Get a detailed, step-by-step guide on the certification procedure of Standing Orders under the IE(SO) Act. Learn legal steps, employer duties, and 2025 compliance updates with expert-backed resources and official links.
In India’s complex industrial environment, ensuring clarity in employer-employee relations is crucial. One of the most significant tools to achieve this is the certification of standing orders under the Industrial Employment (Standing Orders) Act, 1946. These standing orders serve as legally binding documents that define the terms of employment and service conditions within industrial establishments. Without certified standing orders, disputes may arise over work discipline, grievance redressal, leave policies, misconduct, and termination procedures.
To ensure legal compliance and maintain transparency, every industrial establishment that falls under the purview of this Act must follow a formal procedure for certification of standing orders. This step-by-step process is not merely a bureaucratic formality—it is a legal requirement, and non-compliance can attract penalties or even litigation.
In this guide, we will walk through the procedure for certification, explain the legal context, highlight compliance requirements, and help organizations streamline the process effectively.
Understanding Standing Orders and Their Importance
Standing orders are written rules that regulate the conditions of employment in industrial establishments. They cover topics like classification of workers, work hours, attendance, shift timings, leave policies, misconduct definitions, termination rules, and grievance handling mechanisms.
Legal Framework
Standing orders in India are governed by the Industrial Employment (Standing Orders) Act, 1946. According to this law:
- Every industrial establishment employing 100 or more workers (in some states, this threshold has been reduced to 50) must prepare and certify standing orders.
- Until custom standing orders are certified, Model Standing Orders provided by the Central Government apply by default.
- Once certified, these orders become binding on both employers and employees and override any contradictory clauses in appointment letters or HR manuals.
For a detailed overview of the applicability and interpretation of the Act, refer to the official bare act published by the Ministry of Labour and Employment.
Applicability of the Act: Who Must Comply?
The applicability of the Act is based primarily on the number of employees and the type of establishment. Here’s a simplified breakdown:
| Establishment Type | Applicability Threshold |
|---|---|
| Industrial Establishments (Factories, Mines, etc.) | 100 workers (central rule) |
| Establishments under State Notifications | As low as 50 in some states (e.g., Maharashtra, Gujarat) |
| New Startups or MSMEs | Exempt if under employee threshold |
Note: States may amend the applicability threshold via notifications. For example, Maharashtra has reduced the threshold to 50 workers.
Organizations employing the requisite number of workers must initiate the procedure for certification of standing orders within six months from the date on which the Act becomes applicable to them.
Why Certification Matters
Certified standing orders are not just regulatory documents—they are enforceable contracts that promote transparency, reduce conflicts, and standardize HR practices. Here’s why they matter:
- Legal Binding: Once certified, standing orders have the force of law and override contradictory terms in individual contracts.
- Dispute Minimization: Clearly defined terms help prevent disputes related to misconduct, dismissal, and leave policies.
- Compliance: Required under labour law; non-compliance can lead to legal action by employees or the Labour Commissioner.
Up next, we will dive into the step-by-step procedure for certification of standing orders, including timelines, documentation, and potential objections by trade unions or employees.
Step-by-Step Procedure for Certification of Standing Orders
The procedure for certification of standing orders is governed by the Industrial Employment (Standing Orders) Central Rules, 1946. Employers must follow this process precisely to avoid rejections or delays in certification. Below is a structured breakdown of each stage.
1. Drafting the Standing Orders
The employer must first prepare a draft of standing orders that comprehensively covers the matters listed in the Schedule of the Act. These typically include:
- Workmen classification (permanent, temporary, apprentice, probationer)
- Attendance and leave rules
- Working hours and shift patterns
- Terms for termination, suspension, and misconduct
- Procedures for disciplinary action
- Grievance redressal mechanisms
It is advisable to align the draft with the Model Standing Orders prescribed by the Central or respective State Government to improve the chances of smooth certification.
2. Submission to the Certifying Officer
Once the draft is ready, the employer must submit it in triplicate to the Certifying Officer, usually the Regional Labour Commissioner or an appointed authority. The submission must include:
- Draft Standing Orders (in triplicate)
- Statement of workers employed
- Copy of model standing orders used as reference
- Statement of service conditions
- Proof of compliance with existing labour laws
The list of Certifying Officers by region is available on the Chief Labour Commissioner (Central) official portal.
3. Notice to Workers and Trade Unions
Upon receiving the draft, the Certifying Officer sends a copy of the draft to the trade union(s) (if any) or directly to the workers’ representatives for their feedback. A notice period of 15 days is given for raising objections or suggestions.
