The introduction of the Industrial Relations Code, 2020 marks a significant shift in India’s labour law framework, particularly with respect to Standing Orders. Standing Orders are written rules that define the terms of employment and regulate conditions of service such as classification of workers, working hours, attendance, leave, misconduct, disciplinary procedures, and termination. These rules are intended to bring clarity, uniformity, and transparency to employer–employee relations within an establishment.
Under the earlier Industrial Employment (Standing Orders) Act, 1946, the requirement to frame and certify Standing Orders applied to industrial establishments employing 100 or more workmen. However, the Industrial Relations Code, 2020 has revised this threshold. As per the new Code, Standing Orders are now mandatory for establishments employing 300 or more workers, subject to notifications issued by the respective State Governments. This change is aimed at providing greater flexibility to smaller establishments while continuing to regulate service conditions in larger organizations.
Another important development under the new labour codes is the introduction of Model Standing Orders. These Model Standing Orders have been prescribed by the Central Government and cover a wide range of service conditions, including working hours, shifts, attendance, leave entitlements, misconduct, disciplinary action, grievance redressal mechanisms, and termination procedures. If an employer does not draft and submit its own Standing Orders, the Model Standing Orders will automatically apply to the establishment once notified by the appropriate government.
For establishments that already have certified Standing Orders under the earlier law, the Industrial Relations Code provides continuity. Existing certified Standing Orders will remain in force until they are revised, modified, or replaced in accordance with the provisions of the new Code. This ensures that employers are not required to immediately overhaul their existing frameworks but are expected to align them with the new legal requirements over time.
The new framework places a greater responsibility on employers to review and assess their current compliance status. Employers with 300 or more workers must evaluate whether their existing Standing Orders are aligned with the provisions of the Industrial Relations Code, 2020 and the applicable State rules. In addition, organizations operating across multiple states must be particularly cautious, as the applicability and implementation of the Code are subject to State-specific notifications and rules.
Non-compliance with Standing Order requirements can lead to disputes, enforcement action, and challenges during labour inspections or litigation. Clearly defined and legally compliant Standing Orders play a crucial role in minimizing industrial disputes, ensuring procedural fairness, and providing a structured mechanism for disciplinary action and grievance handling.
In conclusion, the changes introduced under the Industrial Relations Code, 2020 represent a move toward modernizing labour relations while balancing employer flexibility and worker protection. Employers should proactively review their workforce strength, monitor State notifications, and take necessary steps to draft, adopt, or revise Standing Orders in line with the new legal framework. Timely compliance will help organizations maintain industrial harmony and reduce legal and operational risks under the evolving labour law regime.
