flowchart LR
D[Draft submitted<br/>by employer<br/>Section 3] --> CO[Certifying officer<br/>review<br/>Section 4]
CO --> O[Objections from<br/>union / workmen<br/>Section 5]
O --> C[Certification]
C --> A[Appeal to Appellate<br/>Authority<br/>Section 6]
A --> F[Operation<br/>Section 7]
classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;
35 The Industrial Employment (Standing Orders) Act 1946: Object, Scope, Certification, Model Standing Orders, Schedule Matters, Modification, Subsistence Allowance and the IR Code 2020
35.1 Why Standing Orders?
Before 1946, terms of employment in most Indian industrial establishments were unwritten. Workers often did not know — in writing — when their shift would start, what kinds of leave they could take, what counted as misconduct, or what process applied to disciplinary action. Disputes arose simply from the ambiguity. The Industrial Employment (Standing Orders) Act 1946 required employers in larger industrial establishments to formulate, certify and display standing orders — a written code of service conditions covering classification, working hours, leave, attendance, suspension, misconduct, termination and the like.
35.2 1 · Object and Scope
TipObject and Scope
| Aspect | Detail |
|---|---|
| Year | 1946 (in force from 23 April 1946) |
| Object | To require employers in industrial establishments to define with sufficient precision the conditions of employment and to make them known to workmen |
| Extent | The whole of India |
| Original applicability threshold | Establishments employing 100 or more workmen (or, in some states, 50+) on any day during the preceding 12 months |
| Position under IR Code 2020 | Threshold raised to 300+ workers |
35.3 2 · Key Definitions — Section 2
TipSection 2 — Important Definitions
| Term | Section | Meaning |
|---|---|---|
| Standing orders | 2(g) | Rules relating to the matters set out in the Schedule to the Act |
| Industrial establishment | 2(e) | Includes factories under the Factories Act 1948, railways, and other establishments notified by the appropriate government |
| Workman | 2(i) | Any person employed in any industrial establishment to do any skilled, unskilled, manual, supervisory, technical or clerical work, with prescribed exclusions |
| Certifying officer | 2(c) | A Labour Commissioner or Regional Labour Commissioner so notified by the government |
| Appellate Authority | 2(a) | The authority appointed under Section 6 to hear appeals from certification |
35.4 3 · The Schedule — Matters to be Provided For
The Schedule to the Act lists the matters on which standing orders must be made. These are:
TipSchedule — Matters Standing Orders Must Cover
| # | Matter |
|---|---|
| 1 | Classification of workmen — permanent, temporary, apprentices, probationers, badlis (substitutes), casuals, fixed-term |
| 2 | Manner of intimating to workmen — periods and hours of work, holidays, pay-days, wage rates |
| 3 | Shift working |
| 4 | Attendance and late coming |
| 5 | Conditions of, and procedure for applying for, and grant of leave and holidays |
| 6 | Requirement to enter premises by certain gates; liability to search |
| 7 | Closing and re-opening of sections of the establishment; temporary stoppages of work; rights and liabilities flowing from such stoppage |
| 8 | Termination of employment; notice required from employer and workman |
| 9 | Suspension or dismissal for misconduct; acts or omissions constituting misconduct |
| 10 | Means of redress for workmen against unfair treatment or wrongful exactions by the employer or his agents |
| 11 | Any other matter prescribed by the appropriate government |
35.5 4 · Model Standing Orders
To assist employers and ensure a minimum baseline, the central government has framed Model Standing Orders covering all Schedule matters. Until certified standing orders are in force, the model orders apply automatically (Section 12A — inserted by 1956 amendment).
35.5.1 Classification of Workmen — Standard Categories
TipModel Standing Orders — Eight Categories
| Category | Description |
|---|---|
| Permanent | Engaged on a permanent basis; includes those satisfactorily completing probation |
| Probationer | Provisionally employed to fill a permanent vacancy |
| Badli (substitute) | Appointed in place of a permanent or probationer who is temporarily absent |
| Temporary | Engaged for work that is essentially of a temporary nature |
| Casual | Engaged on a casual or non-recurring basis |
| Apprentice | A learner; paid an allowance |
| Fixed-term employment | (Added by 2018 amendment / IR Code 2020) — engaged for a fixed period with proportionate benefits |
35.6 5 · Certification — Sections 3 to 7
35.6.1 Section 3 — Submission of Draft
Within six months from the date on which the Act becomes applicable to an industrial establishment, the employer must submit five copies of the draft standing orders to the certifying officer, together with particulars of workmen and the existing recognised union (if any).
35.6.2 Section 4 — Conditions for Certification
The certifying officer must certify standing orders if:
- They make provision for every matter set out in the Schedule applicable to the establishment.
- They are not inconsistent with the Act.
- They conform — as far as is practicable — to the model standing orders.