If objections are filed, the Certifying Officer conducts a hearing, allowing both parties to present their arguments.
4. Certification by the Authority
After examining the draft and resolving objections (if any), the Certifying Officer may:
- Approve the draft as submitted
- Modify the draft and certify it with necessary changes
The certified standing orders are then authenticated and returned to the employer and the workers’ representative.
5. Final Display and Implementation
Certified standing orders must be:
- Prominently displayed in English and the language understood by a majority of workers
- Shared with all new and existing employees
- Integrated into the company’s internal HR policies and contracts
The employer is also responsible for implementing the standing orders immediately upon certification.
Process Summary Table
Here is a quick reference to the entire certification process:
| Stage | Responsibility | Timeline | Remarks |
|---|---|---|---|
| Drafting Standing Orders | Employer | Variable | Align with Model Orders |
| Submission to Certifying Officer | Employer | Within 6 months | Triplicate copies required |
| Notice to Trade Unions | Certifying Officer | 15 days | Workers may raise objections |
| Hearing (if required) | Certifying Officer | Case-by-case | Adjudication of objections |
| Certification | Certifying Officer | ~30 days | Final standing orders issued |
| Implementation & Display | Employer | Immediate | Binding on both parties |
Documents Required for Certification of Standing Orders
Accurate documentation plays a pivotal role in the procedure for certification of standing orders. Incomplete or non-compliant submissions often lead to objections, delays, or outright rejections. Below is a list of the key documents required at the time of submission:
Mandatory Documents
- Draft Standing Orders (3 copies)
- Statement of total number of workmen employed, categorized by designation or nature of work
- Certified copy of Model Standing Orders used as reference
- Statement of existing service conditions (if any)
- Certificate of registration of the establishment
- Proof of appointment of the authorized representative (in case the submission is made by someone other than the employer)
- List of recognised trade unions, if applicable
For complete and updated documentation formats, employers can refer to the Ministry of Labour & Employment portal.
Common Objections and How to Avoid Them
Even when employers follow the certification of standing orders in labour law diligently, certain issues frequently trigger objections from either trade unions or the Certifying Officer. Understanding these in advance helps in preparing a robust and defensible submission.
Typical Objections Raised
| Nature of Objection | Reason | Preventive Measure |
|---|---|---|
| Vague or ambiguous clauses | Not clearly defining terms such as misconduct or discipline | Use clear, legal language aligned with model templates |
| Non-compliance with Model Standing Orders | Deviation without justification | Provide rationale for all deviations |
| Discriminatory provisions | Unfair clauses related to caste, gender, etc. | Ensure neutrality and legal consistency |
| Incomplete classification of workmen | Missing contract workers, trainees, etc. | Classify workmen as per statutory categories |
| Conflict with existing labour laws | Contradictory or outdated clauses | Review with current laws like Industrial Relations Code |
Trade unions are well within their rights to raise objections under Section 5 of the Industrial Employment (Standing Orders) Act, which mandates a fair and participatory certification process.
Timeframe for Certification
The entire procedure for certification of standing orders typically takes about 45–60 days, assuming there are no significant objections or revisions. However, the timeline may vary depending on:
- Complexity of the draft
- Response time from trade unions
- Workload of the Certifying Officer
- Location and jurisdiction (some states process faster than others)
For instance, in states like Maharashtra and Tamil Nadu, separate state-level rules and formats apply. Employers are advised to consult the respective state labour department websites such as the Labour Department of Maharashtra for region-specific rules.
Post-Certification Compliance Obligations
Once the standing orders are certified, employers must adhere strictly to the implementation and dissemination requirements outlined under the Industrial Employment (Standing Orders) Act, 1946. Certification is not the end but rather the beginning of a legally binding relationship between employer and employees governed by these orders.
Immediate Steps After Certification
| Step | Action Required |
|---|---|
| Display of Certified Orders | Must be displayed in English and a language understood by majority of workers |
| Communication to Employees | Copy should be shared with all current employees and new joiners during onboarding |
| Integration with HR Policies | HR manuals and internal processes should reflect the standing orders |
| Filing with Authorities | One certified copy must be filed with the Labour Department |
The standing orders become operational 30 days after final certification, provided no appeal is filed. Any amendment thereafter must follow the same rigorous procedure as the original certification.
Employers must also review and update these orders periodically to align with legislative changes, especially in light of the newer labour codes like the Industrial Relations Code, 2020, which is set to subsume this Act upon full implementation. The PRS Legislative Research platform offers a comprehensive comparison between the existing and upcoming provisions.
