Crossing 100 Employees: Standing Orders and Works Committees
At 100 workers, works committees and standing orders traditionally become mandatory in India - but the new Labour Codes are shifting this threshold to 300.
Hitting 100 employees has traditionally been the point where works committees and standing orders become mandatory in India - but the new Labour Codes are actively moving that line, so what applies to you right now depends on your state.
Key facts at a glance
- A works committee becomes mandatory for industrial establishments with 100 or more workmen under the Industrial Disputes Act framework.
- Standing orders traditionally applied at the 100-worker threshold under the Industrial Employment (Standing Orders) Act, 1946.
- The Industrial Relations Code, 2020 raises the standing orders and related thresholds to 300 workers.
- All four Labour Codes came into force nationally on 21 November 2025.
- Central rules were pre-published in draft on 30-31 December 2025, with final Central rules expected around April 2026.
- Labour is a concurrent subject - as of mid-2026, most states have not yet fully notified their own Labour Code rules, so applicability on the ground remains uneven.
Works committee: still tied to 100
A works committee is a joint body of employer and employee representatives set up to discuss matters of common interest and smooth over day-to-day friction before it escalates into a formal dispute. This requirement, rooted in the Industrial Disputes Act framework, generally applies once an industrial establishment employs 100 or more workmen, and this specific threshold hasn't been the headline change under the new Codes.
If you've just crossed 100, this is a concrete, near-term obligation rather than a future planning item.
Standing orders: the threshold that's moving under your feet
This is where things get genuinely confusing right now. Under the older Industrial Employment (Standing Orders) Act, 1946, certified standing orders - the formal document governing classification of workers, shifts, leave, termination and discipline - generally became mandatory at 100 or more workers.
The Industrial Relations Code, 2020, one of the four Codes now nationally in force since 21 November 2025, raises this threshold to 300 workers. But because labour is a concurrent subject, each state also has to notify its own rules under the new Codes before they're fully operational there. As of mid-2026, most states haven't finished that process. The practical result: an employer with 100-299 workers may still be under the old 100-worker standing orders obligation in a state that hasn't switched over, or may be exempt from it in a state that has adopted the new 300-worker threshold.
Do not assume either number applies to you by default - check your specific state's notification status before deciding standing orders are or aren't required.
What changes, at a glance
| Obligation | Traditional threshold | Threshold under IR Code, 2020 | Status as of mid-2026 |
|---|---|---|---|
| Works committee | 100+ workmen | Broadly retained | Applies once state rules are notified, subject to legacy rules where not |
| Standing orders | 100+ workers | 300+ workers | Depends on state's Code notification status |
| Retrenchment/layoff government permission | 100+ workmen (ID Act Ch. V-B) | 300+ workers | Depends on state's Code notification status |
What to do this week
Find out whether your state has notified its rules under the Industrial Relations Code, 2020 - this single fact determines whether the 100-worker or 300-worker threshold governs your standing orders and related obligations right now. If you're already at 100 employees and your state hasn't transitioned, start the standing orders certification process rather than waiting, since a change of state rules later doesn't retroactively excuse a current gap.
Sources
- Ministry of Labour and Employment - labour.gov.in
- Respective state labour department portals
- Chief Labour Commissioner (Central) - clc.gov.in
If you're not sure where your business stands on this, ComplianceCheck's labour code transition assessment gives you a clear picture in a few minutes.
This guide is general information, not legal advice. Requirements vary by state, sector and headcount - confirm specifics with a compliance professional or the relevant authority.
Frequently Asked Questions
- Do we need standing orders once we hit 100 employees?
- Under the traditional Industrial Employment (Standing Orders) Act, 1946, standing orders generally applied at 100 or more workers, but the new Industrial Relations Code, 2020 raises this threshold to 300 - which one applies depends on whether your state has notified its own rules under the new Codes.
- What is a works committee and why does 100 matter?
- A works committee is a joint employer-employee body for addressing workplace matters and disputes, and it becomes mandatory under the Industrial Disputes Act framework for industrial establishments with 100 or more workmen.
- Are the Labour Codes actually in force right now?
- Yes, all four Labour Codes came into force nationally on 21 November 2025, but each state must also notify its own rules, and as of mid-2026 most states have not yet fully notified theirs, so employers should track their specific state's status.
- So which threshold applies to us today, 100 or 300?
- If your state has not yet notified rules under the Industrial Relations Code, the older 100-worker thresholds for standing orders and related obligations likely still apply in practice - confirm your state's current status before assuming either figure.
- Does this threshold count contract workers too?
- Generally these thresholds are based on workmen employed, and how contract or temporary workers are counted can vary, so check the specific definition under the applicable Act or Code and your state's rules.
- What do standing orders actually cover?
- Standing orders formally define conditions of employment such as classification of workers, shift timings, leave, termination procedures and disciplinary action, and once required, they must be certified by the relevant labour authority.
Check your status
Labour Code Readiness
Readiness assessment for India's 4 new Labour Codes (Wages, Social Security, OSH, Industrial Relations), with implementation cost estimates.