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Industrial Employment (Standing Orders) Act, 1946

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The Industrial Employment (Standing Orders) Act, 1946 requires employers to define the terms of work in writing and make them known to workers. On 21 November 2025, the government implemented the Industrial Relations Code, 2020, which now governs standing orders. It also formally repeals the 1946 Act. Following this, on 8 May 2026, the Ministry of Labour and Employment notified the Model Standing Orders, 2026. Read on to learn what changed for employers.

What is the Industrial Standing Orders Act, 1946?

The Industrial Employment (Standing Orders) Act, 1946 is a central law on terms of work. It is often referred to as the Industrial Standing Orders Act, 1946. The law requires employers to define these terms and share them with workers. Under the Act, standing orders are rules on the matters listed in its Schedule, such as working hours, leave and misconduct. The Industrial Relations Code, 2020 repeals it, and Chapter IV of the Code now governs standing orders.

The Industrial Relations (Central) Rules, 2026 retain this list in their First Schedule, and it includes the following 11 matters:

1. Types of workers, now including fixed-term workers
2. Hours of work, holidays, pay days and wage rates
3. Shift work
4. Attendance and late coming
5. Leave and holidays
6. Conditions for entry and search procedures
7. Stoppages of work
8. Termination of employment and notice periods
9. Misconduct and its penalties
10. Redress against unfair treatment
11. Other notified matters

Key Provisions at a Glance

The IR Code and its central rules now cover the provisions of the Industrial Standing Orders Act, 1946. The table lists each provision with its source.

Applicability of Standing Orders: 100 vs 300 Workers

Previously, the Industrial Standing Orders Act, 1946 applied to units with 100 or more workers. Now, Section 28 of the IR Code increases this threshold to 300 workers.

• Under the Industrial Standing Orders Act, 1946: The law covered any unit with 100 workers on any day in the past year. The government could extend it to smaller units after two months’ notice.
• Under the IR Code: The standing order rules apply where a unit has, or has had in the past 12 months, 300 or more workers.
• Definition of ‘Worker’ and Exclusions: The Code’s definition of a worker excludes persons employed mainly in managerial or administrative roles. It also excludes persons employed in a supervisory capacity who draw wages of more than ₹18,000 per month, or a higher amount as may be notified by the Central Government.
• Model orders: The 2026 model orders apply only to workers as defined by the Code.

Industrial Standing Orders Act, 1946: Timeline from 1946 to 2026

Parliament amended the Industrial Standing Orders Act, 1946 several times before the IR Code replaced it. The table lists the key changes.

Model Standing Orders vs Certified Standing Orders

Model standing orders are templates that the Central Government notifies under the Code. Certified standing orders are an employer’s own orders that a certifying officer approves. The table compares both.

To adopt the model orders, notify the certifying officer online of the date from which they will apply. Adopted orders then apply to all units of the establishment, wherever they are. Orders certified under the Industrial Standing Orders Act, 1946 remain valid under the Code, as long as they agree with it.

How the IR Code 2020 Changed Standing Orders

The IR Code, 2020 changes three aspects of the Industrial Standing Orders Act, 1946:

• The legal basis and the date of effect,
• The rules and model orders that apply, and
• The time limits for certification and appeals.

Repeal of the Industrial Standing Orders Act, 1946

Section 104 of the IR Code repeals the Industrial Employment (Standing Orders) Act, 1946, alongside the Industrial Disputes Act, 1947, and the Trade Unions Act, 1926. A government notification brought the whole Code into force on 21 November 2025. Actions taken under the old laws remain valid, as long as they do not conflict with the Code.

Industrial Relations (Central) Rules and Model Standing Orders, 2026

The Central Government notified the Industrial Relations Rules and Model Standing Orders, 2026 on 8 May 2026. Both took effect from the date of publication and replaced the earlier central rules. They set out the procedures and workplace requirements under the Industrial Relations Code, including standing orders, employment conditions, and worker discipline.

These rules apply to establishments where the Central Government is the appropriate government. State Governments may frame separate rules for establishments under their jurisdiction.

Certification and Appeal Timelines

Under Section 30 of the Code, employers get six months to prepare and submit draft standing orders. The certifying officer then has 60 days to decide. If the officer does not decide in that time, the draft is deemed certified. You should receive authenticated copies within seven days. The orders take effect 30 days after the copies are sent, unless someone files an appeal. The Code allows 60 days from the date of the officer’s order to file that appeal.

Summary of Changes to Standing Orders under IR Code

Model Standing Orders, 2026 for each Sector

The Model Standing Orders, 2026 provide a separate schedule for each sector. The table compares them with the model under the Industrial Standing Orders Act, 1946.

Mines Sector (Schedule A)

The Mines Sector Standing Orders, 2026 apply to mining units. Employers must pay rail or bus fare to workers who travel home on leave. A worker qualifies for this allowance after at least 240 days of attendance in the previous 12 months.