Legal Consequences of Non-Compliance
Non-compliance with the procedure for certification of standing orders can result in legal complications, penalties, and reputational risks. Some employers mistakenly assume that Model Standing Orders are sufficient in absence of certification, but this is only a temporary provision under the law.
Legal Penalties and Risks
| Violation | Penalty/Consequence |
|---|---|
| Failure to submit standing orders | Fine up to ₹5,000 and further fine for continuing offense |
| Non-implementation of certified orders | Treated as violation of employee rights, can lead to industrial disputes |
| Unfair labour practices (ULP) due to non-certified rules | Action by trade unions under Industrial Disputes Act or Labour Court proceedings |
| Misuse of ambiguous rules | Orders struck down by court, employer loses authority in disciplinary proceedings |
There have been numerous cases where lack of certified standing orders has caused litigation. For example, in the case of Bharat Forge Ltd. vs Uttam Manohar Nakate, the Supreme Court of India held that standing orders are binding and must be strictly followed to discipline an employee. Ignoring this can render the dismissal or penalty void.
Employers should consult the Labour Law Reporter archive for real-world case references and legal interpretations.
Role of Trade Unions in the Certification Process
Trade unions are central to the certification of standing orders in labour law. They serve as a check to ensure that workers’ rights are protected and that the draft submitted by the employer does not contain prejudicial or exploitative clauses.
How Trade Unions Influence Certification
- Representation of workmen during hearings
- Filing objections to vague or anti-worker clauses
- Proposing modifications or alignment with industry practices
- Legal escalation in case of unresolved objections
If no recognized union exists, a majority of workmen can nominate representatives to review and comment on the draft. It is mandatory for the Certifying Officer to consider and hear both parties fairly before granting approval.
Amendments to Certified Standing Orders
Amending certified standing orders is a formal legal process that requires adherence to the same procedural rigor as the original certification. Employers cannot unilaterally introduce changes, even if they believe such changes are beneficial to productivity or business goals.
Procedure for Amendment
| Step | Details |
|---|---|
| Draft Amendment | Employer must prepare a modified draft with marked changes |
| Submission to Certifying Officer | Submit three copies to the jurisdictional Certifying Officer |
| Notification to Workmen/Union | Serve a copy to the trade union or workers’ representative |
| Objection Period | 15-day window for objections from employees or unions |
| Hearing and Approval | Certifying Officer conducts hearing and issues certification |
| Effective Date | 30 days post-certification or after disposal of appeal, if filed |
This amendment procedure is governed under Section 10 of the Industrial Employment (Standing Orders) Act, 1946. In case of conflict or ambiguity, the Model Standing Orders prescribed by the Ministry of Labour and Employment may serve as a reference framework.
Employers should maintain a documented trail of correspondence and approvals, as amendments are often contested in courts during disputes over working conditions or disciplinary actions.
Transition Under Industrial Relations Code, 2020
The Government of India has consolidated multiple labour laws into four comprehensive codes. Among them, the Industrial Relations Code, 2020 will replace the existing Standing Orders Act once implemented. The new Code brings critical structural changes, including coverage, procedural alterations, and compliance thresholds.
Key Differences: Old vs New Regime
| Aspect | Current Act (1946) | IR Code, 2020 |
|---|---|---|
| Applicability Threshold | 100 or more workers | 300 or more workers |
| Standing Orders Certification | Mandatory for covered establishments | Still mandatory, but threshold raised |
| Recognition of Trade Unions | Not formally defined | Provision for recognition of negotiating union |
| Penalty for Non-Compliance | Fines ranging ₹5,000 to ₹200 per day (continuing) | Increased to ₹50,000–₹2,00,000 depending on contravention |
This shift aims to promote flexibility and ease of doing business, especially for medium-sized enterprises. However, critics argue that increasing the threshold dilutes worker protections. The full text of the Industrial Relations Code, 2020 is available at India Code.
Employers must prepare for this transition by auditing existing standing orders and aligning them with upcoming legal expectations. Early compliance will ensure a smoother shift and reduce regulatory friction.
Real-Life Case Studies: Lessons from the Field
Learning from real-world scenarios helps decode how certification plays out in practice and what employers must be cautious of.
Case 1: Successful Certification – IT Sector BPO
An international BPO operating in Bengaluru with over 500 employees proactively drafted customized standing orders that accounted for night shifts, hybrid work, and harassment policy extensions. They involved their Internal Complaints Committee and HR heads in the drafting stage and conducted multiple town halls with employees before submission.