The certifying officer is empowered to adjudicate on the fairness or reasonableness of the provisions (added by 1956 amendment) — significantly enhancing the role of the office.
35.6.3 Section 5 — Certification Procedure
The certifying officer must:
- Forward a copy of the draft to the trade union(s) or, where there is none, to the workmen.
- Invite objections within a prescribed time (typically 15 days).
- Give the parties a reasonable opportunity to be heard.
- Decide upon the standing orders and certify them.
35.6.4 Section 6 — Appeal
Any party aggrieved by the order of the certifying officer may appeal to the Appellate Authority within 30 days. The Appellate Authority’s decision is final.
35.6.5 Section 7 — Date of Operation
Certified standing orders come into operation:
- After 30 days from the date copies are sent to the parties under Section 5(3), or
- Where an appeal is preferred, seven days from the date the order of the appellate authority is sent.
35.7 6 · Modification of Standing Orders — Section 10
Once standing orders are certified, they cannot be modified for six months from the date of operation except by agreement between the employer and the workmen / union. After six months, either party may apply to the certifying officer for modification, which then goes through a fresh certification process.
35.8 7 · Section 10A — Payment of Subsistence Allowance
Inserted by the 1982 amendment, Section 10A entitles a worker who is suspended pending enquiry to a subsistence allowance:
TipSection 10A — Subsistence Allowance
| Period of suspension | Subsistence allowance |
|---|---|
| First 90 days | 50% of wages the worker would have received but for the suspension |
| After 90 days | 75% of wages, if the delay in completing the enquiry is not attributable to the worker |
The provision provides essential income protection while the disciplinary enquiry is pending.
35.9 8 · Section 13A — Interpretation of Standing Orders
If any question arises as to the application or interpretation of a standing order certified under the Act, the employer or the workman may refer the question to a Labour Court for decision. The Labour Court’s decision is final and binding.
35.10 9 · Section 13 — Penalties
TipPenalties under Section 13
| Offence | Punishment (original Act) |
|---|---|
| Employer fails to submit draft standing orders | Fine up to Rs 5,000 + Rs 200 per day of continuing offence |
| Employer contravenes certified standing orders | Fine up to Rs 100 + Rs 25 per day of continuing offence |
Penalties have been substantially enhanced under the IR Code 2020.
35.11 10 · Other Important Sections
TipOther Provisions
| Section | Provision |
|---|---|
| Section 8 | Maintenance of register of certified standing orders by the certifying officer |
| Section 9 | Posting of standing orders in English and the language understood by the majority of workmen — at conspicuous places in the establishment |
| Section 11 | Powers of the certifying officer and the appellate authority — same as those of a civil court |
| Section 12 | Oral evidence in contradiction of standing orders not permitted |
| Section 12A | Application of model standing orders pending certification |
| Section 13B | Act not applicable to certain industrial establishments where the workmen are governed by other rules (e.g., government servants) |
| Section 14 | Power to exempt certain establishments by notification |
35.12 11 · Position under the Industrial Relations Code 2020
The IR Code 2020 subsumes the Industrial Employment (Standing Orders) Act 1946 with key changes.
TipIR Code 2020 — Standing Orders Position
| Provision | Pre-Code (ID Act / Standing Orders Act) | IR Code 2020 |
|---|---|---|
| Threshold | 100+ workmen | 300+ workmen |
| Model Standing Orders | Central government model | Central model retained; deemed applicable in absence of certified |
| Fixed-term employment | Limited statutory recognition | Formal recognition with proportionate benefits |
| Subsistence allowance | 50% / 75% (Section 10A) | Continued |
| Certification process | Sections 3-7 | Carried forward, with simpler procedure |
| Penalties | Modest | Enhanced significantly |
NotePYQ trap — Threshold raised to 300
Under the IR Code 2020, standing orders apply to establishments with 300 or more workmen — raised from the earlier 100. NTA stems pair this change with the corresponding threshold change for retrenchment / closure approval (also 300).
35.13 12 · Significance of the Act
- First statute in India to require written terms of employment in industrial establishments.
- Reduced disputes arising from ambiguity over service conditions.
- Created a certification framework that put a third-party check on employer-drafted rules.
- Provided statutory minimum standards through the model standing orders.
- Built the foundation for modern Indian labour-jurisprudence on misconduct, suspension and termination.
- Continues to operate through the IR Code 2020 with raised thresholds and enhanced fixed-term provisions.
35.14 Practice Questions
Q 01
Year
Easy
The Industrial Employment (Standing Orders) Act was passed in:
View solution
Correct Option: B
1946 — in force from 23 April 1946.
Q 02
Threshold original
Medium
The original applicability threshold of the Act was:
View solution
Correct Option: B
100+ workmen (some states extended to 50+).
Q 03
IR Code threshold
Hard
Under the IR Code 2020, standing orders apply to establishments with:
View solution
Correct Option: C
Threshold raised from 100 to 300.
