevant to its industrial establishment or undertaking, the adopted Model Standing Orders are deemed to have been certified, subject to the prescribed procedure.

Rule 10 of the Industrial Relations (Central) Rules, 2026 sets out the procedure for communicating such adoption to the Certifying Officer. The employer must inform the concerned Certifying Officer, electronically, in person or by speed post, of the specific date from which the Model Standing Orders have been adopted. Upon receiving the intimation, the Certifying Officer records the relevant establishment particulars in the prescribed register.

The Certifying Officer may examine whether the establishment undertakes activities beyond those covered by the adopted Model Standing Orders. If additional activities are identified, the officer may, within 30 days of receiving the intimation, direct the employer to incorporate relevant additional provisions. The employer must comply with the directions within 30 days of receiving them and submit a compliance report.

Where no observation is made within 30 days of receipt of the intimation, the Model Standing Orders are deemed to have been certified under Rule 10(5). The adopted provisions take effect from the date specified in the employer’s intimation.

The adoption mechanism can simplify Standing Orders certification where the applicable Model Standing Orders adequately cover the establishment’s activities. However, employers should not treat adoption as a purely administrative exercise. Selecting the appropriate sectoral schedule and assessing whether the provisions adequately address the establishment’s operations remain essential.

B. Establishment-specific Standing Orders

Where an employer requires additional provisions to address its operational requirements, Section 30(1) permits the preparation of draft Standing Orders based on the applicable Model Standing Orders.

Such additional provisions must:

• Address the matters specified in the First Schedule to the IR Code that are applicable to the establishment;
• Remain consistent with the provisions of the IR Code; and
• Reflect the nature of the establishment’s activities.

For instance, a manufacturing establishment may require specific provisions governing shift operations, attendance, safety-related discipline and workplace access. A technology-enabled service establishment may require additional provisions addressing information security, confidentiality and conduct in virtual workplaces. The proposed provisions are subject to examination by the Certifying Officer or appellate authority, which must consider their fairness and reasonableness in light of the Model Standing Orders.

4. Procedure for Certification of Establishment-Specific Standing Orders

Where an employer opts for establishment-specific provisions, the certification process under Section 30 must be followed.

The principal stages are as follows:

Step 1: Preparation of the draft

The employer prepares draft Standing Orders based on the applicable Model Standing Orders, covering every relevant matter in the First Schedule and incorporating any additional provisions necessary for the establishment. Section 30(1) prescribes a period of six months from commencement of the Code for preparation of the draft. The Code commenced on 21 November 2025, making 21 May 2026 the corresponding six-month date.

Step 2: Consultation with workers’ representatives

Under Section 30(2), the employer must consult the relevant Trade Union, recognised negotiating union or members of the negotiating council, as applicable, before forwarding the draft to the Certifying Officer. Where no Trade Union operates in the establishment, the procedure under the applicable rules for selecting worker representatives must be followed.

Step 3: Submission to the Certifying Officer

The employer must forward the draft electronically or through another prescribed mode to the concerned Certifying Officer. The draft must be accompanied by the prescribed statement containing particulars of the establishment, its address, workforce strength and relevant Trade Union and negotiating union or negotiating council information.

Step 4: Notice and opportunity to submit comments

The Certifying Officer provides the relevant Trade Union, negotiating union or negotiating council with an opportunity to submit comments or suggestions. Where no Trade Union operates in the establishment, Rule 11 of the Central Rules provides for a meeting of workers to select their representatives. The selected representatives are then provided with the draft Standing Orders and an opportunity to submit comments.

The draft must be provided in the language spoken and understood by the majority of workers. The prescribed period for submitting comments or suggestions is 15 days from receipt of the notice.

Step 5: Hearing and determination

After considering the comments or objections, the Certifying Officer provides the relevant worker representatives with an opportunity of being heard. The officer then determines whether modifications or additions are necessary to make the draft certifiable, taking into account the statutory requirements and the fairness and reasonableness of the proposed provisions.

Step 6: Certification and circulation

Upon approval, the Certifying Officer certifies the Standing Orders and authenticates the relevant copies. Under Section 30(8), authenticated copies must be forwarded within seven days to the employer and the relevant negotiating union, negotiating council, Trade Union or worker representatives, as applicable. The Central Rules prescribe the applicable modes of transmission, including electronic communication and hard-copy service.

