---
title: "Standing Orders under the Industrial Relations Code, 2020: Applicability, Certification, Compliance and Penalties"
date: 2026-10-31
author: "Divyanshi Mehra"
url: https://ksandk.com/labour-employment/standing-orders-industrial-relations-code-2020/
---

# Standing Orders under the Industrial Relations Code, 2020: Applicability, Certification, Compliance and Penalties

Posted On - 31 October, 2026 • By - Divyanshi Mehra

![Standing orders under the Industrial Relations Code, 2020 represented by legal compliance documents, certification symbols, a balance scale, gavel, and industrial workers.](https://ksandk.com/wp-content/uploads/Industrial-Compliance-Checklist-Desk-1.png)

## Introduction

Standing Orders form an important part of India’s industrial employment framework. They prescribe the conditions of service governing workers in an industrial establishment and provide clarity on matters such as worker classification, working hours, attendance, leave, disciplinary action and [termination of employment](https://ksandk.com/labour-employment/layoff-retrenchment-closure-industrial-relations-code-2020/). By requiring these conditions to be formally documented, Standing Orders seek to promote transparency in employment relationships and provide a framework for the consistent administration of workplace rules.

The Industrial Relations Code, 2020 (“IR Code”) substantially revises the statutory framework governing Standing Orders, which was previously regulated under the Industrial Employment (Standing Orders) Act, 1946. Chapter IV (Sections 28–39) of the IR Code deals specifically with their applicability, preparation, certification, modification and enforcement.

One of the significant changes introduced by the IR Code is the increase in the applicability threshold from 100 to 300 workers. The Code also introduces a mechanism under which employers may adopt the Central Government’s Model Standing Orders, with such adoption being deemed certified, subject to the prescribed procedure. Where an employer proposes establishment-specific provisions, the conventional certification process continues to apply.

With the four [Labour Codes](https://ksandk.com/labour-employment/fixed-term-employment-labour-codes-compliance-checklist/) coming into force on 21 November 2025, followed by the notification of the Industrial Relations (Central) Rules, 2026 and the Model Standing Orders, 2026, on 8 May 2026, employers are required to assess their existing employment policies and Standing Orders against the revised statutory framework. The Model Standing Orders, 2026 prescribe separate schedules for industrial establishments in the mining, manufacturing and service sectors, reflecting the differing operational requirements of these industries.

## 1. What Are Standing Orders and What Matters Do They Cover?

Section 2(zj) of the IR Code defines “standing orders” as orders relating to matters set out in the First Schedule to the Code.

These matters include:

- Classification of workers, including permanent, temporary, probationary, badli, fixed-term and other categories;
- Manner of intimating working hours, holidays, paydays and wage rates;
- Shift working arrangements;
- Attendance and late coming;
- Conditions and procedures relating to leave and holidays;
- Entry into premises and search procedures;
- Temporary stoppage of work and [closure of sections of an establishment](https://ksandk.com/labour-employment/layoff-retrenchment-closure-industrial-relations-code-2020/);
- Termination of employment and notice requirements;
- Suspension or dismissal for misconduct, including the acts or omissions constituting misconduct; and
- Means of redress against unfair treatment or wrongful exactions by the employer or its agents.

The appropriate Government may also prescribe additional matters for inclusion in Standing Orders.

Standing Orders therefore serve as the formal framework governing important aspects of the employment relationship. Their relevance extends beyond routine human resource administration. Questions concerning the classification of a worker, the validity of disciplinary action, the procedure for suspension or dismissal, and the applicability of particular service conditions may depend on the Standing Orders governing the establishment.

## 2. Applicability: Which Establishments Are Required to Have Standing Orders?

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 12 months. This represents a significant change from the Industrial Employment (Standing Orders) Act, 1946, under which the threshold was generally 100 workers, subject to the applicable statutory and governmental provisions.

The relevant threshold is determined by reference to the number of workers employed on any day during the preceding 12 months. Accordingly, an employer cannot determine applicability solely by referring to the workforce strength on the date of assessment.

### Exempt establishments

Section 28(2) excludes industrial 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. The appropriate Government may also notify other rules or regulations for this purpose.

