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      Question

      Under the Industrial Relations Code, 2020, which of the

      following correctly states the threshold for mandatory preparation of Standing Orders and the key matters they must cover?
      A All industrial establishments with 100 or more workers must prepare standing orders; they must cover wages and work conditions only Correct Answer Incorrect Answer
      B All industrial establishments with 300 or more workers must prepare standing orders; they must cover classification of workers, hours of work, holidays, paydays, wage rates, termination, suspension for misconduct, and grievance redressal mechanisms Correct Answer Incorrect Answer
      C Only factories with 500 or more workers must prepare standing orders; they must be certified by the Labour Commissioner within 30 days Correct Answer Incorrect Answer
      D All industrial establishments with 20 or more workers must prepare standing orders; they must cover only disciplinary matters and termination procedures Correct Answer Incorrect Answer

      Solution

      The Industrial Relations Code, 2020 raised the threshold for mandatory Standing Orders from 100 workers (under the old Industrial Employment (Standing Orders) Act, 1946) to 300 workers, thereby providing greater flexibility to smaller establishments. Industrial establishments with fewer than 300 workers are instead governed by model standing orders prepared by the Central Government, removing the earlier compliance burden on medium-sized enterprises. The mandatory matters to be covered in Standing Orders include: (i) classification of workers (permanent, temporary, apprentice); (ii) manner of informing workers about hours of work, holidays, paydays, and wage rates; (iii) termination of employment; (iv) suspension for misconduct; and (v) grievance redressal mechanisms for workers. A key reform is that under the Code, the Central Government prepares model standing orders based on which establishments must prepare their own standing orders replacing the old certification system.

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