Chapter IV · Industrial Relations Code

Standing Orders

This chapter requires larger industrial establishments to have written standing orders, the formal service rules on matters such as classification of workers, leave, attendance, misconduct and termination. It sets out how the employer drafts them from the Central Government's model, how a certifying officer certifies them, when they come into force and how they can be changed. It also sets a normal 90-day target for finishing inquiries against suspended workers and the subsistence allowance owed to a worker while suspended.

12 sections ~11 min read Official text, PDF pp. 17–20

HR and IR managersOwners of factories and large establishmentsTrade union office-bearersWorkers

Key points

1The chapter applies to every industrial establishment that employs, or employed on any day of the preceding twelve months, 300 or more workers. §28
2Until an establishment's own standing orders are certified and in force, the Central Government's model standing orders are deemed to apply there. §29
3The employer drafts standing orders from the model, covering every matter in the First Schedule, consults the unions or negotiating body, and sends the draft to the certifying officer. Adopting the model counts as certification, but the employer must inform the certifying officer, who can direct changes. §30
4The certifying officer must complete the certification process within 60 days of receiving the draft, or it is deemed certified. Certified standing orders come into force 30 days after authenticated copies are sent or, if there is an appeal, 7 days after copies of the appellate order are sent. §30 §33
5Certified standing orders cannot be modified for six months from when they or their last modification came into force, unless the employer and the workers or their union agree. §35
6An inquiry against a suspended worker should ordinarily finish within 90 days of suspension. The worker gets subsistence allowance of 50% of wages for the first 90 days, and 75% after that if the delay is not directly caused by the worker's own conduct. §38

At a glance

300 or more workers (any day in the last 12 months)Chapter applies atSection 28 60 days from receiving the draft, then deemed certifiedCertifying officer's deadlineSection 30 Within 60 days of receiptAppeal against certifying officer's orderSection 32 30 days after copies are sent (7 days after the appellate order if appealed)Standing orders come into forceSection 33 Within 90 days of suspensionInquiry into a suspended worker, ordinarilySection 38 50% of wages for first 90 days, then 75% if the delay is not due to the workerSubsistence allowanceSection 38

Earlier law:Industrial Employment (Standing Orders) Act, 1946

Application of this Chapter

In plain words

The chapter applies to industrial establishments with 300 or more workers on any day of the preceding twelve months, but not to workers covered by government service rules such as the Fundamental and Supplementary Rules, Civil Services rules or the Indian Railway Establishment Code, or other rules the government notifies.

(1)

The provisions of this Chapter shall apply to every industrial establishment wherein three hundred or more than three hundred workers, are employed, or were employed on any day of the preceding twelve months.

(2)

Notwithstanding anything contained in sub-section (1), the provisions of this Chapter shall not apply to an industrial establishment in so far as the workers employed therein are persons to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence Service (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any other rules or regulations that may be notified in this behalf by the appropriate Government, apply.

Source: The Industrial Relations Code, 2020, official gazette copy, page 17

Making of model standing orders by Central Government and temporary application

In plain words

The Central Government makes model standing orders, and these are deemed adopted in an establishment from the day this chapter applies to it until its own standing orders are certified and come into force.

(1)

The Central Government shall make model standing orders relating to conditions of service and other matters incidental thereto or connected therewith.

(2)

Notwithstanding anything contained in sections 30 to 36, for the period commencing on the date on which this section becomes applicable to an industrial establishment and ending with the date on which the standing orders as finally certified under this Code come into operation under section 33 in that establishment, the model standing order referred to in sub-section (1) shall be deemed to be adopted in that establishment and the provisions of sub-section (2) of section 33 and section 35 shall apply to such model standing orders as they apply to the standing orders so certified.

Source: The Industrial Relations Code, 2020, official gazette copy, page 17

Preparation of draft standing orders by employer and procedure for certification

In plain words

Within six months of the Code coming into force, the employer prepares draft standing orders from the model, covering every First Schedule matter, consults the unions or negotiating body and sends the draft to the certifying officer. The officer hears the workers' side and must complete the process within 60 days, or the draft is deemed certified. Adopting the model counts as certification once the certifying officer is informed, though the officer can direct changes, and standing orders already in force continue as if certified so far as they fit the Code.