Manufacturing Sector (Schedule B)

The Manufacturing Sector Standing Orders, 2026 retain the core provisions regarding probation periods and shift modification notices. A substitute worker (badli) qualifies for permanent status upon completing one year of continuous service or 240 days of attendance.

Service Sector (Schedule C)

The Service Sector Standing Orders, 2026 apply to service units and include a specific rule for the IT sector.

Worker Types and Employment

Schedule C recognizes seven worker categories, including fixed-term and casual workers. Probation is six months, with a possible three-month extension. Fixed-term employees become eligible for gratuity after one year, and expiry of the contract is not treated as retrenchment.

Remote Work and Records

Work from home is permitted where provided for in the employment terms or an agreement. Employers should reflect applicable arrangements in their working hour policy and employee attendance policy. Service records may be maintained electronically, while wages must be paid through bank credit or cheque.

Misconduct

The 2026 model expands misconduct provisions to cover areas such as unauthorized access to IT systems and sexual harassment, with defined procedures for disciplinary action and appeals.

How to Certify Standing Orders: Step-By-Step Process

Getting standing orders certified under the IR Code involves eight steps.

1. Headcount verification: Confirm that you have employed 300 or more workers, either now or in the past year.
2. Drafting or Adoption: Prepare and submit draft standing orders within 6 months, or adopt the model standing orders instead.
3. Union Consultation: The Code requires you to consult the trade union or negotiating union first.
4. Filing: The rules require you to file a signed statement of worker details with the draft.
5. Inviting Employee Comments: If there is no union, workers choose representatives, who get 15 days to comment.
6. Certification Decision: The officer decides within 60 days, or the Code deems the draft certified.
7. Appeal Window: Any aggrieved party can file an appeal within 60 days. Otherwise, the orders take effect in 30 days.
8. Display and Publication: Show the text in all three languages on a board near the main entrance.

Penalties for Non-Compliance under Section 86

The Industrial Relations Code, 2020 increases the penalties for violations relating to standing orders compared with the earlier Industrial Employment (Standing Orders) Act, 1946.

The Code also allows you to settle certain fine-only offenses by paying a compounded amount, subject to prescribed conditions.

Employer Compliance Checklist for Standing Orders

Under the IR Code and the 2026 model orders, employers must complete the following eight statutory compliance tasks for standing orders.

• Adoption notice: Notify the certifying officer online regarding the official date of adoption.
• Transfer policy: You need a written policy, and its details must be on your HR portal.
• ID cards: Every worker needs a personal ID card with a recent photo.
• Wages: Pay by bank credit or cheque, as the model orders require.
• Service certificate: A worker who leaves must receive it within 10 days.
• Internal Committee (IC): Set up an IC under the POSH Act. It must submit an annual report to the employer and the District Officer.
• Grievance Redressal Committee: The Code requires one in every unit with 20 or more workers.
• Display: Keep the orders on the notice board and HR portal in all three languages.

How HR Software Supports Standing Orders Compliance

HR software can help employers organize records, policies, and employee information needed to support compliance with standing orders.

• Centralize policies: Store workplace policies and standing orders in one place for employees.
• Manage attendance: Track employee attendance through integrated attendance systems.
• Manage leave: Configure leave policies and approval workflows according to organizational requirements.
• Maintain employee records: Keep employment and policy-related records organized for easy access and review.

Frequently Asked Questions

Do Establishments with Fewer than 300 Workers Need Standing Orders?

No. The IR Code’s standing order rules apply only to establishments that employed 300 or more workers in the past 12 months. However, the Code still requires a Grievance Redressal Committee in any unit with 20 or more workers.

Are Orders Certified under the Industrial Standing Orders Act, 1946 Still Valid?

Yes, in most cases. The IR Code treats standing orders certified under the old Act as if they were certified under the Code. This applies only where they agree with the Code and its rules. Any conflicting clause must be changed through the certifying officer.

Is Work from Home Covered in the Model Standing Orders, 2026?

Yes, for the service sector. The service sector schedule allows an employer to permit work from home and other remote work. This depends on the terms of hire or an agreement with the worker. The mines and manufacturing schedules contain no such clause.

What Subsistence Allowance is Due during Suspension?

The IR Code requires a subsistence allowance of 50% of wages for the first 90 days of suspension. After that, the rate increases to 75% if the worker did not cause the delay. The model orders also bar the worker from taking other jobs during suspension.

Can an Employer Modify Certified Standing Orders?

Yes, but not within 6 months of the last change. The Code allows an earlier change only if the employer and workers agree. Otherwise, either side may apply to the certifying officer. The rules ask for a table showing each change and its reason.

Where Can I Download the Model Standing Orders, 2026?

The Gazette of India published them on 8 May 2026 on egazette.gov.in. State governments frame their own rules under the IR Code, so also check your state labour department’s website.

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