#Chapter 4: The Industrial Relations Code, 2020

CHAPTER IV: STANDING ORDERS

This chapter mandates that large industrial establishments create and certify a clear, standardized set of permanent rules regarding working conditions and worker conduct.

Section 28: Application of this Chapter

This section defines the size and type of industrial establishments that must comply with the mandatory requirements of the Standing Orders chapter.

Sub-Section (1): The 300-Worker Threshold

Legal Text: 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.
Simple English: This entire chapter of rules (Standing Orders) only applies to large businesses—those that have employed 300 or more workers on any single day in the last year.
Example: A logistics company has 280 permanent workers but hired 30 temporary workers for one month in January, bringing the total to 310. Even though the temporary workers are gone, the company is now obligated to comply with the Standing Orders rules for the next year.

Sub-Section (2): Exclusions (Government Service Rules)

Legal Text: 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, Indian Railway Establishment Code or any other rules or regulations that may be notified… apply.
Simple English: Workers who are already covered by detailed, official government employment rules (like civil servants or railway employees) are exempt from this chapter’s Standing Orders. They follow their specific service codes instead.
Example: Employees working in a government mint are covered by the Civil Service Rules. They do not need a separate set of Standing Orders created and certified under this Code.

Section 29: Making of model standing orders by Central Government and temporary application

This section addresses the creation of a standard template of rules and what happens if a company hasn’t certified its own rules yet.

Sub-Section (1): Creation of Model Standing Orders

Legal Text: The Central Government shall make model standing orders relating to conditions of service and other matters incidental thereto or connected therewith.
Simple English: The Central Government will publish a ready-made, standard template for workplace rules (covering things like how many days of leave are permitted, disciplinary steps, etc.) for companies to use as a base.
Example: The Central Government publishes the “Model Standing Orders,” which sets out a default rule that an employee should receive a show-cause notice before disciplinary action is taken.

Sub-Section (2): Temporary Automatic Application

Legal Text: 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… come into operation… the model standing order… shall be deemed to be adopted in that establishment…
Simple English: Once a company hits the 300-worker threshold and is required to have Standing Orders, if it hasn’t written and certified its own custom rules yet, the government’s official Model Standing Orders automatically become the binding rules in the workplace immediately.
Example: A factory is now required to have Standing Orders. Since it has not yet completed its 60-day certification process, if an employee is late, the disciplinary procedure outlined in the government’s Model Standing Orders must be followed.

Section 30: Preparation of draft standing orders by employer and procedure for certification

This complex section details the employer’s responsibility for creating the rules and the multi-step process for getting the final, legally binding certification.

Sub-Section (1): Employer’s Duty and Deadline

Legal Text: 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… in respect of the matters specified in the First Schedule… provided such provision is not inconsistent with any of the provision of this Code and covers every matters set out in the First Schedule.
Simple English: The employer must write its own set of workplace rules within six months of the new law taking effect. The draft must:
1. Be based on the government’s model.
2. Cover all 11 mandatory topics listed in the First Schedule (e.g., classification of workers, shift working, termination).
3. Not conflict with any other part of this Code.
Example: A garment factory drafts its Standing Orders, ensuring it includes clear sections on the definition of a “permanent worker” and the procedure for seeking time off, as mandated by the First Schedule.

Sub-Section (2): Consultation and Submission

Legal Text: The employer shall consult the Trade Unions or recognised negotiating union or members of the negotiating council… in respect of the draft of the standing order and thereafter forward the draft… to the certifying officer for certification.
Simple English: Before submitting the rules to the government, the employer must discuss the draft with the official union or worker representatives. Only after this consultation is the draft sent to the government-appointed Certifying Officer.
Example: The management meets with the factory’s Sole Negotiating Union three times to get feedback on the proposed dress code policy before submitting the final draft to the Certifying Officer.

