Law and You > Labour Laws > The Industrial Relations Code, 2020 > Standing Orders under Industrial Relations Code, 2020

During the era of laissez-faire (prior to the enactment of the “Industrial Employment (Standing Orders) Act, 1946,”) the policy of hire and fire was very common. The economic law of demand and supply in many of the cases was determining the wage rates, conditions of service, etc. The employer and the workmen used to settle the term of the contract of employment on mutual agreed terms and conditions after an individual bargain, which may be express or implied. The usual practice of the management was to enter into individual contracts with the worker with regard to his employment. In several cases, the conditions were not well defined and there was ambiguity in the conditions laid down in the contract. This resulted in a lack of uniformity in the agreement. The employer altered the conditions of the contract arbitrarily. This confused the workers because they couldn’t understand what was expected of them and what was to be followed. The employers, as well as the workmen, found themselves victims of the caprice. Therefore, the situation led to industrial unrest and created an unsatisfactory climate for good relations. In this article, we shall discuss formulation and certification of Standing Orders.

Important Definitions Related to Standing Orders:

Certifying Officer:

According to Section 2(g) of the Industrial Relations Code, 2020 “certifying officer” means any officer appointed by the appropriate Government, by notification, to perform the functions of a certifying officer under the provisions of Chapter IV (of Standing Orders).

Employer:

According to Section 2(m) of the Industrial Relations Code, 2020 “employer” means a person who employs, whether directly or through any person, or on his behalf or on behalf of any person, one or more employee or worker in his establishment and where the establishment is carried on by any department of the Central Government or the State Government, the authority specified by the head of the department in this behalf or where no authority is so specified, the head of the department, and in relation to an establishment carried on by a local authority, the chief executive of that authority, and includes,—

(i) in relation to an establishment which is a factory, the occupier of the factory as defined in clause (n) of section 2 of the Factories Act, 1948 and, where a person has been named as a manager of the factory under clause (f) of sub-section (1) of section 7 of the said Act, the person so named;

(ii) in relation to any other establishment, the person who, or the authority which has ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager or managing director, such manager or managing director;

(iii) contractor; and

(iv) legal representative of a deceased employer.

Standing Orders:

According to Section 2(zj) of the Industrial Relations Code, 2020 “standing orders” means orders relating to matters set-out in the First Schedule.

Worker:

According to Section 2(zr) of the Industrial Relations Code, 2020 “worker” means any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and includes working journalists as defined in clause (f) of section 2 of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 and sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976, and for the purposes of any proceeding under this Code in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person—

(i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or

(ii) who is employed in the police service or as an officer or other employee of a prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who is employed in a supervisory capacity drawing wages exceeding eighteen thousand rupees per month or an amount as may be notified by the Central Government from time to time:

Provided that for the purposes of Chapter III, “worker”—

(a) means all persons employed in trade or industry; and

(b) includes the worker as defined in clause (m) of section 2 of the Unorganised Workers’ Social Security Act, 2008.

Meaning of Standing Orders:

A set of models with reference to the conditions of employment, with shared consent from the business owner or employer and the labour or a social occasion of delegates or a specialists organization said as Trade Unions, appropriately approved by the reasonable government subject to pre-embraced authorizations to keep up mechanical industry harmony and understanding.

Standing Orders expresses the laws which administer the connection between the business and a labour in a modern foundation which incorporates the component, for example, grouping of labourers, working hours, participation, suspension, etc.

The Certified standing order have a statutory force. The standing order implies a contract
between the employer and the workman. Therefore, the employer and workman, cannot enter
into a contract overriding the statutory contract as embodied in the certified standing order.

In Behar Journals v. Ali Hasan, AIR 1959 Pat.431 case, where the probation period provided by the
standing order was 3 months only. But in the appointment letter of the respondent the period
of probations was six months. It was held that the certified standing orders have statutory force.
it is not possible in law for the parties to enter into contract overriding the statutory contract as
embodied in the standing orders. Therefore, probationary period in this case could not be for a
period longer than 3 months.

In Western India Match Co. V. Workmen, AIR 1973. SC 2650 case, the Supreme Court held that the standing orders imply a contract between the employer and the workmen. The certified Standing Orders have a statutory force. Therefore, the employer and the workmen cannot enter into a contract overriding the statutory contract as embodied in the certified Standing Orders framed under the Act.