Outcome: Certification was granted within 45 days without objections, and employee satisfaction scores increased by 12% post-implementation.
Case 2: Certification Failure – Manufacturing Unit in Haryana
A mid-sized manufacturing unit submitted a draft that included excessive disciplinary clauses, no maternity provisions, and outdated leave structures. The trade union raised 14 objections, and the Certifying Officer ruled that the draft violated the spirit of the law and Model Orders.
Outcome: The employer was asked to re-draft and resubmit, delaying the entire process by 4 months and triggering a legal notice from the union.
For similar documented outcomes, explore published reports by V.V. Giri National Labour Institute which offers data-backed insights into certification trends across sectors.
Certification Checklist for Employers
Ensuring compliance with the procedure for certification of standing orders requires meticulous preparation and documentation. Below is a comprehensive checklist to streamline the process and avoid unnecessary delays:
Employer’s Standing Orders Certification Checklist
| Requirement | Status Check |
|---|---|
| Draft Standing Orders (3 copies, signed) | Prepared as per company norms |
| Reference to Model Standing Orders | Deviations justified |
| Notice to employees or registered trade union | Duly served |
| Proof of worker consultation (if applicable) | Recorded meeting minutes |
| Covering letter to Certifying Officer | Signed by authorised person |
| Company registration/license copy | Enclosed |
| Applicable fee (if prescribed by state rules) | Paid or receipt attached |
| Objection handling plan (if raised) | Legal counsel briefed |
Employers should also maintain soft and hard copies of all submissions and communication with the certifying authority. In some states, online submission facilities may be available under local Labour Management Systems. For example, employers in Maharashtra can use the MahaShram Portal for labour law-related filings.
Expert Compliance Tips for Standing Orders Certification
To avoid legal pitfalls and improve employee relations, employers must go beyond just procedural compliance. Here are actionable tips:
- Avoid Copy-Paste Drafts: Merely duplicating the Model Standing Orders without contextualization often leads to objections or outright rejections. Reflect your sector-specific practices.
- Language Clarity: Draft in plain English or Hindi (or bilingual if required by your state). Avoid legalese where not necessary.
- Consult Legal & HR Team: Certification is not a clerical task. Take guidance from both legal experts and human resources professionals familiar with your company culture.
- Document Worker Engagement: Keep a record of meetings, discussions, and feedback sessions with employees. This demonstrates transparency.
- Stay Updated with State Rules: Labour law is a concurrent subject. Some states have issued amendments, formats, or filing procedures that differ. For example, Tamil Nadu and Gujarat have modified their standing order rules to suit local contexts. Refer to the Labour Department websites of your respective states for official notifications.
- Track Appeal Deadlines: If objections are raised and certification is delayed, ensure timely filing of appeals within 30 days.
Conclusion: Be Proactive, Not Reactive
The procedure for certification of standing orders under Indian labour law is not just a compliance formality—it is a strategic exercise in defining employer-employee relationships. When done right, it protects businesses from legal disputes, fosters workplace clarity, and reinforces organizational transparency.
With the upcoming changes under the Industrial Relations Code, 2020, employers must future-proof their policies and documentation. Early preparation, correct interpretation of rules, and active engagement with the workforce will be the keys to successful standing orders certification and long-term industrial harmony.
FAQ
What are Standing Orders under the Industrial Employment Act?
Standing Orders are written rules that define working conditions, conduct, and responsibilities of employees in industrial establishments.
Is certification of Standing Orders mandatory for all employers?
Certification is mandatory for industrial establishments with 100 or more workers under the current legal framework.
What is the process to certify Standing Orders?
The employer must draft Standing Orders, consult workers or unions, and submit them to the Certifying Officer for approval and certification.
Who is the Certifying Officer?
The Certifying Officer is usually the Labour Commissioner or an officer appointed by the government to examine and certify Standing Orders.
How long does it take to get Standing Orders certified?
It may take a few weeks to several months depending on objections, hearings, and verification by the Certifying Officer.
Can employees object to the draft Standing Orders?
Yes, workers or registered trade unions have the right to file objections within 15 days of receiving the draft.
Are Model Standing Orders enough or do I need custom ones?
Model Standing Orders act as a template, but employers must tailor them to their establishment’s conditions for proper certification.
What happens if certified Standing Orders are not followed?
Non-compliance can lead to legal penalties and labour disputes. Employers must follow the certified rules strictly.