Sub-Section (3): Deemed Certification for Model Adoption

Legal Text: Where an employer adopts a model standing order… then, such model standing order shall be deemed to have been certified… and employer shall forward the information in this regard to the concerned certifying officer…
Simple English: If a company chooses to adopt the government’s Model Standing Orders without making any changes, it is considered instantly and formally certified. The employer only needs to notify the Certifying Officer of this decision.
Example: A new warehouse owner decides the government’s model rules are suitable and sends a letter to the Certifying Officer stating they are adopting the model rules entirely. The rules are now legally certified.
Proviso: 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.
- Example: The Certifying Officer checks the warehouse owner’s notification and realizes the model order needs a slight change to align with a local State Labour Board notification. The officer orders the company to make that small correction.

Sub-Section (4): Submission of Modifications

Legal Text: The employer shall prepare the draft of the modifications required in the standing order… and forward… 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.
Simple English: If a company already has certified Standing Orders and just wants to change a few rules, it only needs to submit the proposed changes (modifications), not the whole document. This must be done within six months of the chapter becoming applicable to them.
Example: A company wants to change the definition of misconduct to include misuse of social media. It drafts only the new “misconduct” clause and submits only that clause for certification.

Sub-Section (5): The Certification Review Process

Legal Text: On receipt of the drafts… the certifying officer shall: (i) issue notice to the Trade Union… for seeking their comments… and (ii) after receipt of their comments give an opportunity of being heard… and decide as to whether or not any modification or addition to such draft standing order is necessary… and shall make an order in writing in this regard.
Simple English: The Certifying Officer runs a full, fair review: they officially ask the union/workers for their feedback, hold a meeting to hear both sides (management and workers), and then issue a formal written decision on any changes needed for the rules to be certified.
Example: The Union argues in the hearing that the proposed timing for the lunch break is insufficient. The Certifying Officer agrees and issues a written order requiring the employer to extend the break time before final certification.
Proviso (Automatic Certification on Delay): The certifying officer shall complete such procedure… within a period of sixty days from the date of the receipt… failing which such draft standing orders or… modifications… shall be deemed to have been certified on the expiry of the said period of sixty days.
- Simple English: The Certifying Officer has a strict 60-day deadline to finish the review process. If they fail to issue a decision within 60 days, the rules submitted by the employer are automatically approved and certified.
- Example: The Certifying Officer receives the draft on September 1st. If they haven’t sent a final order by October 31st, the company’s submitted draft rules become the certified Standing Orders on November 1st, by default.

Sub-Section (6): Conditions for Certifiability

Legal Text: The standing orders shall be certifiable… if: (a) provision is made therein for every matter set out in the First Schedule… and (b) such orders are otherwise in conformity with the provisions of this Code.
Simple English: For the rules to be approved, two things are essential: (a) they must be complete (cover all the required topics from the First Schedule), and (b) they must be legal (not contradict any part of the Industrial Relations Code).
Example: A draft Standing Order cannot be certified if it fails to include a policy on worker classification or if it proposes a retrenchment compensation amount lower than what the Code mandates.

Sub-Section (7): Adjudication of Fairness

Legal Text: It shall be the function of the certifying officer or the appellate authority… to adjudicate upon the fairness or reasonableness of the provisions of any standing orders keeping in view the provisions of the model standing orders…
Simple English: The Certifying Officer must act as a judge, making sure the rules are fair and reasonable for the workers. They use the government’s Model Standing Orders as a benchmark to assess the company’s rules.
Example: A company drafts a rule allowing management to search an employee’s locker without cause. The Certifying Officer rules that this is unreasonable compared to the balanced approach in the Model Orders and orders the company to add a “reasonable suspicion” clause.