5. Certification Timelines, Appeals and Date of Operation

Section 30(5) prescribes a period of 60 days for completion of the certification procedure from the date of receipt of the draft Standing Orders or proposed modifications, as applicable. If the Certifying Officer fails to complete the prescribed proceedings within this period, the draft Standing Orders or modifications are deemed to have been certified upon expiry of the 60-day period. This mechanism is distinct from deemed certification arising from adoption of Model Standing Orders under Section 30(3) read with Rule 10.

An employer, Trade Union, negotiating union or negotiating council, or the applicable representative body of workers, may appeal against an order of the Certifying Officer under Section 32. The appeal must be filed within 60 days of receipt of the order.

Section 33 specifies when certified Standing Orders or modifications become operative:

• Where no appeal is preferred, they come into operation upon expiry of 30 days from the date on which authenticated copies are sent under Section 30(8).
• Where an appeal is preferred, they come into operation upon expiry of seven days from the date on which copies of the appellate authority’s decision are sent in the prescribed manner.

Employers should accordingly maintain records of certification orders, authenticated copies, appeal proceedings and dates of communication to establish when the applicable Standing Orders become operative.

6. Display and Maintenance of Standing Orders

Certification or adoption of Standing Orders must be followed by appropriate workplace implementation. Rule 16 of the Industrial Relations (Central) Rules, 2026 requires employers to maintain the text of finally certified, deemed-certified or adopted Model Standing Orders in Hindi, English and the local language.

The Standing Orders must be displayed in a legible manner on a special board maintained for this purpose at or near the entrance through which the majority of workers enter the industrial establishment. They may also be posted on the establishment’s designated portal or website, where available. Employers should ensure that the applicable text is accessible to workers and that relevant managers and personnel responsible for employment administration are familiar with its provisions.

7. Modification of Certified Standing Orders

Standing Orders may require modification to reflect changes in operational requirements, employment arrangements or applicable legal obligations. However, modifications must follow the statutory procedure, and employers often seek guidance from labour law consultants in India to ensure that each change is implemented correctly. Under Section 35, certified Standing Orders cannot ordinarily be modified until six months have elapsed from the date on which they, or their last modification, came into operation. An exception is available where the employer and the workers, negotiating union, Trade Union or other representative body of workers agree to the modification.

After the prescribed period, an employer, worker, Trade Union or other representative body of workers may apply to the Certifying Officer for modification. The modification process is governed by the certification framework under Section 30. The application must identify the existing provisions proposed to be modified, the proposed changes and the prescribed supporting particulars. The Certifying Officer examines whether the proposed modifications comply with the IR Code and satisfy the applicable requirements of fairness and reasonableness. Section 36 further provides that oral evidence having the effect of adding to, varying or contradicting finally certified Standing Orders cannot be admitted in any Court.

Accordingly, employers should ensure that material changes to employment conditions are reflected through the prescribed modification process rather than implemented through informal workplace instructions or unilateral amendments.

8. Interpretation and Disputes Relating to Standing Orders

Disagreements may arise concerning the interpretation or application of certified Standing Orders, particularly in matters involving worker classification, disciplinary action, leave entitlements and termination.

Section 37 provides a mechanism for resolving such disputes. An employer, worker or Trade Union concerned may approach the appropriate Tribunal having territorial jurisdiction over the industrial establishment or undertaking for a determination.

The Tribunal must provide the concerned parties with a reasonable opportunity of being heard before deciding the matter. Its decision is final and binding on the concerned employer and workers. This provision makes it important for employers to ensure that the language of their Standing Orders is clear, consistent and aligned with the establishment’s actual employment practices.

9. Disciplinary Proceedings and Subsistence Allowance

Standing Orders play an important role in regulating disciplinary proceedings and ensuring that allegations of misconduct are addressed through a defined procedure. Section 38 of the IR Code provides that where a worker is suspended pending investigation or inquiry into complaints or charges of misconduct, the investigation or inquiry, or both where applicable, must ordinarily be completed within 90 days from the date of suspension.

The Standing Orders must also provide for payment of subsistence allowance during the period of suspension at the following statutory rates:

• First 90 days: 50% of the wages to which the worker was entitled immediately before suspension.
• Beyond 90 days: 75% of such wages, provided the delay in completing the disciplinary proceedings is not directly attributable to the conduct of the worker.

