Explore what standing orders in labour law mean, how they work, their rules, examples, and how employers can implement them correctly to stay compliant and avoid disputes in 2025. Easy-to-read guide with examples and practical tips.
Introduction
In India’s evolving industrial landscape, maintaining clarity and uniformity in employer-employee relationships is not just desirable—it is legally mandated. One of the foundational pillars enabling this is the framework of standing orders in labour law. These orders serve as a statutory bridge between organizational policies and labour rights, helping both employers and workers navigate workplace expectations, procedures, and disputes effectively.
Whether you’re an HR professional, legal consultant, or business owner, understanding standing orders is critical to ensuring compliance with Indian labour regulations and fostering harmonious industrial relations.
This guide offers a detailed overview of standing orders—covering their legal foundation, drafting procedures, components, enforcement, and updates in Indian employment law.
What are Standing Orders?
Standing orders are a set of rules which define the terms of employment and conditions of service between employers and workers. These orders act as a code of conduct for industrial establishments, offering clarity on duties, rights, and obligations. They are not mere company guidelines but have legal enforceability under specific statutes.
As defined under the Industrial Employment (Standing Orders) Act, 1946, standing orders are compulsory for certain industrial undertakings and must be certified by a designated authority to become legally valid. Once certified, they override inconsistent clauses in individual employment contracts, thereby setting a uniform standard for all employees within the establishment.
Legal Framework: The Industrial Employment (Standing Orders) Act, 1946
The legislative authority governing standing orders in India is the Industrial Employment (Standing Orders) Act, 1946, which was enacted to standardize and formalize employment terms across industries. The objective of the Act is to ensure fairness and transparency by mandating employers to clearly define key aspects of employment conditions.
Applicability of the Act
| Criteria | Details |
|---|---|
| Applicability | Applies to industrial establishments with 100 or more workmen |
| Jurisdiction | Pan-India, with some state-level amendments |
| Requirement | Mandatory to draft, submit, and certify standing orders |
| Certifying Authority | Labour Commissioner or designated certifying officers |
The Act applies not only to public and private sector entities but also to factories, mines, plantations, and other industrial establishments. With the introduction of the Industrial Relations Code, 2020, the provisions related to standing orders are gradually being consolidated, but the core requirements remain similar.
For official reference, you can access the full text of the Industrial Employment (Standing Orders) Act, 1946 on the Ministry of Labour & Employment’s website.
Objectives of the Act
The key objectives of enforcing standing orders in labour law include:
- Ensuring uniformity in service conditions for all workmen.
- Preventing arbitrary disciplinary actions and terminations.
- Enhancing industrial peace by reducing ambiguity in employer-employee relations.
- Mandating employers to maintain transparency in procedures related to leave, misconduct, and termination.
- Providing a legal framework that facilitates timely resolution of labour disputes.
Core Features of Standing Orders
Certified standing orders cover various aspects of employment. Below are some of the commonly mandated components:
| Clause Category | Description |
|---|---|
| Classification of Workmen | Definitions for permanent, temporary, apprentice, and probationary workers |
| Working Hours | Daily and weekly work hours, shift timings, breaks |
| Attendance & Leave | Rules on absenteeism, types of leave, application and approval process |
| Conduct & Discipline | Code of conduct, misconduct definitions, and penalty procedures |
| Termination & Suspension | Grounds and process for suspension, dismissal, and notice period |
| Grievance Mechanism | Steps to address employee grievances |
These categories are aligned with the Model Standing Orders published by the Government, which act as a default reference in the absence of establishment-specific certified orders.
Why Standing Orders Matter
Standing orders are not just compliance formalities; they are instrumental in defining a stable and fair workplace culture. They:
- Legally bind both employer and employee once certified.
- Prevent miscommunication or arbitrary actions.
- Serve as the first reference document during industrial disputes.
- Offer standardized redressal mechanisms for disciplinary actions.
