In a workplace, clarity about roles, responsibilities, and conduct is essential.
To ensure this, Indian labour law mandates "Standing Orders" — a legal document
that defines employment conditions. Both employers and employees thrive in an
environment where rules of engagement are well-defined and legally sound. This
is precisely where Model Standing Orders and their certification come into play.
Often perceived as mere bureaucratic formalities, they are, in reality, the
bedrock of a harmonious and productive workplace.
But what exactly are Model
Standing Orders, and why must they be certified? This blog delves into the
concept of model standing orders and their certification, explaining why they
are indispensable for every workplace. It also offers a comparative analysis of
the framework under the Industrial Employment (Standing Orders) Act, 1946, and
the Industrial Relations Code, 2020, to show how India's labour landscape is
shifting toward greater clarity and compliance.
Standing Orders
Standing Orders are written rules that define the terms and conditions of employment in industrial establishments.
As per Section 2(g) of the Act, they encompass matters listed in the Schedule, including:
- Classification of workmen (e.g., permanent, temporary, apprentice)
- Working hours, holidays, and leave policies
- Procedures for termination and disciplinary actions
- Grievance redressal mechanisms
There are two types of standing orders:
- Model Standing Orders: Prescribed by the government, applicable by default unless the employer frames and gets custom orders certified.
- Certified Standing Orders: Customized by an employer and approved through a formal certification process involving employee consultation.
These orders aim to ensure uniformity and fairness in employment practices, reducing ambiguities and potential disputes between employers and employees.
Model Standing Orders: An Overview
Model Standing Orders are pre-drafted employment rules issued by the Central Government under the framework of labour laws to ensure a standardized approach to workplace conduct across industries. These orders serve as a baseline code of conduct for employers and workers, covering areas like working hours, wage payment, leave policies, misconduct, termination, and grievance mechanisms.
Under the Industrial Employment (Standing Orders) Act, 1946, Model Standing Orders were applicable provisionally until an employer's own standing orders were certified. Employers were obligated to draft and certify their own orders, although the model versions acted as temporary defaults. With the introduction of the Industrial Relations Code, 2020, the role of Model Standing Orders has shifted significantly. Now, employers can directly adopt the Model Standing Orders without going through the certification process. Once adopted, they are deemed certified by law, offering a simplified and efficient compliance path—especially beneficial for startups, MSMEs, and new-age sectors like IT and gig-based platforms.
Moreover, the government has introduced sector-specific Model Standing Orders, reflecting modern workplace realities such as remote work, digital attendance, and flexible timings, making them more adaptable and inclusive than their earlier versions.
Certification of Standing Orders
Certification of standing orders is the formal process through which an employer's draft standing orders, whether custom-written or based on the model, are reviewed and approved by the Certifying Officer. This ensures that the terms and conditions of employment are consistent with the legal requirements and protect both the rights of workers and the interests of employers. Certification provides legal validity to the standing orders, making them binding on both parties.
Process of Certification
- Drafting: The employer prepares a set of standing orders, which include provisions on important matters like working hours, pay structure, leave policies, misconduct, and disciplinary procedures.
- Submission: The employer submits the draft standing orders to the Certifying Officer within a specified timeframe (under the 1946 Act, this had to be done within six months of applicability).
- Consultation: In case of a custom draft, trade unions or worker representatives are consulted to ensure their concerns are addressed. Workers can raise objections, and the employer may have to revise the draft to reflect these concerns.
- Review & Approval: The Certifying Officer examines the draft for consistency with the applicable laws, especially concerning workers' rights. If the draft complies, it is certified and becomes legally binding.
- Appeals: If either the employer or the workers disagree with the certified standing orders, they may file an appeal with the Appellate Tribunal for further review.
Certification Under the 2020 Code:
- Employers can now directly adopt Model Standing Orders for their establishment, and these are deemed certified once they are adopted. No formal submission or certification process is required for model orders.
- If an employer opts to create custom standing orders, the certification must be completed by the Certifying Officer within 60 days. If not completed within this time frame, the standing orders are automatically deemed certified.
- The Certification Officer also plays a role in resolving disputes related to the standing orders and can modify or refuse certification if necessary.
Importance of Certification
- Legal Compliance: Certification ensures that the terms of employment align with the provisions of labour laws, safeguarding both the employer and the employees.
- Conflict Reduction: Certified standing orders offer clarity on workplace rules, reducing the chances of misunderstandings and disputes.
- Worker Protection: Certification ensures that employees are treated fairly, with transparent terms and conditions that define their rights and responsibilities.
- Employer Assurance: Employers are assured that the operational guidelines are legally sound and can avoid litigation related to employment disputes.
