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Standing Order in Labour Law: A Complete Guide for Employers

Standing Order in Labour Law

Introduction

If you are a business owner or a HR professional, there are high chances of you finding yourself scratching your head over compliance with labour laws in India. We assure you that you’re not alone. One term that often pops up and leaves people puzzled is the standing order in labour law. It’s not just a piece of paperwork; it’s the backbone of workplace discipline and harmony.

Over the last three decades, we, at Vishaal Consultancy Services, have seen how getting this basic procedure right can save companies from legal troubles and boost employee morale. So, let’s break it down together—step by step—and turn you into a pro at drafting, certifying, and even translating standing orders. Ready? Let’s dive in!

What Is a Standing Order in Labour Law?

First things first: what is a standing order in labour law?

Think of it as your company’s rulebook for all its employees. It’s a set of guidelines that defines working conditions, employee conduct, disciplinary actions, and everything required to run an organisation successfully. In India, this isn’t optional. It’s mandated under the Industrial Employment (Standing Orders) Act, 1946, for industrial establishments with 100 or more workers, though some states, like Karnataka, lower this threshold to 50. The goal of labour law standing orders is to ensure fairness, transparency, and consistency in how you manage your workforce.

Imagine running a factory without clear rules on attendance or misconduct. Chaos, right? That’s where labour law standing orders come in—they bring order to the chaos. Whether you’re a manufacturing unit, a construction firm, or an industrial setup, this document is your legal shield and operational guide.

Why Standing Order in Labour Law Matters

You might be wondering, “Why should I care?”

You must care because a well-drafted standing order in labour law does two big things: it protects your business from disputes and keeps your employees informed about their rights and duties. Without it, you’re vulnerable to labour unrest, penalties, or even court battles. Plus, it’s not just about compliance, it’s also about building trust with your employees.

Need help avoiding these pitfalls by getting your standing orders spot-on?

How to Draft Standing Order

Now that you have understood the significance of the standing order act in labour law, the question to ask is how do you draft a standing order? This is not something you type out in a word document and get it printed. Let’s walk you through the step-by-step process.

Step 1: Understand and Outline the Specifics

The Standing Orders Act in labour law lays out specific topics you must cover. These include:
  • Work hours, shifts, and holidays
  • Attendance and leave policies
  • Misconduct rules (e.g., theft, insubordination)
  • Disciplinary procedures
  • Termination and resignation processes
A good way to start is by tailoring these to your industry. For example, a factory might need strict safety clauses, while an office might focus on punctuality. Keep it clear, concise, and fair. Keep in mind that vague rules invite trouble.
Pro Tip: Involve your HR and legal teams early. They’ll spot gaps and ensure your draft aligns with the labour law standing orders framework. Make sure that you also check the state-specific rules as some states tweak the Act’s requirements.
Why Standing Order in Labour Law Matters
Need help staying compliant with state-specific rules?
Experts at Vishaal Consultancy Services have your back!

Step 2: Start the Certification Process of Standing Orders

Once the draft is ready, it’s time for the certification process of standing orders. This is where the real action begins. Under the Standing Orders Act in labour law, you must submit your draft to the Certifying Officer (usually a Labour Commissioner, or a designated authority, for instance, Deputy Labour Commissioner in Karnataka) within six months of the Act applying to your industrial establishment.

Here’s how it works:

  • Submission: Send five copies of your draft standing order, along with details in both the local language and English.
  • Employee Input: The Certifying Officer shares it with your workers or trade unions for objections and they get 15 days to respond.
  • Review: The officer examines the draft for fairness and legality. They might suggest changes. Don’t worry—this is a common part of the process.
  • Certification: Once approved, you’ll get a certified standing order in labour law that’s binding on both you and your employees.
Pro tip: Keep all communication open with your workforce during this stage. Objections from the employees or trade unions often derail certification when employees feel blindsided. Transparency is your friend here.
Certification Process of Standing Orders

Step 3: Translation of the Standing Order in Labour Law

This is where many organisations stumble. If your workforce speaks Hindi, Tamil, Bengali, or any other regional language, your standing order in labour law must be accessible to them. The law doesn’t explicitly mandate translation, but the certification process often requires you to submit drafts both in the local language and English.

Why is it important? Because a worker who doesn’t understand the rules can’t follow them. Translate key sections, including work hours, leave policies, disciplinary actions, accurately. Hire a professional translator if needed as Google Translate often doesn’t justify the legal content!

How to Stay Compliant with the Standing Order in Labour Law

You got your draft standing order certified. What next? How do you stay on the right side of the law?

Here’s your compliance checklist:

  • Display It: Post the certified standing order prominently at your workplace—notice boards, break rooms, wherever employees can see it.
  • Update It: If your business changes, so should your standing orders. File modifications with the Certifying Officer as needed.
  • Educate Your Team: Train your managers and workers on the rules. Ignorance isn’t a defence in labour disputes.
  • Audit Regularly:
    The laws may change from time to time. Make sure your labour law standing orders are in sync with updates to the Standing Orders Act in labour law.
Miss a step, and you’re inviting fines or legal scrutiny.
how to stay compliant with standing order

Common Pitfalls and How to Avoid Them

Let’s talk traps. One common mistake to avoid is rushing the draft standing order process. A sloppy draft gets rejected, wasting time.

Another common pitfall is ignoring employee feedback during certification. That’s a fast track to objections and delays. And the last, but common oversight, is skipping the translation. Remember, unreadable rules breed confusion and non-compliance.

Here’s the fix:
Treat your standing order in labour law like a living document. Review it with fresh eyes, consult experts, and test it against real-world scenarios. Be as thorough as possible.

Avoid these common pitfalls of standing order in labour law with experts at Vishaal Consultancy Services!

Exemption from Labour Law on Standing Orders for Service Based Sectors

The Karnataka State Government has renewed the exemption from the Industrial Employment (Standing Orders) Act, 1946 (IESO Act), for IT and ITeS companies, startups, and other knowledge-based sectors for a further period of five years. This exemption, initially granted in 1999, allows these companies to operate without adhering to the IESO Act’s requirements to define conditions of employment through certified standing orders. This move aims to foster the growth of the service sector by providing greater flexibility in employment practices, recognizing the unique nature of the industry.
The exemption applies to sectors such as:
  1. IT and ITeS
  2. Startups
  3. Animation and Gaming
  4. Computer Graphics
  5. Telecom
  6. Business and Knowledge Process Outsourcing (BPO/KPO)
  7. Other knowledge-based industries
However, this exemption is not without conditions. Employers must still comply with certain provisions to safeguard employee interests. These include the establishment of internal committees for addressing sexual harassment complaints, setting up grievance redressal mechanisms, and keeping labour authorities informed of disciplinary actions. By balancing industry needs with employee protection, the government seeks to maintain Bengaluru’s attractiveness as a tech hub while ensuring a fair working environment.

Conclusion

From understanding what is a standing order in labour law to nailing the certification process of standing orders, you’re now equipped to keep your business compliant and your employees happy. The Standing Orders Act in labour law isn’t here to trip you up—it’s here to help you succeed.

At Vishaal Consultancy Services, we’re not just about ticking the boxes—we’re about making compliance easy and effective. We offer solutions to all your statutory compliance needs, whether it is to draft a standing order or to streamline the certification process of standing orders. We’ll guide you through every objection and revision. Want translations that click with your workforce? We’ve got you covered.

Review your current standing orders, start drafting if you haven’t, and reach out to us at Vishaal Consultancy Services for a stress-free journey. Got questions? We’ve got the answers! Connect with us today.

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