In the absence of certified standing orders, the Model Standing Orders provided by the Central or State Governments automatically apply, ensuring that minimum standards are still maintained.
Drafting & Certification of Standing Orders: Step-by-Step Process
Establishments that fall under the purview of the Industrial Employment (Standing Orders) Act, 1946 are legally required to prepare and submit standing orders for certification. This section outlines the precise procedure to help HR departments and legal teams comply efficiently.
Step-by-Step Certification Process
| Step | Description |
|---|---|
| 1 | Draft Standing Orders as per the Model format or tailor to establishment-specific policies |
| 2 | Submit to Certifying Officer along with Form I and supporting documents |
| 3 | Display Copy on notice boards for workmen’s access |
| 4 | Certifying Officer shares copy with workers’ representatives or trade unions |
| 5 | Invite objections from employees or their unions within 15 days |
| 6 | Hearing and Modifications if objections are raised |
| 7 | Certification Order Issued and effective date assigned |
This process usually takes about 30 to 45 days from submission, depending on the complexity and whether objections are raised. Once certified, the standing orders must be displayed in both English and the local language understood by most employees.
For detailed procedural guidelines, refer to the Standing Orders Rules published by the Chief Labour Commissioner (Central).
Who Can Draft and Submit Standing Orders?
Typically, the responsibility for drafting standing orders rests with the HR or Legal Department of the establishment. The draft must adhere closely to either:
- The Model Standing Orders prescribed by the Central or State Government, or
- Custom orders aligned with the company’s unique policies, provided they comply with legal norms
Submissions must be made to the Certifying Officer, usually the Labour Commissioner or an officer appointed under the Act for the concerned region.
Key Legal Requirements for Employers
To comply with standing orders in labour law, employers must fulfill the following statutory requirements:
| Requirement | Legal Mandate |
|---|---|
| Number of Employees | 100 or more workmen |
| Language | Must be in English and local language |
| Accessibility | Copy should be displayed in a conspicuous part of the workplace |
| Periodic Updates | Orders must be updated and re-certified if major employment terms are revised |
| Penalty for Non-Compliance | Fines up to ₹5,000 for first offence, ₹200 per day for continuing default (as per latest rules) |
Employers are encouraged to stay informed of recent changes under the Industrial Relations Code, 2020, which aims to consolidate and modernize labour laws. One of the key provisions is the increased employee threshold from 100 to 300 in some states for the applicability of standing orders—a move intended to boost ease of doing business.
More insights on the labour reforms can be reviewed on the PRS Legislative Research portal.
Objections and Hearings
After the draft is submitted, the certifying officer is bound by law to:
- Circulate the draft to employee representatives
- Provide 15 days to submit objections, if any
- Conduct a formal hearing before final certification
If valid objections are raised, employers may be required to amend specific clauses to balance organizational interests with employee rights. This collaborative process ensures that standing orders reflect both legal compliance and employee welfare.
Validity & Amendments
Once certified, standing orders remain valid until they are replaced or modified with a new certified draft. Amendments can be made under the following conditions:
- Voluntary amendment by the employer
- Request by trade union or employee body
- Directive by labour authorities due to changes in law
All amendments must follow the same certification process, including submission, objection period, and final approval.
Real-World Impact of Standing Orders in Indian Workplaces
The practical importance of standing orders in labour law lies in their ability to serve as a reference document in day-to-day HR operations and legal conflict resolution. They function as a statutory code of conduct and minimize ambiguity in employer-employee relationships, particularly in industrial undertakings.
Key Practical Implications
| Area of Impact | How Standing Orders Help |
|---|---|
| Disciplinary Procedures | Define what constitutes misconduct and the procedure for inquiry and penalties |
| Employee Termination | Set clear grounds and notice period for termination |
| Grievance Redressal | Outline mechanisms for lodging complaints and seeking resolution |
| Work Timings and Shifts | Regulate working hours, holidays, and shifts |
| Transfers & Promotions | State policies on internal movements, seniority, and criteria for promotion |
| Misconduct Handling | Provide a structured framework for managing disciplinary breaches |
These provisions not only promote consistency in HR practices but also help mitigate disputes and reduce litigation.