Objects of the Standing Orders Act:

The objects of the Standing Orders are as follows:

• To provide regular standing orders (standardization) for factories, workers and the main professional or working relationship.
• To define, with sufficient precision, the principal conditions of employment in industrial establishments under them and to make the said conditions known to workmen employed by them.
• To regulate standards of conduct of the employers and employees so that labour-management relations could be improved.
• To maintain proper discipline, harmonious working conditions and achieve higher productivity by providing satisfactory employment and working conditions.
• To provide for redressal of grievances arising out of employment or relating to unfair treatment of wrongful exaction on the part of the employers against the employees.
• To specify the duties and responsibilities of both the employers and the employees.
• To provide statutory sanctity and importance to the Standing Orders.
• To support the promotion of industrial peace and harmony by supporting fair industrial practices.

In Re Glaxo Laboratories, 1984 I LLJ 16 case, the Supreme Court observed that the Act was meant to compel the employer, by statute, to prescribe minimum conditions of service subject to which employment is given to him.

In Salem Erode Electricity Co. Ltd. v. Employees’ Union, AIR 1966 SC 808 and Uptron India Ltd. v. Shamni Bhan, (1998) 6 SCC 538 cases, the Court observed that the object underlying the Act is to introduce uniformity of terms and conditions of employment in respect of workmen belonging to the same category and to ensure that these terms and conditions are known to employees before they accept the employment.

In Commissioner of Labour v. ACC Ltd. AIR 1955 Bom 363 case, a Division Bench of the Bombay High Court, after examining, the scope and purpose of the Act, observed that the language of the legislation makes it clear that, after the passing of the Act, every employer must make provisions for every matter embodied in the Schedule of the Act. He must also ensure that the Standing Order applicable to his employees are in conformity with the Model Standing Orders. The only deviation which is permitted is a case where conformity with the Model Standing Orders would be impracticable in the case of that particular establishment.

Matters to be Included in Standing Orders:

According to Section 2(zj) of the Industrial Relations Code, 2020 “standing orders” means orders relating to matters set-out in the First Schedule. The employer has to make a draft of standing orders for submission to the certifying officers regarding the matters prescribed in the Schedule. The matters which are referred in the Schedule are as under:

1. Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers, or badlis.
2. Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage rates.
3. Shift working.
4. Attendance and late coming.
5. Conditions of, procedure in applying for, and the authority which may grant, leave and holidays.
6. Requirement to enter premises by certain gates, and liability to search.
7. Closing and re-opening of sections of the industrial establishment, and temporary stoppages of work and the rights and liabilities of the employer and workmen arising therefrom.
8. Termination of employment, and the notice thereof to be given by employer and workmen.
9. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
10. Means of redress for workmen against unfair treatment or wrongful exactions by the
    employer or his agents or servants.
11. Anyother matter which may be prescribed.

The abovesaid items are not exhaustive. Certain items may be included whereas many other important items may be excluded.

The matters enumerated in the Schedule have been considered by the judiciary in a number of cases.  

In United Provinces Electric Supply v. T. N. Chatterjee, AIR 1972 SC 1201 case, the Supreme Court held that the termination in item 8 doesn’t cover each and every form of termination or cessation of employment. In view of this, it held that it didn’t cover superannuation which is automatic and did not require notice or any act on the part of employer or workmen. The court agreed that if the termination is to be read in a wider sense as meaning employment coming to an end, there was no necessity to have item 9 because dismissal would then be covered by termination.

The object of the provisions about Standing Orders in the Code are to give a collective voice to the workmen in defining the terms of employment which are subject to the scrutiny of quasi-judicial and judicial authorities.  