(1)

The employer shall prepare draft standing orders, within a period of six months from the date of commencement of this Code, based on the model standing orders referred to in section 29 in respect of the matters specified in the First Schedule and on any other matter considered necessary by him for incorporation of necessary provisions in such standing orders for his industrial establishment or undertaking, considering the nature of activity in his industrial establishment or undertaking, provided such provision is not inconsistent with any of the provision of this Code and covers every matters set out in the First Schedule.

(2)

The employer shall consult the Trade Unions or recognised negotiating union or members of the negotiating council relating to the industrial establishment or undertaking, as the case may be, in respect of the draft of the standing order and thereafter forward the draft of the standing order electronically or otherwise to the certifying officer for certification.

(3)

Where an employer adopts a model standing order of the Central Government referred to in section 29 with respect to matters relevant to his industrial establishment or undertaking, then, such model standing order shall be deemed to have been certified under the provisions of this section and employer shall forward the information in this regard to the concerned certifying officer in such manner as may be prescribed:

Proviso

Provided that if the certifying officer has any observation, he may direct such employer to amend the standing order so adopted within such period as may be prescribed.

(4)

The employer shall prepare the draft of the modifications required in the standing order, if any, in accordance with the provisions of this Code and forward electronically or otherwise to the certifying officer for certification of those modifications only within a period of six months from the date, the provisions of this Chapter becomes applicable to his industrial establishment.

(5)

On receipt of the drafts referred to in sub-section (1) and sub-section (4), the certifying officer shall issue notice to—

(i)

the Trade Union or negotiating union of the industrial establishment or undertaking, or members of the negotiating council; or

(ii)

where there is no Trade Union operating, to such representatives of the workers of the industrial establishment or undertaking chosen in such manner as may be prescribed,

for seeking their comments in the matter and after receipt of their comments give an opportunity of being heard to the negotiating union or negotiating council, or as the case may be, to the Trade Unions or the representatives of the workers and decide as to whether or not any modification or addition to such draft standing order is necessary to render the draft standing order certifiable, and shall make an order in writing in this regard:

Proviso

Provided that the certifying officer shall complete such procedure for certification referred to in sub-sections (4) and (5) in respect of—

(a)

the draft standing order so received within a period of sixty days from the date of the receipt of it; and

(b)

the draft modifications in the standing order so received within a period of sixty days from the date of the receipt of such modifications,

failing which such draft standing orders or, as the case may be, the modifications in the standing order shall be deemed to have been certified on the expiry of the said period.

(6)

The standing orders shall be certifiable under this Code, if—

(a)

provision is made therein for every matter set out in the First Schedule which is applicable to the industrial establishment; and

(b)

such orders are otherwise in conformity with the provisions of this Code.

(7)

It shall be the function of the certifying officer or the appellate authority referred to in section 32 to adjudicate upon the fairness or reasonableness of the provisions of any standing orders keeping in view the provisions of the model standing orders referred to in section 29.

(8)

The certifying officer shall certify the draft standing orders or the modifications in the standing orders referred to in sub-section (5), and shall within seven days thereafter send copies of the certified standing orders or the modifications in the standing orders, authenticated in such manner as may be prescribed, to the employer and to the negotiating union or negotiating council or the Trade Union or other representatives of the workers referred to in clause (ii) of sub-section (5).

(9)

The draft standing orders under sub-section (1) or draft of the modifications proposed in the standing orders under sub-section (5) shall be accompanied by a statement giving such particulars, as may be prescribed, of the workers employed in the industrial establishment, the Trade Union to which they belong, and the negotiating union or negotiating council, if any.

(10)

Subject to such conditions as may be prescribed, a group of employers in similar establishments may submit a joint draft of standing orders under this section and for the purposes of proceedings specified in sub-sections (1), (5), (6), (8) and (9), the expressions "employer", "Trade Union" and "negotiating union or negotiating council" shall respectively include all the employers, Trade Unions and negotiating unions or negotiating council of such similar establishments, as the case may be.