Consequently, employers should assess both the workforce threshold and the nature of the establishment and applicable service regulations before determining their obligations under Chapter IV.

## 3. Model Standing Orders and Establishment-Specific Standing Orders

Section 29 of the IR Code empowers the Central Government to formulate Model Standing Orders relating to conditions of service and matters incidental or connected thereto.

Pursuant to this provision, the Central Government notified the Model Standing Orders, 2026, on 8 May 2026. These provide separate schedules for:

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

The sector-specific structure recognises that employment conditions and operational requirements may differ across industries.

The Model Standing Orders address matters such as worker classification, attendance, working hours, leave, disciplinary proceedings, misconduct and [grievance redressal](https://ksandk.com/labour-employment/gender-pay-equity-audit-code-on-wages/). They also recognise contemporary workplace 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 must be considered in light of the nature of the industrial establishment.

### Establishment-specific Standing Orders

Employers may also require provisions addressing operational requirements that are not adequately covered by the applicable Model Standing Orders. For instance, a technology-enabled service establishment may require detailed provisions concerning access to IT systems, information security, confidentiality and conduct in virtual workplaces. A manufacturing establishment may require more specific provisions governing shift arrangements, workplace safety and operational discipline.

Section 30(1) permits employers to prepare draft Standing Orders based on the Model Standing Orders, incorporating additional provisions considered necessary in view of the nature of the establishment’s activities. However, such additional provisions must not be inconsistent with the IR Code and must cover all applicable matters specified in the First Schedule. The Certifying Officer or appellate authority also examines the fairness and reasonableness of the proposed provisions, keeping the Model Standing Orders in view.

## 4. Adoption of Model Standing Orders and Deemed Certification

One of the important procedural changes under the IR Code is the introduction of deemed certification for employers adopting the Central Government’s Model Standing Orders. Under Section 30(3), where an employer adopts the Model Standing Orders of the Central Government in respect of matters relevant to its industrial establishment or undertaking, the adopted Model Standing Orders are deemed to be certified, subject to the prescribed procedure.

The employer is required to inform the concerned Certifying Officer of such adoption in the prescribed manner. Rule 10 of the Industrial Relations (Central) Rules, 2026 provides the procedure for forwarding this information. The employer must communicate the specific date from which the Model Standing Orders have been adopted. Such intimation may be made electronically, in person or by speed post.

Upon receiving the intimation, the Certifying Officer enters the relevant establishment details in the prescribed register.

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

Where no observation is made by the Certifying Officer within 30 days of receiving the intimation, the adopted Model Standing Orders are deemed to have been certified under Rule 10(5). The adopted Model Standing Orders come into force from the date specified in the employer’s intimation. This mechanism reduces the procedural burden associated with obtaining individual certification where the employer adopts the applicable Model Standing Orders without requiring establishment-specific modifications.

It is important, however, that employers identify the correct sectoral schedule and ensure that the adopted provisions adequately address the activities undertaken by the establishment.

## 5. Certification of Establishment-Specific Standing Orders

Where an employer does not adopt the Model Standing Orders and instead proposes establishment-specific provisions, the certification procedure under Section 30 applies. The procedure involves the following stages:

### Step 1: Preparation of draft Standing Orders

Under Section 30(1), the employer is required to prepare draft Standing Orders based on the applicable Model Standing Orders, covering every relevant matter specified in the First Schedule and incorporating any additional provisions considered necessary for the establishment. The draft must remain consistent with the IR Code.

### Step 2: Consultation with workers’ representatives

Section 30(2) requires the employer to consult the Trade Union, recognised negotiating union or members of the negotiating council, as applicable, before forwarding the draft to the Certifying Officer. Where there is no Trade Union operating in the establishment, the prescribed procedure for choosing worker representatives applies.

### Step 3: Submission to the Certifying Officer

The employer must forward the draft Standing Orders to the concerned Certifying Officer electronically or through any other prescribed mode. The draft must be accompanied by the prescribed statement containing details of the industrial establishment, its address, contact particulars, workforce strength and relevant Trade Union information.