Following matter are also included in Standing Orders:

1. Service Record, that is, matters relating to service card, token tickets, certification of service, change of residential address of workmen and record of age
2. Confirmation
3. Age of retirement
4. Transfer
5. Medical aid in case of accidents
6. Medical examination
7. Secrecy
8. Exclusive service

In the case of industrial establishments in coal mines, the following additional matters are considered

1. Railway travel facilities
2. Method of filling vacancies
3. Liability of the Manager of the establishment
4. Service Certificate
5. Exhibition and supply of Standing Orders

In Sudhir Chandra Sarkar vs Tata Iron & Steel Co. Ltd. (1984) 2 LLJ 223 (SC) case, the Supreme Court has clearly stated that “the conditions of service laid down in the standing orders is either statutory in character or has statutory flavor. Similarly, certified standing orders which statutorily prescribe the conditions of service shall be deemed to be incorporated in the contract of employment of each employee with his employer.

In Rajasthan State Road Transport Corporation v. Deen Dayal Sharma, 2010 (5) SCALE 1, the Courttlaid down that: “The certified standing orders framed under and in accordance with the Industrial Employment Act (Standing Orders), 1946 are statutorily imposed conditions of service and are binding both upon the employers and employees, though they don’t amount to statutory provision. Any violation of these standing orders entitles an employee to appropriate relief either before the forums created by the Industrial Disputes Act or the civil court where recourse to civil court is open according to the principles indicated herein.”

In Jabalpur Development Authority v. Sharad Shrivastava, (2005) 1 LLJ 305 the Court observed: “The certified standing orders represent the relevant terms and conditions of service in a statutory form and they are binding on the parties at least as much, if not more, as private contract embodying similar terms and conditions of service.”

It has also been argued that standing orders are delegated legislation because the standing orders should contain every matter explained in the Schedule and it should be practicable as much as possible and should also conform to the model standing orders. The Act imposes a duty upon the employer to submit a draft to the certifying officer, who is competent to examine its fairness and reasonableness which don’t confirm that it is a delegated legislation.

In Rajasthan State Road Transport Corporation v. Krishna Kant, AIR 1955 SC 1715 case, the Supreme Court observed that the Standing Orders are binding on employer and employee. These are statutory imposed conditions of service. However, they are not statutory provisions in themselves, that is to say, even when approved, Standing Orders do not become ‘law’ in the sense in which Rules and Notifications issued under delegated legislation become after they are published in the official gazette.

In S.K. Sheshadri v. H.A.L and others, (1983) case, the Karnataka High Court held that, as long as the Standing Orders fall within the Schedule to the Act, irrespective of the fact that they contain additional provisions which are not accounted for in the MSOs, the Standing Orders would not be deemed to be invalid or ultra vires of the Act. The MSOs only serve as a model for framing the Standing Orders.

In Management of Continental Construction Ltd. v. Workmen of Continental Construction, (2003) case, the employer’s right to terminate the service of a probationer was recognised by declaring that, if a person is an employee on probation, it is an inherent power of the employer to terminate during/ at the end of the probationary period, provided, that even while acting in accordance with the CSO, the employer’s action be fair and consistent with the principles of natural justice.

In M.K.E. Association v. Industrial Tribunal AIR 1959 Mysore 235  case, the court held that the draft order to be valid, should contain every matter specified in the act, along with the additional matter prescribed by the government, applicable to the industrial/ commercial establishment.

In Sudhir Chandra Sarkar v. Tata Iron and Steel Co.Ltd. (1984) 2 LLJ 223 SC case, the supreme court has clearly stated that the conditions of service laid down in the standing orders is either statutory in character or has statutory flavour. Similarly, certified standing orders which statutorily prescribe the conditions of service shall be deemed to be incorporated in the contract of employment of each employee with his employer.

Need of Certification of Standing Orders:

The purpose of framing the Standing Orders and getting them certified by the certifying officer is that the conditions of service of employment shall be regulated by it. The Standing Orders when officially certified are binding on the employer and the employees who are at the time in the service of the employers and it is not open to them to contract themselves out of the rights and obligations created by the Standing Orders. The employer who does anything in violation of certified Standing Orders may be punished with a fine; but before he may be prosecuted for this offence, government sanction must be obtained. Further, they may not be modified except by legal process. Action taken in violation of Standing Orders may be nullified by a Labour Court. Standing Orders serve as guidelines for Labour Courts and Tribunals, for settlement of dispute.

