Standing orders

In short

• Standing orders are needed in every industrial establishment that employs three hundred or more workers, or did on any day of the preceding twelve months s. 28(1).
• Until your own standing orders are certified, the Model Standing Orders made by the Central Government are treated as adopted in your establishment s. 29(2).
• You can adopt the Model Standing Orders for your sector, which counts as certification; you must tell the certifying officer the date from which you adopted them s. 30(3) rule 10.
• Or you can draft your own, based on the Model Standing Orders and covering every matter in the First Schedule, and send the draft for certification s. 30(1)–(2).
• A suspended worker’s inquiry should ordinarily be completed within ninety days, and subsistence allowance is payable during suspension s. 38.

Does this apply to you?

• Yes, if you run an industrial establishment with three hundred or more workers now, or on any day of the preceding twelve months s. 28(1).
• It does not apply to workers governed by Government service rules, such as the Fundamental and Supplementary Rules or the Civil Services rules s. 28(2).
• The appropriate Government can exempt an establishment or a class of establishments by notification s. 39.

What the law requires

The Model Standing Orders

• The Central Government makes model standing orders on conditions of service s. 29(1).
• The current Model Standing Orders set out separate orders for the mining, manufacturing and service sectors, in Schedules A, B and C rule 10 order 2.
• The service sector Schedule includes an order on work from home, remote locations and virtual workplaces order 9.

Adopting the Model Standing Orders

• Adopting the Model Standing Orders for matters relevant to your establishment counts as certification s. 30(3).
• Tell the certifying officer, electronically, in person or by speed post, the date from which you have adopted them; they apply to the establishment and all its units rule 10(1)–(2).
• If your establishment does other kinds of work as well, the certifying officer may within thirty days direct you to add the relevant provisions, and you have thirty days to comply rule 10(4).
• If the certifying officer makes no observation within thirty days, the adopted orders are treated as certified rule 10(5).

Certifying your own standing orders

• Prepare a draft based on the Model Standing Orders, covering every matter in the First Schedule and anything else your establishment needs, provided it is consistent with the Code s. 30(1).
• The First Schedule includes classification of workers, hours and holidays, shift working, attendance, leave, termination and notice, misconduct, and the means of redress for unfair treatment First Schedule.
• Consult the trade unions, or the negotiating union or council, before sending the draft to the certifying officer s. 30(2).
• Send with the draft a statement of the establishment’s name, address, e-mail and contact number, the number and details of workers, and their trade unions rule 13(1).
• The certifying officer seeks the workers’ comments and must complete the process within sixty days, or the draft is treated as certified s. 30(5).
• Certified copies are sent to you and the unions within seven days of certification s. 30(8).
• Employers of similar establishments may submit a joint draft s. 30(10) rule 14.
• Standing orders that existed when the Code commenced continue, so far as they are consistent with it s. 30(11).

Appeals and when standing orders take effect

• You or a union can appeal the certifying officer’s order within sixty days of receiving it s. 32.
• Standing orders come into operation thirty days after the authenticated copies are sent, or, after an appeal, seven days after the appellate order is sent s. 33(1).

Keeping and displaying them

• Keep the text of the standing orders in Hindi, English and the local language rule 16(2).
• Display them legibly on a special board at or near the entrance most workers use; you may also post them on your website rule 16(3).

Changing them

• Standing orders cannot be modified within six months of coming into operation, except by agreement with the workers or their union s. 35(1).
• To modify them, apply to the certifying officer with the proposed changes, and a certified copy of any agreement s. 35(2).

Suspension and subsistence allowance

• When a worker is suspended pending an investigation or inquiry into misconduct, the investigation and inquiry should ordinarily be completed within ninety days of the suspension s. 38(1).
• Pay subsistence allowance at fifty per cent of the worker’s wages for the first ninety days of suspension s. 38(3)(a).
• For the rest of the suspension, pay seventy-five per cent, unless the delay is directly attributable to the worker’s conduct s. 38(3)(b).