Sub-Section (8): Final Communication

Legal Text: The certifying officer shall certify the draft standing orders… and shall within seven days thereafter send copies of the certified standing orders… authenticated in such manner as may be prescribed, to the employer and to the negotiating union…
Simple English: Once the rules are approved (certified), the officer must immediately send official, sealed copies to both the company and the worker representatives within a week.
Example: The certification order is issued on December 5th. The Certifying Officer must ensure the official, authenticated copies are physically dispatched to the company’s CEO and the union President by December 12th.

Sub-Section (9): Required Documentation with Draft

Legal Text: The draft standing orders… shall be accompanied by a statement giving such particulars… of the workers employed in the industrial establishment, the Trade Union to which they belong, and the negotiating union or negotiating council, if any.
Simple English: The official submission of the draft rules must include a supporting document that details the total number of workers, which unions they belong to, and the identity of the primary negotiating body.
Example: The submission package includes a separate sheet stating: “Total Workers: 450. Union A members: 350. Union B members: 100. Negotiating Union: Union A.”

Sub-Section (10): Joint Drafts for Similar Establishments

Legal Text: A group of employers in similar establishments may submit a joint draft of standing orders…
Simple English: Several companies in the same type of business can save time and effort by teaming up to submit one single set of rules that will apply to all of them, provided they meet certain conditions.
Example: Three different, but small, food processing units in the same industrial park submit a single, uniform set of Standing Orders to the Certifying Officer for certification across all three units simultaneously.

Sub-Section (11): Continuity of Old Orders

Legal Text: The standing orders… 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… continue and be deemed to be the standing orders certified under sub-section (8)…
Simple English: Any workplace rules that were legally certified under the old laws remain valid under this new Code, and are automatically treated as if they were certified under this section—unless they contain a rule that directly violates the new Code.
Example: A manufacturing plant’s Standing Orders, certified in 2005, stated the retirement age was 58. Since this is not inconsistent with the new Code, that rule remains legally valid. However, if the old rule had a clause violating the new minimum wage definition, that specific clause would be void.

Section 31: Certifying officer and appellate authority to have powers of civil court

This section grants the officers handling the certification of Standing Orders special legal powers, similar to those of a regular court.

Sub-Section (1): Civil Court Powers

Legal Text: Every certifying officer and the appellate authority… 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.
Simple English: When reviewing or deciding on Standing Orders, the Certifying Officer and the Appellate Authority are given the full authority of a civil judge. They can formally swear in people, force witnesses to appear, and legally require the production of documents or evidence.
Example: During a hearing over the fairness of a proposed attendance rule, the Certifying Officer issues a subpoena forcing the employer’s HR head to attend and present internal data on past employee tardiness.

Sub-Section (2): Correction of Errors

Legal Text: 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.
Simple English: The officer who issued the final order, or the person who takes over that job later, can fix simple typos, calculation errors, or accidental omissions in the document at any time.
Example: The Certifying Officer issues the final Standing Orders, but accidentally types “7 days leave” when the approved order was “10 days leave.” The officer can later issue a corrigendum (correction) to fix this clerical error.

Section 32: Appeals

This section describes the right of appeal for any party dissatisfied with the Certifying Officer’s final decision.

Legal Text: An employer or Trade Union or the negotiating union or negotiating council, or… any union or such representative body of the workers… 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…
Simple English: If the employer or the workers’ representatives are unhappy with the Certifying Officer’s ruling (e.g., if the officer refused to certify a rule, or forced a modification), they have the right to challenge that decision. They must file this appeal with the higher-level Appellate Authority within 60 days of receiving the original order.
Example: The Certifying Officer rejects the union’s requested change to the termination procedure. The union has two months to prepare and file a formal appeal with the Appellate Authority to ask them to overrule the Certifying Officer.

Section 33: Date of operation of standing orders and its availability

This section clarifies the exact moment the new rules become legally enforceable and how they must be communicated to the workers.

