Standing Orders Under the IR Code: Who Needs Them
Which employers must adopt certified standing orders under India's Industrial Relations Code, how the applicability threshold has changed, and what model standing orders mean below it.
Standing orders are the formal, certified rulebook that governs conditions of employment for workers at an establishment. The Industrial Relations Code changes who must have their own certified version, raising the applicability threshold from 100 to 300 workers, though the actual date this applies to your business depends on your state.
Key facts at a glance
- Standing orders cover matters like worker classification, attendance, leave, termination, suspension and disciplinary procedure.
- Under the earlier Industrial Employment (Standing Orders) Act, 1946, certified standing orders were mandatory for establishments with 100 or more workers.
- The Industrial Relations Code, 2020 raises this threshold to 300 workers.
- Establishments below the applicable threshold are generally governed by model standing orders issued by the government, which apply automatically.
- The Industrial Relations Code, along with the other three Labour Codes, came into force nationally on 21 November 2025.
- Labour is a concurrent subject, so each state must notify its own rules before the 300-worker threshold is operational there.
- As of mid-2026, most states have not yet fully notified their Labour Code rules, so the older 100-worker threshold may still be the operative one in practice.
What standing orders actually cover
Standing orders exist to remove ambiguity about the terms of employment for a workforce. A typical set covers classification of workers (permanent, temporary, probationer, casual), working hours and shifts, attendance and late-coming rules, leave entitlement, termination and notice, and the disciplinary procedure for misconduct. Once certified, they function like an internal employment code that both the employer and workers can be held to.
Certified versus model standing orders
There are effectively two tiers. Establishments above the applicability threshold must draft their own standing orders addressing their specific operations and submit them to the relevant authority for certification. Establishments below the threshold are covered automatically by model standing orders, a generic government-issued template that applies without any employer action required.
| Situation | Standing orders in effect | Employer action needed |
|---|---|---|
| Above applicability threshold | Employer's own certified standing orders | Draft and submit for certification |
| Below applicability threshold | Government model standing orders | None; applies automatically |
| Above threshold but not yet certified | Model standing orders apply in practice | Certification still required; compliance gap until completed |
Why the threshold change matters
Raising the threshold from 100 to 300 workers means a meaningfully larger group of mid-sized establishments will fall below the mandatory-certification line once the change is fully operational, relying instead on model standing orders rather than a certified, customised set of rules. For growing businesses, this is a real operational difference: certified standing orders let an employer tailor disciplinary and termination procedures to its actual business, while the model version is generic.
Where this actually stands today
As with other Industrial Relations Code changes, the 300-worker threshold is written into a law that is in force nationally since 21 November 2025, but its practical application depends on each state notifying its own rules. Because labour is a concurrent subject, a state's Shops and Establishments framework and its adoption of the Code's rules both matter. As of mid-2026, most states have not completed this notification, so many employers should continue to treat the pre-existing 100-worker threshold as the operative one until their state confirms otherwise.
What HR should check now
- Whether your establishment currently has certified standing orders, and if so, whether they are up to date.
- Your current headcount relative to both the 100-worker and 300-worker thresholds.
- Your specific state's notification status for the Industrial Relations Code.
If your headcount is near either threshold, do not assume the higher 300-worker line already protects you from the certification requirement; confirm your state's actual status first.
If you are not sure where your business stands on this, ComplianceCheck's labour code assessment gives you a clear picture in a few minutes.
Sources
- Ministry of Labour and Employment — labour.gov.in
- Relevant state labour department portal
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
- What are standing orders?
- Standing orders are formal, certified rules that define conditions of employment for workers, covering matters like classification of workers, attendance, leave, termination and disciplinary action, so both employer and workers know the applicable rules in advance.
- What is the employee threshold for mandatory standing orders under the IR Code?
- The Industrial Relations Code raises the threshold for mandatory certified standing orders from 100 workers under the earlier Industrial Employment (Standing Orders) Act to 300 workers, once the Code is operational in a given state.
- Do employers below the threshold have no rules at all?
- No, employers below the threshold are generally covered by government-issued model standing orders that apply automatically, so there are always some standing orders in effect, the question is only whether an employer must certify its own version.
- Is the 300-worker threshold for standing orders already active everywhere?
- Not uniformly. The IR Code is in force nationally since 21 November 2025, but each state must notify its own rules before the higher threshold is operational there, and as of mid-2026 most states have not completed that step.
- What happens if a covered employer never certifies its own standing orders?
- An employer required to have certified standing orders but that has not obtained certification is exposed to non-compliance risk and, in practice, will be treated as governed by the applicable model standing orders until it certifies its own.
- Can an employer customise the model standing orders?
- Yes, an employer above the applicability threshold can draft its own standing orders addressing its specific operational needs and submit them for certification, rather than remaining under the generic government model.
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