Disputes and penalties

• A question about applying or interpreting certified standing orders can be referred to the Tribunal, whose decision is final s. 37.
• No oral evidence that adds to, varies or contradicts certified standing orders is admitted in any court s. 36.
• Failing to submit draft standing orders, or modifying them improperly, carries a fine of fifty thousand to two lakh rupees s. 86(10).
• Acting in contravention of certified standing orders carries a fine of ₹1,00,000 to ₹2,00,000 s. 86(11).

Numbers at a glance

What	Figure	Where
Workers that bring in standing orders	three hundred or more	s. 28(1)
Certifying officer’s decision on a draft	within sixty days, or deemed certified	s. 30(5)
Observation on adopted Model Standing Orders	within thirty days, or deemed certified	rule 10(5)
Appeal against certification	within sixty days	s. 32
Standing orders take effect	thirty days after copies are sent	s. 33(1)
No modification without agreement	six months	s. 35(1)
Inquiry after suspension	ordinarily within ninety days	s. 38(1)
Subsistence allowance	fifty per cent, then seventy-five per cent	s. 38(3)

Records and deadlines

• If you adopt the Model Standing Orders, tell the certifying officer the date of adoption rule 10(1).
• If you certify your own, send the draft with the statement of particulars rule 13(1).
• Display the certified standing orders near the main entrance, and keep their text in Hindi, English and the local language rule 16(2)–(3).

Not covered here

• The detail of each Model Standing Order, such as disciplinary action for misconduct in the manufacturing sector Schedule B, order 23.
• State rules, where your State Government is the appropriate Government.

In short

• Standing orders are the written rules on your conditions of service, such as your classification, hours, leave, termination and what counts as misconduct First Schedule.
• They are required where three hundred or more workers are employed s. 28(1).
• Your trade union is consulted on a draft, or, if there is none, representatives chosen by the workers s. 30(2), (5).
• If you are suspended, the inquiry should ordinarily be over within ninety days, and you are paid a subsistence allowance s. 38.

Does this apply to you?

• Yes, if you work in an industrial establishment with three hundred or more workers, now or on any day of the preceding twelve months s. 28(1).
• Not if you are covered by Government service rules s. 28(2).

What the law requires

What standing orders cover

• They must cover every matter in the First Schedule, including classification of workers, hours and holidays, shift working, attendance and late coming, leave, termination and notice, suspension or dismissal for misconduct, and the means of redress for unfair treatment First Schedule.
• Until your employer’s own standing orders are certified, the Model Standing Orders made by the Central Government apply s. 29(2).

Your say in them

• Your employer must consult the trade unions, or the negotiating union or council, on a draft s. 30(2).
• If there is no trade union, the certifying officer calls a meeting of the workers to choose representatives, who get a copy of the draft in the language most workers understand and fifteen days to comment rule 11(1).
• Your union can appeal the certifying officer’s order within sixty days s. 32.
• Once in force, standing orders cannot be changed for six months, except by agreement with the workers or their union s. 35(1).

Seeing them

• The certified standing orders must be displayed on a special board at or near the entrance most workers use rule 16(3).
• Your employer must keep the text in Hindi, English and the local language rule 16(2).

If you are suspended

• The investigation and inquiry should ordinarily be completed within ninety days of your suspension s. 38(1).
• You are paid a subsistence allowance of fifty per cent of your wages for the first ninety days s. 38(3)(a).
• For the rest of the suspension it rises to seventy-five per cent, unless the delay is directly caused by your own conduct s. 38(3)(b).

Numbers at a glance

What	Figure	Where
Workers that bring in standing orders	three hundred or more	s. 28(1)
Time to comment on a draft (no union)	fifteen days	rule 11(1)
Inquiry after suspension	ordinarily within ninety days	s. 38(1)
Subsistence allowance	fifty per cent, then seventy-five per cent	s. 38(3)

What to do if it isn’t followed

• You, your union or your employer can ask the Tribunal to decide a question about how the standing orders apply or what they mean; its decision is final s. 37.
• An employer who acts in contravention of certified standing orders can be fined ₹1,00,000 to ₹2,00,000 s. 86(11).
• No court will admit oral evidence that adds to or contradicts the certified standing orders, so rely on their written text s. 36.

Not covered here

• What counts as misconduct under the Model Standing Orders, for example in the manufacturing sector Schedule B, order 23.
• State rules, where your State Government is the appropriate Government.