Application of Chapter IV of Standing Orders (IRC):

According to Section 28(1) of the Industrial Relations Code, 2020 the provisions of Chapter IV of the Code shall apply to every industrial establishment wherein three hundred or more than three hundred workers, are employed, or were employed on any day of the preceding twelve months.

According to Section 28(2) of the Industrial Relations Code, 2020 notwithstanding anything contained in sub-section (1), the provisions of this Chapter shall not apply to an industrial establishment in so far as the workers employed therein are persons to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence Service (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any other rules or regulations that may be notified in this behalf by the appropriate Government, apply.

In Balakrishna Pillai v. Anant Engg. Works (P) Ltd,(1975) II LLJ 391 case, the Division Bench of the Bombay High Courtheld that once the Act becomes applicable to an industrial establishment, it does not cease to apply on account of a fall in the number of workmen in the establishment, below one hundred. Note previously as per Act, applicable at that time, limit was 100 or more than 100.

Making of Model Standing Orders by Central Government and Temporary Application:

Model Standing Orders:

According to Section 29(1) of the Industrial Relations Code, 2020 the Central Government shall make model standing orders relating to conditions of service and other matters incidental thereto or connected therewith.

Commencement and Termination of Applicability of Model Standing Orders:

According to Section 29(2) of the Industrial Relations Code, 2020 notwithstanding anything contained in sections 30 to 36, for the period commencing on the date on which this section becomes applicable to an industrial establishment and ending with the date on which the standing orders as finally certified under this Code come into operation under section 33 in that establishment, the model standing order referred to in sub-section (1) shall be deemed to be adopted in that establishment and the provisions of sub-section (2) of section 33 and section 35 shall apply to such model standing orders as they apply to the standing orders so certified.

Preparation of Draft Standing Orders by Employer and Procedure for Certification:

Preparation of Draft Standing Orders:

According to Section 30(1) of the Industrial Relations Code, 2020 the employer shall prepare draft standing orders, within a period of six months from the date of commencement of this Code, based on the model standing orders referred to in section 29 in respect of the matters specified in the First Schedule and on any other matter considered necessary by him for incorporation of necessary provisions in such standing orders for his industrial establishment or undertaking, considering the nature of activity in his industrial establishment or undertaking, provided such provision is not inconsistent with any of the provision of this Code and covers every matters set out in the First Schedule.

Within six months from the date on which this Act becomes applicable to an industrial establishment, the employer shall submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in this industrial establishment. Provision shall be made in such draft for every matter set out in the Schedule which may be applicable to the industrial establishment, and where Model standing orders have been prescribed shall be, so far as is practicable, in conformity with such model. The provisions should not be inconsistent with the Code and Model Standing Orders.

Discussion with Employee’s Forum and Forwarding for Certification:

According to Section 30(2) of the Industrial Relations Code, 2020 the employer shall consult the Trade Unions or recognised negotiating union or members of the negotiating council relating to the industrial establishment or undertaking, as the case may be, in respect of the draft of the standing order and thereafter forward the draft of the standing order electronically or otherwise to the certifying officer for certification.

The draft Standing Orders shall be accompanied by a statement giving prescribed particulars of the workmen employed, i.e., the total number, the various designations of the workmen, the total number employed in each designation, including the name of the trade union to which they belong. In case if any employer is having two industrial establishments of similar nature, it can submit a joint draft standing order.

In Hindustan Lever v. Workmen, AIR 1974 SC 17 case, where the SO made provision for transfer of an employee from one department to another of the same establishment at the discretion of the Manager provided the terms and conditions of service are not affected. There was no finding that the transfer order was malafide or vitiated by unfair labour practice. It was held that if the order of transfer is primacies valid the burden of proving that it is invalid lie on the workmen and in the absence of any finding that the transfer order was malafide or vitiated by unfair labour practice the award directing the reposting of the workman in his original department was bad.

If Employer Adopts Model Standing Order as it is:

According to Section 30(3) of the Industrial Relations Code, 2020 where an employer adopts a model standing order of the Central Government referred to in section 29 with respect to matters relevant to his industrial establishment or undertaking, then, such model standing order shall be deemed to have been certified under the provisions of this section and employer shall forward the information in this regard to the concerned certifying officer in such manner as may be prescribed:

Provided that if the certifying officer has any observation, he may direct such employer to amend the standing order so adopted within such period as may be prescribed.