Model vs Customized Standing Orders: Which to Choose?
Employers often struggle to decide between Model Standing Orders (issued by the government) and Customized Standing Orders tailored to their unique organizational needs. Here’s a comparison to guide better decision-making:
| Feature | Model Standing Orders | Customized Standing Orders |
|---|---|---|
| Drafting Effort | Minimal – readily available | Requires in-house/expert legal drafting |
| Legal Risk | Low – already government-approved | Medium – must ensure full compliance to avoid objections |
| Flexibility | Limited to general terms | High – can reflect organization-specific policies |
| Certifying Officer Review | Usually faster | May involve extensive back-and-forth with labour authorities |
| Suitable For | SMEs and new companies | Large or diversified industrial employers |
If a company’s policies significantly differ from the Model format, opting for customized standing orders is advisable, provided they comply with labour laws. According to Labour Bureau data, an increasing number of Indian establishments now prefer customized versions to address operational complexities.
Common Legal Disputes Arising from Standing Orders
Despite their purpose being conflict prevention, disputes around standing orders in labour law still arise due to interpretation errors or procedural lapses. Here are some frequently encountered issues:
- Unfair dismissal without adhering to disciplinary procedure
- Changes in standing orders made without certification
- Lack of clarity in misconduct definitions leading to disputes
- Language mismatch between English and vernacular copies
- Non-display of certified orders on notice boards
These issues can escalate into legal proceedings, making compliance and clarity critical.
Notable Legal Cases
- Bangalore Woollen Cotton & Silk Mills Co. Ltd. v. Workmen (AIR 1968 SC 585)
- Held that standing orders override conflicting terms in appointment letters.
- Established primacy of certified standing orders in employment matters.
- Glaxo Laboratories India Ltd. v. Labour Court, Meerut (1984)
- Reiterated that disciplinary actions must strictly adhere to procedures under certified orders.
For reference, legal judgments related to standing orders can be accessed on Indian Kanoon.
State Amendments & Variations
Labour being a concurrent subject in the Indian Constitution allows individual states to make amendments to central laws, including the Industrial Employment (Standing Orders) Act, 1946. Some of the notable state-specific variations include:
- Maharashtra: Mandates standing orders even for certain establishments below 100 workers
- Gujarat: Allows digital submission and certification in some districts
- Tamil Nadu: Prescribes stricter rules on union consultation during certification
- Delhi: Emphasizes bilingual display with periodic inspections by labour inspectors
Employers operating in multiple states must stay updated with respective local rules to ensure full compliance.
A comprehensive list of state amendments can be found on India Code.
Standing Orders under the Industrial Relations Code, 2020
With the introduction of the Industrial Relations Code, 2020, the framework governing standing orders has undergone significant transformation. This new code subsumes the Industrial Employment (Standing Orders) Act, 1946, aiming to simplify and consolidate existing labour laws in India.
The objective of the Industrial Relations Code is to create a uniform legal structure for industrial disputes, trade unions, and standing orders, while promoting ease of doing business and protecting workers’ rights.
Key Changes Introduced
| Aspect | Earlier Regime (1946 Act) | Industrial Relations Code, 2020 |
|---|---|---|
| Applicability Threshold | Establishments with ≥100 workers | Raised to ≥300 workers |
| Model Standing Orders | Prescribed by Central Government | New model standing orders issued for different sectors |
| Certification Process | Required for all applicable establishments | Optional if adopting government model without change |
| Timeline for Certification | 6 months (often delayed) | Strict timelines and deemed certification provision |
| Fixed-Term Employment Inclusion | Not explicitly covered | Clearly defined under the Code |
| Penalties for Non-Compliance | Imprisonment/fines under 1946 Act | Consolidated penalties under the Code |
These changes are part of India’s broader effort to modernize and streamline its labour regulations, in alignment with global practices. The official text of the Industrial Relations Code, 2020 is available on PRS India.