### Step 4: Notice and opportunity to submit comments

Under Section 30(5) read with Rule 11 of the Industrial Relations (Central) Rules, 2026, 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, the Certifying Officer calls a meeting of workers to choose their representatives and issues the prescribed notice to them. The draft is to be made available in the language spoken and understood by the majority of the workers, and 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 received, the Certifying Officer provides the relevant worker representatives with an opportunity of being heard. The Certifying Officer then determines whether any modifications or additions are necessary to make the draft Standing Orders certifiable and passes an appropriate order in writing.

### Step 6: Certification and circulation

Once the draft is approved, the Certifying Officer certifies the Standing Orders and authenticates the copies in accordance with the applicable procedure. Under Section 30(8), authenticated copies are required to 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 electronic transmission as well as a hard copy through speed post.

## 6. The 60-Day Certification Timeline and Deemed Certification

Section 30(5) prescribes a statutory timeline for completing certification proceedings. The Certifying Officer is required to complete the certification process within 60 days from the date of receipt of the draft Standing Orders or proposed modifications, as applicable. Where the Certifying Officer fails to complete the proceedings within this period, the draft Standing Orders or modifications, as the case may be, are deemed to have been certified upon expiry of the 60-day period. This provision seeks to provide certainty to employers and workers by preventing certification proceedings from remaining indefinitely pending before the authority.

The IR Code therefore provides two distinct mechanisms for deemed certification:

1. **Adoption of Model Standing Orders:** Under Section 30(3), read with Rule 10 of the Central Rules, 2026, the applicable Model Standing Orders may be deemed certified following the prescribed intimation and 30-day scrutiny mechanism.
2. **Failure to complete certification within the prescribed period:** Under the proviso to Section 30(5), establishment-specific draft Standing Orders or modifications are deemed certified if the Certifying Officer does not complete the certification proceedings within 60 days of receipt.

These mechanisms should not be confused, as they apply to different compliance routes.

## 7. When Do Certified Standing Orders Come into Operation?

Section 33 of the IR Code specifies when certified Standing Orders or modifications become operative. Where no appeal is preferred under Section 32, the Standing Orders come into operation upon expiry of 30 days from the date on which authenticated copies are sent to the relevant parties under Section 30(8).

Where an appeal is preferred, the Standing Orders 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. Section 34 further provides for the maintenance of a register of certified Standing Orders by the Certifying Officer.

Employers must also ensure that the applicable Standing Orders are maintained and made available to workers in the prescribed languages and manner. Under Rule 16 of the Central Rules, 2026, the text must be maintained in Hindi, English and the local language, and certified Standing Orders must be displayed prominently at the industrial establishment.

## 8. Modification of Certified Standing Orders

Standing Orders are not intended to remain unchanged regardless of operational or legal developments. However, modifications cannot be introduced unilaterally or arbitrarily. Section 35 of the IR Code provides that Standing Orders cannot ordinarily be modified for six months from the date on which they, or their last modification, came into operation, unless the employer and the workers or their Trade Union or other representative body agree to such modification.

After expiry of this period, an employer, worker, Trade Union or other representative body of workers may apply to the Certifying Officer for modification of the Standing Orders. The modification procedure is substantially governed by the certification framework under Section 30, including the requirements relating to consultation, scrutiny and certification.

Under the Central Rules, an application for modification must identify the existing provisions proposed to be changed, the corresponding proposed amendments, the reasons for the changes and the relevant Trade Union particulars. The Certifying Officer must examine 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 cannot be admitted where it would have the effect of adding to, varying or contradicting the finally certified Standing Orders. This provision reinforces the importance of maintaining clear, written and legally compliant employment conditions.

## 9. Interpretation and Resolution of Disputes Relating to Standing Orders

Disputes may arise concerning the interpretation or application of certified Standing Orders, particularly where an employer and worker have differing understandings of a particular service condition. Section 37 provides a mechanism for resolving such disputes.

An employer, worker or Trade Union concerned may apply to the appropriate Tribunal having territorial jurisdiction over the industrial establishment or undertaking for a determination on the question of interpretation or application of the Standing Orders. The Tribunal is required to 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 provides a statutory mechanism for resolving disputes concerning the meaning and operation of Standing Orders rather than leaving such questions to unilateral interpretation by either party.