(11)

Without prejudice to the foregoing provisions of this section, the standing orders relating to an industrial establishment or undertaking existing on the date of commencement of the relevant provisions of this Code, shall, in so far as is not inconsistent with the provisions of this Code or rules made thereunder, continue and be deemed to be the standing orders certified under sub-section (8) and accordingly the provisions of this Chapter shall apply thereon.

Source: The Industrial Relations Code, 2020, official gazette copy, page 17

In plain words

For employers

Note the date the draft reaches the certifying officer; the 60-day deemed-certification clock runs from that date.

Did you know?

If the certifying officer does not complete the process within 60 days, the draft standing orders or modifications are treated as certified automatically.

Did you know?

The certifying officer, and the appellate authority on appeal, does not only check that every required matter is covered. They also judge whether the provisions are fair and reasonable, keeping the model standing orders in view.

Did you know?

A group of employers running similar establishments can file one joint draft of standing orders instead of each filing separately, subject to conditions set by rules.

Certifying officer and appellate authority to have powers of civil court

In plain words

The certifying officer and the appellate authority have the powers of a civil court to take evidence, summon witnesses and call for documents, and the certifying officer can correct clerical or arithmetical mistakes in an order at any time.

(1)

Every certifying officer and the appellate authority referred to in section 32 shall have all the powers of a civil court for the purposes of receiving evidence, administering oath, enforcing the attendance of witnesses, and compelling the discovery and production of documents, and shall be deemed to be a civil court within the meaning of sections 345 and 346 of the Code of Criminal Procedure, 1973.

(2)

Clerical or arithmetical mistakes in any order passed by a certifying officer, or errors arising therein from any accidental slip or omission may, at any time, be corrected by that officer or successor in office of such officer.

Source: The Industrial Relations Code, 2020, official gazette copy, page 19

Appeals

In plain words

An employer, union, negotiating body or workers' representatives unhappy with the certifying officer's order can appeal to the appellate authority appointed by the government within 60 days of receiving the order.

An employer or Trade Union or the negotiating union or negotiating council, or where there is no negotiating union or negotiating council in an industrial establishment or undertaking, any union or such representative body of the workers of the industrial establishment or undertaking, if not satisfied with the order of the certifying officer given under sub-section (5) of section 30, may file an appeal within sixty days of receipt of the order of the certifying officer to the appellate authority appointed by the appropriate Government, by notification, and such authority shall dispose of the appeal in such manner as may be prescribed.

Source: The Industrial Relations Code, 2020, official gazette copy, page 19

Date of operation of standing orders and its availability

In plain words

Certified standing orders come into force 30 days after authenticated copies are sent, or 7 days after copies of the appellate order are sent where there is an appeal, and the employer must keep the final text available to workers in the language and manner set by rules.

(1)

The standing orders or modified standing orders, as the case may be, shall, unless an appeal is preferred under section 32, come into operation on the expiry of thirty days from the date on which authenticated copies thereof are sent under sub-section (8) of section 30, or where an appeal as aforesaid is preferred, on the expiry of seven days from the date on which copies of the order of the appellate authority are sent in such manner as may be prescribed.

(2)

The text of a standing order as finally certified under this Code shall be maintained by the employer in such language and in such manner for the information of the concerned workers as may be prescribed.

Source: The Industrial Relations Code, 2020, official gazette copy, page 19

Register of standing orders

In plain words

The certifying officer keeps a register, physical or electronic, of all finally certified standing orders and gives a copy to anyone who applies and pays the fee set by rules.

A copy of all standing orders as finally certified under this Code shall be filed by the certifying officer in a register maintained for the purpose or uploaded in electronic form or such other form as may be prescribed, and the certifying officer shall furnish a copy thereof to any person applying therefor on payment of such fee as may be prescribed.

Source: The Industrial Relations Code, 2020, official gazette copy, page 19

Duration and modification of standing orders

In plain words

Certified standing orders cannot be changed for six months from when they or their last modification came into force, except by agreement between the employer and the workers or their union. Subject to that bar, the employer, a worker or a union can apply to the certifying officer for changes, which go through the same certification process.