The Model Standing Orders, 2026 also prescribe disciplinary procedures and identify forms of misconduct, including certain violations involving confidentiality, unauthorised access to information systems, false claims and sexual harassment, depending on the applicable sectoral schedule. Employers should ensure that their disciplinary policies, enquiry procedures and grievance mechanisms are aligned with the applicable Standing Orders and other relevant employment legislation, including the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

10. Penalties for Non-Compliance with Standing Orders

The IR Code provides for financial penalties for failure to comply with the statutory requirements governing Standing Orders. Section 86 prescribes the following consequences:

Failure to submit draft Standing Orders or unauthorised modification

Under Section 86(10), an employer who fails to submit draft Standing Orders as required under Section 30, or modifies Standing Orders otherwise than in accordance with Section 35, is liable to a fine ranging from ₹50,000 to ₹2,00,000. In the case of a continuing offence, an additional fine of ₹2,000 per day may be imposed for the period during which the offence continues.

Contravention of finally certified Standing Orders

Under Section 86(11), an employer who acts in contravention of finally certified Standing Orders is liable to a fine ranging from ₹1,00,000 to ₹2,00,000.

Repeat offences

Section 86(12) provides for enhanced consequences where a person, having previously been convicted under Section 86(11), commits the same offence again. The repeat offence is punishable with a fine ranging from ₹2,00,000 to ₹4,00,000, imprisonment for a term extending up to three months, or both.

These provisions demonstrate that Standing Orders compliance is not limited to preparing and certifying the relevant document. Employers must also ensure that actual workplace practices, disciplinary decisions and employment-related actions remain consistent with the Standing Orders in force.

11. Employer Compliance Considerations under the IR Code

In view of the revised statutory framework, employers should consider undertaking a structured review of their existing employment documentation and workplace practices.

Key compliance considerations include:

• Workforce assessment: Determine whether the establishment meets the 300-worker threshold by examining workforce strength during the preceding twelve months and applying the statutory definition of a worker.
• Existing Standing Orders: Review previously certified Standing Orders to identify provisions that may be inconsistent with the IR Code or applicable rules.
• Sectoral applicability: Identify the appropriate Model Standing Orders based on the nature of the establishment’s activities.
• Adoption or certification: Evaluate whether adoption of the Model Standing Orders is sufficient or whether additional establishment-specific provisions are necessary.
• Consultation and documentation: Ensure that consultation with the relevant Trade Union or worker representatives and the prescribed certification or adoption formalities are completed.
• Workplace implementation: Align employment policies, disciplinary procedures, leave arrangements, attendance requirements and termination practices with the applicable Standing Orders.
• Display and accessibility: Maintain the prescribed language versions and ensure that the Standing Orders are displayed and accessible to workers.
• Periodic review: Reassess the Standing Orders whenever operational requirements or applicable legal provisions change, following the statutory modification procedure.

It is also important to determine whether the establishment falls within the Central Government or State Government sphere. The Industrial Relations (Central) Rules, 2026 should not automatically be treated as applicable to every industrial establishment across India. Employers governed by the State Government must examine the relevant State rules, notifications and designated authorities.

Conclusion

The Industrial Relations Code, 2020 has revised the statutory framework governing Standing Orders by increasing the applicability threshold, recognising sector-specific Model Standing Orders and introducing a streamlined mechanism for deemed certification. However, the revised framework does not eliminate the need for careful employment documentation or ongoing statutory compliance. Employers must assess whether Chapter IV applies to their establishments, review existing Standing Orders, identify the appropriate sectoral framework and determine whether adoption of Model Standing Orders or establishment-specific certification is more suitable.

Compliance also extends to the implementation of workplace rules, disciplinary procedures, subsistence allowance obligations, statutory display requirements and modifications to certified Standing Orders.

For businesses reviewing their employment documentation or undertaking labour law compliance assessments in India, a structured review of Standing Orders can help identify regulatory gaps and reduce the risk of employment-related disputes and statutory penalties. Obtaining appropriate employment law advisory support can also assist employers in aligning their workplace policies with the requirements of the IR Code and the applicable rules.

Frequently Asked Questions

Last Updated on 2 November, 2026