## 10. Disciplinary Proceedings and Subsistence Allowance

Standing Orders have particular significance in disciplinary proceedings involving allegations of misconduct. Section 38 of the IR Code prescribes the timeline for completing disciplinary investigations and enquiries where a worker has been suspended pending investigation or enquiry into complaints or charges of misconduct. Such investigation or enquiry, 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, subject to the statutory conditions.

The prescribed rates are:

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

These provisions seek to balance the employer’s ability to conduct disciplinary proceedings with the worker’s entitlement to financial support during the period of suspension.

The Model Standing Orders, 2026 also prescribe detailed disciplinary procedures and identify various forms of misconduct. Depending on the applicable sectoral schedule, these include disclosure of confidential information, submission of false reimbursement claims, unauthorised access to an employer’s or client’s IT systems and sexual harassment as defined under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The Model Standing Orders also recognise the role of the Internal Committee constituted under the POSH Act in enquiring into complaints of [sexual harassment](https://ksandk.com/labour-employment/posh-compliance-calendar-in-india/), in accordance with the applicable statutory framework. Accordingly, employers should ensure that their disciplinary policies, enquiry procedures and internal grievance mechanisms are aligned with the applicable Standing Orders and other relevant employment laws.

## 11. Consequences of Non-Compliance with Standing Orders

The IR Code prescribes financial penalties for employers who fail to comply with the statutory requirements governing Standing Orders. Section 86 provides for 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. Where the offence continues, an additional fine of ₹2,000 for every day during which the offence continues may also be imposed.

### 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) prescribes enhanced consequences where an employer, having previously been convicted of an offence under Section 86(11), commits the same offence again. Such repeat contravention 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. The penalties demonstrate that compliance is not limited to preparing and certifying Standing Orders. Employers must also ensure that their workplace practices, disciplinary actions and employment decisions remain consistent with the Standing Orders in force.

## Conclusion

The Industrial Relations Code, 2020 introduces significant changes to the framework governing Standing Orders in India. By increasing the applicability threshold to 300 workers, recognising sector-specific Model Standing Orders and introducing deemed certification, the Code seeks to simplify the regulatory process while retaining statutory safeguards governing employment conditions.

For employers, the choice between adopting the applicable Model Standing Orders and obtaining certification for establishment-specific provisions requires careful consideration of the nature of their operations and workforce requirements. While the adoption mechanism offers procedural convenience, employers proposing additional or modified provisions must ensure compliance with the certification requirements, including the standards of fairness and reasonableness.

The provisions relating to modifications, disciplinary proceedings, interpretation and penalties further underline that Standing Orders are not merely internal human resource documents. They constitute a statutory framework governing important aspects of the employment relationship.

Employers should accordingly review their existing Standing Orders, employment policies and disciplinary procedures to ensure that they remain consistent with the IR Code, the applicable Model Standing Orders and the relevant Central or State rules.

## Frequently Asked Questions

### 1. What are standing orders under the Industrial Relations Code, 2020?

Standing orders are rules that define the conditions of employment in an industrial establishment, including worker classification, working hours, shifts, attendance, leave, misconduct, suspension, termination, and grievance procedures.

### 2. Which establishments are required to have standing orders under the Industrial Relations Code, 2020?

The Industrial Relations Code, 2020 generally applies the standing-orders requirement to industrial establishments employing 300 or more workers, compared with the earlier threshold of 100 workers under the Industrial Employment (Standing Orders) Act, 1946.

### 3. What happens if an establishment has fewer than 300 workers?

Establishments below the 300-worker threshold are generally governed by the model standing orders prescribed under the applicable framework, rather than being required to obtain individually certified standing orders.

### 4. What matters are covered by standing orders under the Industrial Relations Code?

Standing orders can cover matters such as classification of workers, working hours and shifts, attendance and late-coming, holidays, leave, termination, suspension, misconduct, and other conditions of employment.

*Last Updated on 31 October, 2026*

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