Sub-Section (1): Date of Operation (When Rules Become Law)

Legal Text (No Appeal): The standing orders or modified standing orders… shall… 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…
Simple English: If no one files an appeal, the certified Standing Orders become legally binding and effective 30 days after the Certifying Officer sent the official, sealed copies to the parties.
Example: The official certified Standing Orders are sent on March 1st. If neither the employer nor the union appeals, the new rules take effect on March 31st.
Legal Text (With Appeal): …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…
Simple English: If there was an appeal, the rules (as modified or upheld by the Appellate Authority) become legally effective very quickly—just seven days after the final order from the Appellate Authority is officially sent out.
Example: The Appellate Authority issues its final ruling on June 15th, and the order is sent out on the same day. The Standing Orders (including any final changes) become enforceable on June 22nd.

Sub-Section (2): Availability and Communication of Rules

Legal Text: 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.
Simple English: The company is responsible for making sure the final, official rulebook is visible and understandable to all workers. This means providing copies in the local or primary language spoken by the workers and displaying them prominently in the workplace.
Example: In a factory where the majority of workers speak Tamil, the employer must post the certified Standing Orders on notice boards both in English and in the Tamil language.

Section 34: Register of standing orders

This section ensures that all final, certified Standing Orders are permanently recorded and accessible by the government and the public.

Legal Text: 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… and the certifying officer shall furnish a copy thereof to any person applying therefor on payment of such fee as may be prescribed.
Simple English: The Certifying Officer must keep a master copy of every set of certified rules, either in a physical register or digitally online. Anyone (including a curious competitor or a researcher) can ask for a copy of a company’s certified rules by paying a small fee.
Example: A labour law consultant wants to study the certified rules of a major IT company. They pay the prescribed fee to the Certifying Officer and receive an official copy of the Standing Orders filed in the register.

Section 35: Duration and modification of standing orders

This section addresses how long the rules remain in effect and the procedure for making changes after the initial certification.

Sub-Section (1): Minimum Duration (The “Six-Month Lock”)

Legal Text: The standing orders certified under sub-section (8) of section 30 shall not, except on an agreement between the employer and 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.
Simple English: Once a set of Standing Orders takes effect, a cooling-off period of at least six months begins. During this time, neither the employer nor the workers can unilaterally try to change the rules, unless both sides agree to the change beforehand.
Example: The Standing Orders took effect on January 1st. The employer realizes on March 1st that a rule is inconvenient and wants to change it. They must wait until July 1st before they can legally start the process to modify the rule (unless the union agrees to discuss it earlier).

Sub-Section (2): Application for Modification

Legal Text: Subject to the provisions of sub-section (1), an employer or worker or a Trade Union… may apply to the certifying officer to have the standing orders modified… 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… a certified copy of that agreement shall be filed alongwith the application.
Simple English: After the six-month lock period is over, either the employer or the workers can ask the Certifying Officer to change the rules. The request must include the exact wording of the proposed changes. If the changes are already agreed upon by both sides, a signed copy of that agreement must be submitted as proof.
Example: After eight months, the union applies for a modification to increase the paid casual leave from 5 days to 7 days. They send the request along with the precise new text for the leave clause to the Certifying Officer.

Sub-Section (3): Procedure for Modifications

Legal Text: 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.
Simple English: When applying for a change (modification), the entire formal procedure used for certifying the original rules must be followed again—including the consultation, the 60-day deadline, the hearing, and the test for fairness (as outlined in Section 30).
Example: When the union applies to modify the casual leave rule (as in the previous example), the Certifying Officer must notify the employer, hold a consultation hearing, and then decide on the fairness of the proposed 7-day leave rule within 60 days.

Section 36: Oral evidence in contradiction of standing orders not admissible

This section establishes that the final, certified workplace rules are the definitive word on employment conditions, and verbal agreements cannot override them.

Legal Text: “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.”
Simple English: Once the Standing Orders are officially approved and certified, no one can argue in court that a verbal agreement or an unwritten practice should add, change, or go against those written rules. The certified document is the only legal truth.
Example: A manager verbally promised a worker 15 paid sick days, but the certified Standing Orders clearly state only 5 are allowed. If the worker sues for the extra 10 days, the court will reject the manager’s verbal promise because it contradicts the certified Standing Orders.