Implications of the New Threshold
One of the most debated reforms is the increase in the threshold for mandatory standing orders from 100 to 300 employees. Critics argue this may leave a large number of workers in unregulated environments without the benefit of standing orders, while supporters believe it encourages business flexibility and job creation.
Estimated Impact on Workforce
According to Labour Ministry reports, raising the threshold could exempt nearly 70% of current registered establishments from the compulsory standing order regime.
| Establishment Size | No. of Units (Approx.) | Standing Orders Required Under New Code |
|---|---|---|
| 1–99 employees | 1.6 million | Not required |
| 100–299 employees | 250,000 | Not required |
| 300+ employees | 80,000 | Required |
This shift puts the onus on mid-sized employers to voluntarily adopt model standing orders or face workplace disputes without legal protection.
Sector-Wise Model Standing Orders
To simplify implementation, the Ministry of Labour released sector-specific model standing orders in 2021. These are pre-approved templates, designed for:
- Manufacturing Sector
- Mining Sector
- Service Sector (including IT/ITES)
Each model order specifies employment terms suited to its sector, such as shift policies, disciplinary guidelines, and remote work provisions (in the case of IT).
These sectoral templates reduce compliance burden and promote standardized practices. The latest sector-wise model standing orders can be accessed via the Labour Ministry’s Gazette portal.
Certification and Appeal Process under the New Code
The certification process under the Industrial Relations Code has been simplified with the aim of improving timeliness and transparency.
Steps Involved:
- Draft Submission: Employer submits draft standing orders (if not using model orders).
- Union/Worker Objection Period: 15 days provided to registered trade unions for feedback.
- Certifying Officer Review: Evaluates for legality and fairness.
- Deemed Certification: If no action is taken within 60 days, the draft is deemed approved.
- Appeal Provision: Available to both employer and trade union before the Appellate Authority.
This system ensures balance between labour rights and ease of doing business, aligning with the Code’s broader objectives.
How to Draft and Implement Standing Orders
Drafting effective standing orders in labour law is not just about compliance; it’s a strategic tool to create a transparent and harmonious work environment. Whether you’re a new employer, HR professional, or trade union representative, understanding how to draft and implement standing orders is essential.
Essential Components of Standing Orders
As per the Model Standing Orders Rules, the following key matters must be addressed:
- Classification of workmen (permanent, probationer, temporary, apprentice, etc.)
- Hours of work, shifts, and weekly holidays
- Leave policy and rules for granting leave
- Conditions for termination and notice period
- Disciplinary actions and misconduct definitions
- Procedures for suspension and dismissal
- Attendance rules and late-coming policies
- Grievance redressal mechanism
These elements must be framed clearly and unambiguously to prevent future disputes. You can refer to Rule 3 of the Industrial Employment (Standing Orders) Central Rules for the complete list of topics required in standing orders.
Drafting Checklist for Employers
To ensure your draft aligns with statutory and operational needs, use the following checklist:
| Drafting Element | Must-Have? | Remarks |
|---|---|---|
| Language Clarity | Yes | Use simple English or regional language |
| Sector-Specific Customizations | Optional | Only if deviating from the model template |
| Legal Compliance with Applicable Acts | Yes | Align with Code and state-specific laws |
| Consultation with Trade Unions | Recommended | Builds trust and reduces chances of conflict |
| Inclusion of Remote Work Provisions | Optional | Especially for IT/ITES and hybrid setups |
| Timely Submission to Certifying Officer | Mandatory | Must be filed before implementation |
Following this approach enhances the document’s validity, reduces back-and-forth with authorities, and ensures smoother certification.
Submission and Certification Process
Once the draft standing orders are prepared, the following process is followed for certification:
- Submission to Certifying Officer under the Regional Labour Commissioner’s office.
- Notice Issued to Workers/Union for suggestions or objections (15-day window).
