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?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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