The Code empowers the certifying officer or the appellate authority to enquire into the impracticability to follow the model standing order and authorises them to adjudicate upon the fairness or reasonableness of the Draft Standing Order. All these enquiries by authorities should be in an integrated manner and thus construed there will be no conflict between the two sections. Where the SO made no provision regarding age of retirement, an application by the employer for addition of a standing order providing age and ground of retirement could not be ordered as it could not be considered to be in conformity with the model standing orders.

Time Limit for Submitting Modifications in Draft Standing Orders:

According to Section 30(4) of the Industrial Relations Code, 2020 the employer shall prepare the draft of the modifications required in the standing order, if any, in accordance with the provisions of this Code and forward electronically or otherwise to the certifying officer for certification of those modifications only within a period of six months from the date, the provisions of this Chapter becomes applicable to his industrial establishment.

The appellate authority or the Certifying Officer shall see whether the standing order satisfy the conditions necessary for certification. They can make necessary additions or modifications in Draft Standing Orders submitted to them for certification so as to make the draft certifiable under the act.

Role of Certifying Officer:

According to Section 30(5) of the Industrial Relations Code, 2020 on receipt of the drafts referred to in sub-section (1) and sub-section (4), the certifying officer shall issue notice to—

(i) the Trade Union or negotiating union of the industrial establishment or undertaking, or members of the negotiating council; or

(ii) where there is no Trade Union operating, to such representatives of the workers of the industrial establishment or undertaking chosen in such manner as may be prescribed, for seeking their comments in the matter and after receipt of their comments give an opportunity of being heard to the negotiating union or negotiating council, or as the case may be, to the Trade Unions or the representatives of the workers and decide as to whether or not any modification or addition to such draft standing order is necessary to render the draft standing order certifiable, and shall make an order in writing in this regard:

Provided that the certifying officer shall complete such procedure for certification referred to in sub-sections (4) and (5) in respect of—

(a) the draft standing order so received within a period of sixty days from the date of the receipt of it; and

(b) the draft modifications in the standing order so received within a period of sixty days from the date of the receipt of such modifications, failing which such draft standing orders or, as the case may be, the modifications in the standing order shall be deemed to have been certified on the expiry of the said period.

On receipt of the draft SO, the certifying officer shall send a copy of the same to the workmen concerned (if there is no union) of the establishment or to trade union (if there is one such), with a notice inviting objections, if any, within 15 days of the receipt of the same. After giving both parties reasonable opportunity of being heard, the Certifying Officer shall decide whether or not any modification in the Draft is necessary and make an order in writing accordingly. In doing so, the Certifying Officer can adjudicate upon the fairness and reasonableness of the provisions made in the draft. The Certifying Officer shall then certify the Standing Orders with or without modifications.

Criteria for Certification of Standing Orders:

According to Section 30(6) of the Industrial Relations Code, 2020 the standing orders shall be certifiable under this Code, if—

 (a) provision is made therein for every matter set out in the First Schedule which is applicable to the industrial establishment; and

(b) such orders are otherwise in conformity with the provisions of this Code.

According to Section 30(7) of the Industrial Relations Code, 2020 it shall be the function of the certifying officer or the appellate authority referred to in section 32 to adjudicate upon the fairness or reasonableness of the provisions of any standing orders keeping in view the provisions of the model standing orders referred to in section 29.

The Certifying Officer is required to ensure that provision is made in the Standing Orders for every matter set out in the Schedule applicable to the industrial establishment and the Standing Orders are in conformity with the provisions of the Act. For this purpose, the Certifying Officer shall adjudicate upon the fairness or reasonableness of the Standing Orders.

Certification of Standing Orders:

According to Section 30(8) of the Industrial Relations Code, 2020 the certifying officer shall certify the draft standing orders or the modifications in the standing orders referred to in sub-section (5), and shall within seven days thereafter send copies of the certified standing orders or the modifications in the standing orders, authenticated in such manner as may be prescribed, to the employer and to the negotiating union or negotiating council or the Trade Union or other representatives of the workers referred to in clause (ii) of sub-section (5).