Why Every Workplace Needs Model Standing Orders and Certification
Standing Orders serve as the backbone of workplace governance, offering a structured and standardized approach to managing employee relations, workplace behaviour, and operational efficiency. Regardless of the size or nature of the business, having clear and legally compliant standing orders is crucial for any workplace. Here's why every workplace needs them:
- Legal Compliance: One of the primary reasons workplaces need standing orders is to ensure compliance with labour laws. In India, the Industrial Employment (Standing Orders) Act, 1946 mandates that certain establishments must draft and certify their standing orders. Even under the Industrial Relations Code, 2020, workplaces must adopt either model or custom standing orders to comply with legal standards. Standing orders help avoid legal disputes by clearly defining terms of employment, which align with the statutory requirements.
- Clear Guidelines for Employees: Standing orders provide clear, written guidelines on important aspects such as working hours, wage structures, leave policies, and disciplinary actions. This transparency ensures that employees understand their rights and responsibilities, reducing confusion and misunderstandings. With clear rules in place, workers know exactly what is expected of them and how any breaches will be handled, fostering a sense of fairness and order.
- Minimizing Disputes and Conflicts: By outlining the processes for grievance redressal, misconduct, terminations, and leave applications, standing orders serve as a preventive tool against workplace disputes. When employees are aware of the procedures to follow for conflict resolution, they are more likely to approach issues constructively, rather than resorting to legal or industrial action.
- Consistency in Employee Treatment: Standing orders ensure that employees are treated consistently and equally. They prevent the arbitrary application of rules and ensure that all workers are subject to the same standards. This fosters a positive work culture, where employees feel valued and treated with fairness, thus boosting morale and productivity.
- Efficient HR Management: For employers, standing orders help streamline human resource management. They provide a framework for handling various HR-related processes such as hiring, promotions, attendance, and termination. Having these guidelines in place minimizes ambiguity, which leads to more efficient and effective management practices.
- Protection of Worker Rights: Standing orders play a critical role in protecting worker rights. They typically include provisions on job security, equal treatment, and non-discriminatory practices, which safeguard employees from exploitation. For example, clear misconduct definitions help prevent wrongful terminations and protect workers from arbitrary actions by management.
- Enhancing Organizational Reputation: Employers who implement and maintain certified standing orders send a strong message about their commitment to fairness and legality. This enhances the company's reputation among employees, potential hires, investors, and customers. A transparent, compliant workplace is more likely to attract top talent and retain skilled workers.
- Facilitating Smooth Operations in a Growing Organization: For expanding businesses, standing orders are crucial in maintaining order and structure as the workforce grows. They provide a scalable framework that can be easily adapted to changes in operations, new roles, or shifts in labour law. As businesses scale, they ensure that every employee is governed by the same set of rules, thus reducing administrative challenges and confusion.
Comparison of Model Standing Orders: 1946 Act vs. 2020 Code
Feature |
1946 Act |
2020 Code |
Applicability Threshold |
100+ workers (could be lowered) |
300+ workers |
Adoption of Model Standing Orders |
Temporary until certified |
Deemed certified if adopted |
Certification Process |
Mandatory for all |
Only needed for custom drafts |
Industry-Specific Models |
Not available |
Available (e.g., IT, manufacturing) |
Focus Areas |
Hours, leave, misconduct, procedures |
Plus gender neutrality, digital systems, remote work |
Compliance Complexity |
High (strict timelines, formal process) |
Simplified via deemed certification |
Role of Workers in Process |
Strong (objections allowed) |
Limited in case of model orders |
Flexibility |
Rigid; even small changes needed certification |
Flexible; easy for startups/MSMEs to adopt model orders |
Digital & Transparency |
Manual process with slow resolution |
Digital filing ensures transparency and quick access |
Labour Code Integration |
Standalone law; often caused overlap issues |
Integrated with other labour codes for smooth compliance |
Conclusion
Model Standing Orders and their certification are not just legal requirements
but essential tools for fostering transparency, fairness, and order in the
workplace. They act as a binding framework that ensures both employers and
employees are aligned on expectations, responsibilities, and procedures. By
having certified standing orders, businesses create a stable, predictable
environment that benefits everyone involved. Adopting and adhering to certified
standing orders also shields organizations from legal disputes, protects worker
rights, and promotes industrial peace.
The process of certification, while formal, ensures that all terms are in line
with legal standards, contributing to a healthier and more efficient workforce.
As the dynamics of work evolve, the need for a structured approach to governance
in workplaces becomes even more critical. Standing orders are integral in
creating a legal, ethical, and organized work culture that supports both
employee well-being and organizational success.
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