Q 04
Subsistence
Medium
Under Section 10A, the subsistence allowance for the first 90 days of suspension pending enquiry is:
View solution
Correct Option: B
50% for first 90 days; 75% thereafter.
Q 05
Section 13A
Hard
Section 13A provides for reference of questions on application or interpretation of standing orders to:
View solution
Correct Option: B
Labour Court — interpretation question.
Q 06
Section 3 time
Medium
Under Section 3, draft standing orders must be submitted to the certifying officer within how many months of the Act becoming applicable?
View solution
Correct Option: B
Six months from applicability.
Q 07
Modification
Hard
Under Section 10, certified standing orders cannot be modified — except by agreement — for how long from the date of operation?
View solution
Correct Option: B
Six months — Section 10.
Q 08
Schedule item
Medium
Which is not a Schedule matter under the Act?
View solution
Correct Option: C
Bonus computation is governed by the Payment of Bonus Act 1965 — not Schedule of Standing Orders Act.
Q 09
Appeal time
Medium
An appeal against the certifying officer's order under Section 6 must be filed within:
View solution
Correct Option: C
30 days to the Appellate Authority.
Q 10
Match
Hard
Match the section with its content:
| (i) | Section 3 | (a) | Interpretation by Labour Court |
| (ii) | Section 6 | (b) | Submission of draft |
| (iii) | Section 10A | (c) | Appeal to Appellate Authority |
| (iv) | Section 13A | (d) | Subsistence allowance |
View solution
Correct Option: A
3-draft; 6-appeal; 10A-subsistence; 13A-interpretation.
Q 11
Section 12A
Hard
Pending certification, which orders automatically apply to an industrial establishment?
View solution
Correct Option: B
Model standing orders — Section 12A.
Q 12
Reasonableness
Medium
The certifying officer's power to adjudicate on the fairness or reasonableness of standing orders was added in:
View solution
Correct Option: B
1956 amendment added the fairness/reasonableness adjudication power.
Q 13
Categories
Medium
A "badli" worker is:
View solution
Correct Option: B
Badli = substitute for absent permanent / probationer.
Q 14
Fixed-term
Hard
"Fixed-term employment" was added to the model standing orders by an amendment in:
View solution
Correct Option: C
2018 — recognised statutorily; further codified under IR Code 2020.
Q 15
Schedule purpose
Easy
The Schedule to the Standing Orders Act primarily lists:
View solution
Correct Option: B
Schedule matters to be covered.
Q 16
Section 9
Medium
Section 9 requires standing orders to be posted in:
View solution
Correct Option: B
English plus local language understood by majority.
Q 17
Section 12
Hard
Section 12 of the Act provides that:
View solution
Correct Option: A
Section 12 — oral evidence excluded.
Q 18
Object
Easy
The principal object of the Standing Orders Act is to:
View solution
Correct Option: B
Statutory object — precise, communicated conditions of employment.
Q 19
Section 7
Hard
Under Section 7, certified standing orders come into operation after how many days from sending copies under Section 5(3)?
View solution
Correct Option: C
30 days; if appealed, 7 days from appellate authority's order.
Q 20
Section 13B
Hard
Section 13B exempts establishments where workmen are governed by:
View solution
Correct Option: A
Government / similar service-rule regimes exempted.
35.15 Quick Recall
ImportantQuick recall
- Industrial Employment (Standing Orders) Act 1946 — requires written standing orders in industrial establishments to define conditions of employment with precision.
- Original threshold: 100+ workmen (50+ in some states). IR Code 2020: raised to 300+ workmen.
- Schedule — eleven matters covered: classification, work-time intimation, shift working, attendance, leave/holidays, search, stoppages, termination, suspension/misconduct, redress, others.
- Model Standing Orders — central government model; applies automatically pending certification under Section 12A (1956 amendment).
- Eight categories of workmen: permanent, probationer, badli (substitute), temporary, casual, apprentice, fixed-term.
-
Certification process:
- Section 3 — draft submitted within 6 months.
- Section 4 — fairness/reasonableness adjudication (1956 amendment).
- Section 5 — objections and hearing.
- Section 6 — appeal within 30 days to Appellate Authority.
- Section 7 — operation after 30 days (7 days post-appeal).
- Section 9 — posting in English plus majority’s language.
- Section 10 — no modification for six months except by agreement.
- Section 10A (1982 amendment) — subsistence allowance: 50% for first 90 days, 75% thereafter.
- Section 12 — oral evidence excluded against standing orders.
- Section 13A — interpretation questions referred to Labour Court.
- Section 13 — penalties (enhanced by IR Code 2020).
- Section 13B — exemption for government / service-rule regimes.
- IR Code 2020 — threshold raised to 300; fixed-term employment formally recognised with proportionate benefits; penalties enhanced; framework otherwise carried forward.