According to Section 30(9) of the Industrial Relations Code, 2020 the draft standing orders under sub-section (1) or draft of the modifications proposed in the standing orders under sub-section (5) shall be accompanied by a statement giving such particulars, as may be prescribed, of the workers employed in the industrial establishment, the Trade Union to which they belong, and the negotiating union or negotiating council, if any.

According to Section 30(10) of the Industrial Relations Code, 2020 subject to such conditions as may be prescribed, a group of employers in similar establishments may submit a joint draft of standing orders under this section and for the purposes of proceedings specified in sub-sections (1), (5), (6), (8) and (9), the expressions “employer”, “Trade Union” and “negotiating union or negotiating council” shall respectively include all the employers, Trade Unions and negotiating unions or negotiating council of such similar establishments, as the case may be.

According to Section 30(11) of the Industrial Relations Code, 2020 without prejudice to the foregoing provisions of this section, the standing orders relating to an industrial establishment or undertaking existing on the date of commencement of the relevant provisions of this Code, shall, in so far as is not inconsistent with the provisions of this Code or rules made thereunder, continue and be deemed to be the standing orders certified under sub-section (8) and accordingly the provisions of this Chapter shall apply thereon.

The certifying officer shall certify the SO and send, authenticated copies together with the orders referred to above, to the parties within 7 days from the date of his orders.

Certifying Officer and Appellate Authority to Have Powers of Civil Court:

According to Section 31(1) of the Industrial Relations Code, 2020 every certifying officer and the appellate authority referred to in section 32 shall have all the powers of a civil court for the purposes of receiving evidence, administering oath, enforcing the attendance of witnesses, and compelling the discovery and production of documents, and shall be deemed to be a civil court within the meaning of sections 345 and 346 of the Code of Criminal Procedure, 1973.

According to Section 31(2) of the Industrial Relations Code, 2020 clerical or arithmetical mistakes in any order passed by a certifying officer, or errors arising therein from any accidental slip or omission may, at any time, be corrected by that officer or successor in office of such officer.

Certifying Officers and appellate authorities have been vested with powers of Civil Courts for the purpose of receiving evidence, administering oath, enforcing the attendance of witnesses and compelling the discovery and production of documents and are deemed to be civil courts within the meaning of Sections 345 and 346 of the Code of Criminal Procedure, 1973 (2) of 1974.

Appeals:

According to Section 32 of the Industrial Relations Code, 2020 an employer or Trade Union or the negotiating union or negotiating council, or where there is no negotiating union or negotiating council in an industrial establishment or undertaking, any union or such representative body of the workers of the industrial establishment or undertaking, if not satisfied with the order of the certifying officer given under sub-section (5) of section 30, may file an appeal within sixty days of receipt of the order of the certifying officer to the appellate authority appointed by the appropriate Government, by notification, and such authority shall dispose of the appeal in such manner as may be prescribed.

Any employer, trade union or other nominated representatives, aggrieved by the order of the certifying officer, may appeal to the Appellate Authority. Such appeals are required to be filed within sixty days of the service of the Standing Orders.

• Appellate Authority: Appellate Authority appointed by the government, by the notification in the Official Gazette, to exercise power as notified in the Act.
• Power of the Appellate Authority: An Appellate Authority can either confirm the certified order or amend it, by making necessary modification thereof or addition thereto, as it think necessary. He has, however, no power to set aside the orders of certifying officer.
• Finality of the Decision of Appellate Authority: The decision of the Appellate Authority shall be final which means that there is no further appeal or revision against that order.
• Duties of the Appellate Authority: The Code has made it obligatory on part of the Appellate Authority to send copies of the orders passed by it, to the certifying officer, trade union, employer or other prescribed representative of the workmen within seven days of the date of the order, unless it has been confirmed without amendment as S.O. certified by the certifying officer.

Date of Operation of Standing Orders and its Availability:

Operation of Standing Orders:

According to Section 33(1) of the Industrial Relations Code, 2020 the standing orders or modified standing orders, as the case may be, shall, unless an appeal is preferred under section 32, come into operation on the expiry of thirty days from the date on which authenticated copies thereof are sent under sub-section (8) of section 30, or where an appeal as aforesaid is preferred, on the expiry of seven days from the date on which copies of the order of the appellate authority are sent in such manner as may be prescribed.

