Under the Industrial Relations Code, 2020, what is the threshold for applicability of Standing Orders to an industrial establishment, and what is the key change from the earlier Industrial Employment (Standing Orders) Act, 1946?

Solution

Under the Industrial Relations Code, 2020, the provisions relating to Standing Orders apply to industrial establishments employing 300 or more workers. This is a substantial upward revision from the Industrial Employment (Standing Orders) Act, 1946, which applied to establishments employing 100 or more workers. Standing Orders are documents that define the terms and conditions of employment including hours of work, holidays, attendance rules, leave, disciplinary procedures, and termination procedures and must be certified by the Certifying Officer after following a prescribed procedure involving workers' representatives. One of the significant changes under the Code is that the model standing orders notified by the Central Government shall apply to an establishment pending certification of its own standing orders this fills the gap that existed under the old Act where establishments sometimes operated without any certified standing orders. Establishments with fewer than 300 workers are now exempt from the mandatory Standing Orders regime, though they may voluntarily adopt model standing orders.