Section 37: Interpretation, etc., of standing orders

This section provides the legal route for resolving disagreements over the meaning or application of a certified rule.

Legal Text: “If any question arises as to the application, or interpretation, of the standing orders… the employer or any worker or workers concerned or the Trade Union… may apply to the Tribunal… to decide the question and such Tribunal shall… decide the question and its decision shall be final and binding on the concerned employer and the workers.”
Simple English: If management and workers disagree on what a specific rule in the Standing Orders means or how it should be applied (e.g., in a disciplinary case), they must take that argument to the Tribunal for a definitive answer. The Tribunal’s decision is final and must be followed by everyone involved.
Example: The Standing Orders state that a warning notice is issued for “frequent tardiness,” but they don’t define “frequent.” The union argues it means 10 times in a month; the company argues it means 5. Either party can ask the Tribunal to formally interpret the meaning of “frequent tardiness.”

Section 38: Time-limit for completing disciplinary proceedings and liability to pay subsistence allowance

This crucial section ensures that disciplinary actions are completed quickly and that the suspended worker receives basic financial support during the inquiry period.

Sub-Section (1): Time Limit for Inquiry

Legal Text: “Where any worker is suspended by the employer pending investigation or inquiry… such investigation or inquiry… shall be completed ordinarily within a period of ninety days from the date of suspension.”
Simple English: When a company suspends a worker to investigate charges of misconduct, the entire process (investigation and formal inquiry) must generally be finished within three months of the suspension date. This stops companies from suspending workers indefinitely.
Example: A worker is suspended on April 1st for alleged theft. The company must conclude its internal inquiry and issue a final decision (e.g., dismissal or reinstatement) by June 30th.

Sub-Section (2): Mandatory Subsistence Allowance

Legal Text: The standing orders certified… shall provide that where a worker is suspended… the employer… shall pay to such worker… subsistence allowance at the rates specified in sub-section (3)… for the period during which such worker is placed under suspension…
Simple English: The company’s official workplace rules (Standing Orders) must include a provision that guarantees a suspended worker a minimum amount of pay (called a subsistence allowance) while the disciplinary inquiry is underway.
Example: A company cannot suspend a worker without pay. Its Standing Orders must contain a clause that specifies the rates of the subsistence allowance they will receive.

Sub-Section (3): Rate of Subsistence Allowance

Clause (a) (First 90 Days): “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;”
- Simple English: For the first three months of suspension, the worker must be paid an allowance equal to half ($50\%$) of their normal wages.
- Example: A worker normally earns Rs. 20,000 per month. For April, May, and June, the company must pay them a subsistence allowance of Rs. 10,000 per month.
Clause (b) (After 90 Days): “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.”
- Simple English: If the inquiry takes longer than 90 days, the allowance must be increased to three-quarters ($75\%$) of the normal wages, provided the delay is the fault of the employer, not the worker.
- Example: The inquiry is delayed past 90 days because the company failed to summon witnesses. Starting from the 91st day, the worker’s subsistence allowance must be increased from Rs. 10,000 to Rs. 15,000 per month. However, if the delay was because the worker requested several unnecessary adjournments, the rate would remain at $50\%$.

Section 39: Power to exempt

This section gives the government the authority to grant specific companies or industries a waiver from following the Standing Orders chapter.

Legal Text: “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.”
Simple English: The Central or State Government has the power to officially free certain companies (or groups of companies) from having to follow some or all of the rules in the Standing Orders chapter. This can be done with or without conditions.
Example: The State Government, intending to boost investment in a specific high-tech manufacturing zone, issues a notification that all companies in that zone are unconditionally exempt from Section 38 (the disciplinary timeline rule) for the first two years of operation.