Standing Orders under the Industrial Relations Code

Standing orders are the written conditions of service of an industrial establishment: classification of workers, hours, leave, misconduct, suspension and termination. Once certified, they bind both employer and workers. Chapter IV of the Industrial Relations Code replaces the Industrial Employment (Standing Orders) Act, 1946, raises the threshold for its application to 300 workers, and introduces deemed certification. This note covers when the Chapter applies, how standing orders are made and modified, the rules on suspension, and the leading cases.

1. Application and Content

• Threshold, s.28. Every industrial establishment in which 300 or more workers are or were employed on any day in the preceding twelve months. The 1946 Act applied at 100 workers, and many States had lowered it further.
• Exclusion. Establishments whose workers are governed by notified service rules, such as civil service and similar rules.
• First Schedule. Matters standing orders must cover, including classification of workers, hours and shifts, attendance and leave, termination, suspension, misconduct and the redressal of grievances.
• Model standing orders. The Central Government has made model standing orders that apply across India, removing the need for separate model orders in each State.

2. Making, Certification and Modification

Figure 1: From model standing orders to certified standing orders

• Hearing. The certifying officer gives notice to the unions or workers' representatives, invites their objections, hears both sides and decides whether modifications are needed.
• Civil court powers, s.31. Certifying officers and appellate authorities have the powers of a civil court to receive evidence, administer oaths and compel attendance.
• Oral evidence, s.36. No oral evidence contradicting the certified standing orders is admissible.
• Interpretation, s.37. Questions on the application or interpretation of certified standing orders go to the Tribunal.

3. Suspension and Subsistence Allowance

Figure 2: Section 38

4. Leading Cases

• Bagalkot Cement Co v R.K. Pathan (1963). Certified standing orders have statutory force and bind employer and workers.
• Western India Match Co v Workmen (1973). A contract inconsistent with certified standing orders cannot prevail against them.
• Glaxo Laboratories v Presiding Officer (1984). An employer can punish only for misconduct specified in the standing orders; it cannot invent new heads of misconduct.
• RSRTC v Krishna Kant (1995). Certified standing orders are statutorily imposed conditions of service, though not statutory provisions in themselves.

5. Frequently Asked Questions

To which establishments does the standing orders chapter apply?

Under section 28 of the IR Code, it applies to every industrial establishment in which 300 or more workers are employed, or were employed on any day of the preceding twelve months, except where the workers are governed by notified service rules.

What is the subsistence allowance during suspension?

Under section 38, a suspended worker is paid subsistence allowance at 50% of wages for the first ninety days and 75% thereafter, if the delay in completing the inquiry is not directly attributable to the worker. The inquiry should ordinarily be completed within ninety days.

6. Related Topics

• Topic 13: Notice of Change and Bi-partite Committees. Changing conditions of service.
• Topic 16: Lay-off, Retrenchment and Closure. Termination outside the disciplinary process.