- Hearing Conducted, if objections are raised.
- Certification Issued within 60 days.
- Deemed Approval, if no action is taken within the stipulated time.
A detailed guide is also available in Section 30–35 of the Industrial Relations Code, outlining procedural steps, powers of certifying officers, and appellate procedures.
Voluntary Adoption of Model Standing Orders
Establishments can choose to voluntarily adopt the model standing orders notified by the Central Government. If adopted without modifications, they are deemed certified and require no further approval.
However, if even a minor clause is changed (e.g., adding a custom grievance redressal cell), the entire document must go through the full certification process. Therefore, businesses looking to avoid procedural delays often choose complete adoption of the model orders, especially in the manufacturing and IT sectors.
Challenges in Implementation
Despite being mandatory in applicable establishments, standing orders often face resistance or non-compliance due to:
- Lack of awareness among employers
- Resource constraints in smaller companies
- Complexity in legal drafting
- Reluctance to involve unions
- Delays in obtaining certification
The Labour Bureau’s compliance audits have shown that nearly 45% of eligible firms either had uncertified orders or outdated documents. Employers are advised to regularly update their standing orders in line with evolving labour codes to ensure legal defensibility and internal transparency.
Questions on Standing Orders
Understanding the practical aspects of standing orders in labour law often leads to a number of recurring questions from HR professionals, business owners, and employees. Here’s a detailed FAQ section addressing real-world concerns with relevant legal references and clarity.
1. Who needs to follow the Standing Orders Act?
All industrial establishments employing 300 or more workmen (as per the threshold under the Industrial Relations Code, 2020) are mandatorily required to prepare and certify standing orders. Establishments below this threshold may adopt them voluntarily.
Note: The older threshold was 100 workers under the Industrial Employment (Standing Orders) Act, 1946, but the Industrial Relations Code, 2020 has revised it.
Refer to Section 29 of the Industrial Relations Code, 2020 for legal backing on applicability.
2. Are standing orders different from HR policies?
Yes, standing orders are statutory documents certified by a designated Labour Authority, whereas HR policies are internal guidelines that are not legally binding unless made part of the employment contract.
| Comparison Area | Standing Orders | HR Policies |
|---|---|---|
| Legal Status | Legally mandated and enforceable | Advisory unless contractual |
| Authority | Certified by Labour Department | Created by HR internally |
| Scope | Covers minimum employment conditions | May cover benefits, training, etc. |
| Modification | Requires re-certification | Can be changed internally |
This distinction is critical. HR policies cannot override the conditions mentioned in certified standing orders.
3. Can employers modify standing orders?
Yes, but any modification must be certified through the same legal process as the original draft. Employers must submit an application for modification to the Certifying Officer, and employees or unions will have an opportunity to raise objections.
The modified orders come into effect only after certification. For guidance, refer to the Standing Orders Central Rules, particularly Rule 10, which outlines the modification procedure.
4. What happens if an employer does not comply?
Non-compliance can result in:
- Legal action and penalties under the Industrial Relations Code.
- Lack of legal standing in disputes related to termination, misconduct, etc.
- Higher chances of industrial unrest or litigation.
Under Section 99 of the Code, failure to submit or implement standing orders can attract penalties up to ₹1 lakh, and an additional ₹2,000 per day for continuing non-compliance.
5. Are model standing orders available in regional languages?
Yes, most states provide translated versions of model standing orders. For example, the Maharashtra Labour Department has Marathi versions available for download. This makes it easier for establishments to ensure clarity for all employees.
However, even in regional versions, English remains the preferred language for submission and certification in most states unless explicitly allowed.
6. Do startups and MSMEs need standing orders?
While MSMEs with fewer than 300 workers are not mandated to certify standing orders, they are encouraged to adopt voluntary internal codes of conduct aligned with the model standing orders. Doing so improves clarity, especially as teams grow.