(1)

The standing orders certified under sub-section (8) of section 30 shall not, except on an agreement between the employer and the workers, or a negotiating union or a Trade Union or other representative body of the workers, be liable to modification until the expiry of six months from the date on which the standing orders or the last modifications thereof came into operation.

(2)

Subject to the provisions of sub-section (1), an employer or worker or a Trade Union or other representative body of the workers may apply to the certifying officer to have the standing orders modified in such application as may be prescribed, which shall be accompanied by such copies of the modifications proposed to be made, and where the modifications are proposed to be made by agreement between the employer and the workers or a Trade Union or other representative body of the workers, a certified copy of that agreement shall be filed alongwith the application.

(3)

The foregoing provisions of this Code shall apply in respect of an application under sub-section (2) as they apply to the certification of the first time standing orders.

Source: The Industrial Relations Code, 2020, official gazette copy, page 19

Oral evidence in contradiction of standing orders not admissible

In plain words

No court will admit oral evidence that adds to, varies or contradicts standing orders as finally certified.

No oral evidence having the effect of adding to or otherwise varying or contradicting standing order as finally certified under this Chapter shall be admitted in any Court.

Source: The Industrial Relations Code, 2020, official gazette copy, page 19

Interpretation, etc., of standing orders

In plain words

Any question on how certified standing orders apply or should be read can be taken by the employer, workers or their union to the Tribunal for the area, whose decision after hearing all sides is final and binding.

If any question arises as to the application, or interpretation, of the standing orders certified under sub-section (8) of section 30 or the modification made therein by an agreement entered into under sub-section (5) of that section, the employer or any worker or workers concerned or the Trade Union in relation to the workers employed in the industrial establishment or undertaking, wherein the question has arisen, may apply to the Tribunal, within the local limits of whose territorial jurisdiction such establishment or the office, section or branch of the undertaking is situated, to decide the question and such Tribunal shall, after giving all the parties concerned a reasonable opportunity of being heard, decide the question and its decision shall be final and binding on the concerned employer and the workers.

Source: The Industrial Relations Code, 2020, official gazette copy, page 20

Time-limit for completing disciplinary proceedings and liability to pay subsistence allowance

In plain words

When a worker is suspended pending inquiry into misconduct, the investigation and inquiry should ordinarily finish within 90 days of suspension, and the standing orders must provide subsistence allowance of 50% of the wages the worker was entitled to just before suspension for the first 90 days, and 75% for the rest of the suspension if the delay is not directly due to the worker's conduct.

(1)

Where any worker is suspended by the employer pending investigation or inquiry into complaints or charges of misconduct against him, such investigation or inquiry, or where there is an investigation followed by an inquiry, both the investigation and inquiry shall be completed ordinarily within a period of ninety days from the date of suspension.

(2)

The standing orders certified under sub-section (8) of section 30 or modified under section 35 shall provide that where a worker is suspended as referred to in sub-section (1), the employer in relation to an industrial establishment or undertaking shall pay to such worker employed in such industrial establishment or undertaking subsistence allowance at the rates specified in sub-section (3) for the period during which such worker is placed under suspension pending investigation or inquiry into complaints or charges of misconduct against such worker.

(3)

The amount of subsistence allowance payable under sub-section (2) shall be —

(a)

at the rate of fifty per cent. of the wages which the worker was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and

(b)

at the rate of seventy-five per cent. of such wages for the remaining period of suspension, if the delay in the completion of disciplinary proceedings against such worker is not directly attributable to the conduct of such worker.

Source: The Industrial Relations Code, 2020, official gazette copy, page 20

Power to exempt

In plain words

The government can, by notification, exempt any industrial establishment or class of establishments from all or any part of this chapter, with or without conditions.

The appropriate Government may, by notification, exempt, conditionally or unconditionally, any industrial establishment or class of industrial establishments from all or any of the provisions of this Chapter.

Source: The Industrial Relations Code, 2020, official gazette copy, page 20

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