The Certified Standing Orders become enforceable on the expiry of 30 days from the date on which the authenticated copies of the same are sent to the parties provided no appeal has been preferred against them.

Publication of Standing Orders in Preferred Language:

According to Section 33(2) of the Industrial Relations Code, 2020 the text of a standing order as finally certified under this Code shall be maintained by the employer in such language and in such manner for the information of the concerned workers as may be prescribed.

It is a statutory obligation on the part of employer to paste the text of certified S.O. in English and the
language which is known to the majority of workers on special boards meant for the purpose at or
near entrance through which majority of workers enter the industrial establishment and all
departments where the workers are employed.

Register of Standing Orders:

According to Section 34 of the Industrial Relations Code, 2020 a copy of all standing orders as finally certified under this Code shall be filed by the certifying officer in a register maintained for the purpose or uploaded in electronic form or such other form as may be prescribed, and the certifying officer shall furnish a copy thereof to any person applying therefor on payment of such fee as may be prescribed.

Duration and Modification of Standing Orders:

According to Section 35(1) of the Industrial Relations Code, 2020 the standing orders certified under sub-section (8) of section 30 shall not, except on an agreement between the employer and the workers, or a negotiating union or a Trade Union or other representative body of the workers, be liable to modification until the expiry of six months from the date on which the standing orders or the last modifications thereof came into operation.

According to Section 35(2) of the Industrial Relations Code, 2020 subject to the provisions of sub-section (1), an employer or worker or a Trade Union or other representative body of the workers may apply to the certifying officer to have the standing orders modified in such application as may be prescribed, which shall be accompanied by such copies of the modifications proposed to be made, and where the modifications are proposed to be made by agreement between the employer and the workers or a Trade Union or other representative body of the workers, a certified copy of that agreement shall be filed alongwith the application.

According to Section 35(3) of the Industrial Relations Code, 2020 the foregoing provisions of this Code shall apply in respect of an application under sub-section (2) as they apply to the certification of the first time standing orders.

Under the Code the provision exists for modification of the Certified Standing Orders. The Standing Orders can be modified even before expiry of the prescribed time limit provided both the management and its workmen agree for it. An employer or workmen or trade union or other representative body of workmen desiring the change can apply for modification of standing orders to the Certifying Officer. The procedure for submission of application for modification is the same as for initial certification under the Code. When it is proposed to make modifications by agreement between the employer and workmen, a certified copy of that agreement has also to be filed along with application for modification.

The Code provides that standing orders finally certified cannot be modified unless there is prior agreement between employer and the workmen or the trade union or any representative body of the workmen before expiry of the sixth month from the date on which, the last modification was made. The objective of laying down the time frame was that the standing orders or their modifications should be given a fair deal. However in many leading cases, the time limit has been relaxed. A few circumstances under which it can be brought about are:

(i) where the applicants feel that a modification will be more beneficial,

(ii) where some inconvenience hardship etc., is experienced with the adoption of the last standing order,

(iii) where some facts were left at the time of certification

(iv) where circumstances have changed since the implementation of standing order.

Oral Evidence in Contradiction of Standing Orders not Admissible:

According to Section 36 of the Industrial Relations Code, 2020 no oral evidence having the effect of adding to or otherwise varying or contradicting standing order as finally certified under this Chapter shall be admitted in any Court.

Interpretation, etc., of Standing Orders:

According to Section 37 of the Industrial Relations Code, 2020 if any question arises as to the application, or interpretation, of the standing orders certified under sub-section (8) of section 30 or the modification made therein by an agreement entered into under sub-section (5) of that section, the employer or any worker or workers concerned or the Trade Union in relation to the workers employed in the industrial establishment or undertaking, wherein the question has arisen, may apply to the Tribunal, within the local limits of whose territorial jurisdiction such establishment or the office, section or branch of the undertaking is situated, to decide the question and such Tribunal shall, after giving all the parties concerned a reasonable opportunity of being heard, decide the question and its decision shall be final and binding on the concerned employer and the workers.