Some state governments like Tamil Nadu and Karnataka offer startup-friendly labour compliance guidelines, which include simplified frameworks for HR and standing order alignment. For reference, check out the Startup India official site for MSME-friendly policies.
Best Practices for Employers to Implement Standing Orders Effectively
Ensuring compliance with standing orders in labour law is not just about drafting the document—it’s about building a system of consistent enforcement, transparency, and awareness among employees. Below are essential best practices every employer should consider:
1. Start with the Model Standing Orders
Always begin by referencing the Model Standing Orders issued by the Central Government or your respective state. These serve as the default if the employer has not framed certified standing orders and are considered legally binding.
Employers can refer to the latest Model Standing Orders for Service Sector, released under the Industrial Relations Code, 2020, which provides a contemporary framework including clauses for remote work, digital attendance, and more.
2. Involve Workers’ Representatives
While drafting or modifying standing orders, always consult with:
- Trade unions (if present)
- Worker welfare committees
- Employee councils
This promotes industrial harmony and increases acceptance during the certification process. Additionally, it minimizes objections or disputes during certification before the Certifying Officer.
Technology Integration for Easy Implementation
Modern organizations can integrate their standing orders into HR tech platforms or employee self-service portals, ensuring they are:
- Digitally accessible
- Trackable (read receipts, policy acceptance logs)
- Auto-updated upon changes or modifications
Many enterprises now use tools such as Document Management Systems (DMS) or policy automation software that allow standing orders to be a part of onboarding modules, internal communication flows, and compliance audits.
| Feature | Benefit |
|---|---|
| Digital Acknowledgement Logs | Proof of employee receipt and acceptance |
| Version Control & Update Alerts | Maintains updated records post modification |
| Audit Trail | Ensures transparency during inspections |
These measures help during government inspections and when presenting evidence in legal disputes or labour tribunals.
Common Pitfalls to Avoid
Employers often face issues not because they lack standing orders, but due to incorrect drafting or weak implementation. Avoid these common mistakes:
- Copy-pasting model standing orders without tailoring them to your business.
- Failing to communicate certified standing orders to all employees.
- Not keeping records of modifications and employee acknowledgments.
- Treating standing orders as static documents—they must evolve with the workplace.
- Ignoring the timeline for submission or modification, resulting in legal penalties.
According to Labour and Employment Guidelines by PIB, digital transformation and proactive employer participation are vital for improved industrial relations and compliance.
Final Thoughts
Standing orders are not just a legal formality, but a foundational part of transparent employment practices. They provide:
- Legal protection to both employers and employees
- Clear rules and consistency in the workplace
- A benchmark for fair disciplinary action
- Reduced scope for conflicts and disputes
In a dynamic workplace landscape where remote work, gig economy, and flexible roles are becoming mainstream, it is crucial that companies revisit and update their standing orders in line with modern needs.
Employers who proactively implement and communicate these statutory codes of conduct are better positioned to attract and retain talent, pass inspections, and maintain industrial peace.
FAQ
What are standing orders in labour law?
Standing orders are written rules made by employers that define work conditions, employee conduct, leave, discipline, and termination.
Are standing orders legally binding in India?
Yes, certified standing orders under the Industrial Employment Act or the Industrial Relations Code are legally binding for employers and employees.
Who approves the standing orders?
A Certifying Officer under the labour department examines and approves standing orders after hearing objections from workers or unions.
Are all companies required to have standing orders?
It is mandatory for companies with 300 or more workers. Others may follow model standing orders provided by the government.
Can standing orders be changed later?
Yes, employers can modify them by following proper legal procedures and getting approval from the Certifying Officer.
What is the difference between model and certified standing orders?
Model standing orders are government-prepared default rules. Certified standing orders are customized and approved for a specific company.
Do startups need standing orders?
Startups with fewer than 300 workers are not legally required to have certified standing orders but can follow model standing orders for compliance.
What happens if standing orders are not followed?
Not following standing orders can lead to legal disputes, fines, and penalties under labour laws and industrial codes.