The Code provides that if any dispute arises regarding application or interpretation of the certified Standing Orders, such matter shall be referred to a Tribunal by the employer or workmen or a trade union. The Tribunal constituted under the Code, “after giving the parties an opportunity of being heard” decides the matter and such decision shall be final and binding on all parties concerned. However, the expression “after giving the parties an opportunity of being heard” has been differently interpreted.

Time-Limit for Completing Disciplinary Proceedings and Liability to Pay Subsistence Allowance:

According to Section 38(1) of the Industrial Relations Code, 2020 where any worker is suspended by the employer pending investigation or inquiry into complaints or charges of misconduct against him, such investigation or inquiry, or where there is an investigation followed by an inquiry, both the investigation and inquiry shall be completed ordinarily within a period of ninety days from the date of suspension.

According to Section 38(2) of the Industrial Relations Code, 2020 the standing orders certified under sub-section (8) of section 30 or modified under section 35 shall provide that where a worker is suspended as referred to in sub-section (1), the employer in relation to an industrial establishment or undertaking shall pay to such worker employed in such industrial establishment or undertaking subsistence allowance at the rates specified in sub-section (3) for the period during which such worker is placed under suspension pending investigation or inquiry into complaints or charges of misconduct against such worker.

According to Section 38(3) of the Industrial Relations Code, 2020 the amount of subsistence allowance payable under sub-section (2) shall be — (a) at the rate of fifty per cent. of the wages which the worker was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and (b) at the rate of seventy-five per cent of such wages for the remaining period of suspension, if the delay in the completion of disciplinary proceedings against such worker is not directly attributable to the conduct of such worker.

Power to Exempt:

According to Section 39 of the Industrial Relations Code, 2020 the appropriate Government may, by notification, exempt, conditionally or unconditionally, any industrial establishment or class of industrial establishments from all or any of the provisions of this Chapter.

Offences and Penalties:

According to Section 86(10) of the Industrial Relations Code, an employer who fails to submit draft standing orders as required by section 30, or who modifies his standing orders otherwise than in accordance with section 35, shall be punishable with fine which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees and in the case of a continuing offence with an additional fine of two thousand rupees per day till the offence continues.

According to Section 86(11) of the Industrial Relations Code, an employer who does any act in contravention of the standing orders finally certified under this Code shall be punishable with fine which shall not be less than one lakh rupees, but which may extend to two lakh rupees.

Power of Appropriate Government:

The appropriate government may, after previous publication, by notification in the Official Gazette, make rules to carry out the purposes of this Code. Such rules may:

• Prescribe additional matters to be included in the Schedule, and the procedure to be followed in modifying S.O. certified under this Act, in accordance with any such addition;
• Set out model S.O. for the purpose of this Act;
• Prescribe the procedure of certifying officers and appellate authorities;
• Prescribe the fee which may be charged for copies of S.O. entered in the register of S.O.;
• Provide for any other matter which is to be or may be prescribed.

Conclusion:

Standing orders play a crucial role in the effective functioning of organizations, whether in a governmental, corporate, or non-profit context. They serve as formal guidelines that outline the procedures and protocols for decision-making and operational processes. By establishing clear expectations, standing orders promote consistency, transparency, and accountability among members. This clarity helps to minimize misunderstandings and disputes, fostering a more collaborative and efficient environment. Standing orders facilitate streamlined communication within the organization. They provide a reference point for members to understand their roles and responsibilities, which can significantly enhance productivity. When everyone is aware of the established procedures, it reduces the time spent on deliberations and allows for quicker, more effective action.

However, the effectiveness of standing orders is contingent upon their relevance and adaptability. Organizations must regularly review and update these orders to reflect changes in regulations, organizational goals, or external circumstances. This flexibility ensures that the standing orders continue to meet the needs of the organization and its members.

In conclusion, standing orders are indispensable tools that enhance organizational governance and efficiency. They create a structured environment conducive to informed decision-making and accountability, ultimately contributing to the organization’s overall success. By prioritizing regular assessments and updates, organizations can ensure that their standing orders remain effective and relevant, fostering a culture of responsibility and continuous improvement. In an ever-changing landscape, the ability to adapt and evolve is vital, making standing orders a foundational element of organizational resilience and effectiveness.

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