PART I – INTRODUCTION TO STANDING

ORDERS & THE INDUSTRIAL

EMPLOYMENT (STANDING ORDERS)
ACT, 1946

1. INTRODUCTION
Industrial discipline is the backbone of any organised workplace. As industries grew in size and
complexity during the early 20th century, disputes became frequent not only about wages or
dismissal but also about service conditions, working hours, shift timings, leave rules,
classification of workers, and procedures for disciplinary action. In most industrial
establishments, these conditions were never written down. They varied from department to
department, supervisor to supervisor, and sometimes even from worker to worker.

This caused confusion, discrimination, arbitrary action, and industrial unrest.

To remove these uncertainties and provide stable, clear, and uniform service conditions, the
Government enacted the Industrial Employment (Standing Orders) Act, 1946, popularly
known as the Standing Orders Act.

The Act makes it compulsory for every employer to formally define, draft, and get certified the
conditions of employment in the form of Standing Orders that bind both employer and
workmen.

Standing Orders are thus statutory terms of employment, achieving three central objectives:

1. Uniformity and certainty in service conditions

2. Fairness and transparency in dealing with workers
3. Prevention of arbitrariness and victimisation

In short:

Standing Orders transform informal, vague, and managerial whims into codified, certain,
and just terms of employment.

2. HISTORICAL BACKGROUND – WHY THE ACT WAS

NEEDED
2.1 Pre-1946 Situation: Chaos and Arbitrary Practices

Before the enactment of the Standing Orders Act, service conditions in industrial establishments
were:

 Unwritten
 Inconsistent
 Left entirely to the employer’s discretion
 Varied according to the will of supervisors

Workers did not know:

 What constituted misconduct

 What disciplinary action could be taken
 What leave rules applied
 When they could be suspended or terminated
 Whether contract was temporary or permanent
 What wages or attendance rules applied

This led to:

 Victimisation
 Unfair dismissals
 Frequent strikes
 Industrial unrest

Courts found it difficult to regulate employer actions because there were no written terms.

2.2 International Influence

The movement for codifying employment conditions came from:

 British Industrial Employment Codes

 ILO Conventions on industrial relations
 Growing Indian trade unionism
 The need for stability in industrial production during and after WWII

2.3 Legislative Response

The Government appointed various committees that recommended:

 A statutory obligation on employers to define employment conditions

 A certification authority to ensure fairness
 A binding code of conduct enforceable on both parties

This resulted in the enactment of:

Industrial Employment (Standing Orders) Act, 1946
came into force on 23rd April 1946.

3. OBJECTIVES OF THE STANDING ORDERS ACT,

1946
The Act was enacted with the principal purpose of standardising and formalising service
conditions in industrial establishments.

The main objectives are:

(1) To require employers to define conditions of employment clearly

No worker should work without knowing:

 Duties
 Service conditions
 Shift timings
 Leave rules
 Punishments
 Conduct expected

(2) To make service conditions uniform

Different rules for different workers often caused discrimination. Standing Orders ensure
uniformity.

(3) To prevent arbitrary actions

Standing Orders act as a check on managerial discretion.

(4) To maintain industrial peace

Clarity reduces disputes and friction.

(5) To improve industrial relations

Transparent rules enhance trust between management and labour.

(6) To incorporate principles of natural justice

Standing Orders require:

  Notice of charges
 Domestic inquiry
 Opportunity to defend

(7) To make disciplinary action fair and predictable

By defining:

 What is “misconduct”
 Punishments
 Procedure

The Act thus creates a mini labour code for each industrial establishment.

4. NATURE AND LEGAL CHARACTER OF STANDING

ORDERS
Standing Orders are statutory service conditions, not mere contractual terms.
They acquire legal force once certified.

Important features:

(a) Binding nature

Once certified, Standing Orders bind:

 The employer
 All present and future employees
 Even temporary and casual workers

(b) Supersede inconsistent contracts

If an appointment letter conflicts with Standing Orders, the Standing Orders prevail.

(c) No unilateral change

Employers cannot alter them without following Section 10.

(d) Part of statutory labour rights

Violation can lead to:

 Industrial dispute
  Court intervention
 Reinstatement of workers

(e) Must be “fair and reasonable”

Certifying authorities must ensure Standing Orders protect workmen from exploitation.

5. APPLICABILITY OF THE ACT – SECTION 1

The Act applies to:

 Every industrial establishment employing 100 or more workers

 Government may reduce the limit to 50 workers
 Once applicable, it remains applicable even if employment falls below threshold

The Act covers:

 Factories
 Mines
 Plantations
 Railways
 Transport undertakings
 Large workshops
 Engineering industries
 Public sector undertakings (PSUs)

6. DEFINITIONS UNDER THE ACT

Key definitions include:

(a) Industrial Establishment – Section 2(e)

Includes:

 Factories
 Mines
 Railways
 Workshops
 Oilfields
 Power plants
 Government industrial units
(b) Employer – Section 2(d)

Means:

 Management
 Occupier
 Manager
 Agent of the employer

(c) Workman – Section 2(i)

Very similar to Section 2(s) of the Industrial Disputes Act.

Includes:

 Manual
 Technical
 Operational
 Clerical staff

Excludes:

 Managerial staff
 Supervisors performing managerial functions

(d) Certifying Officer & Appellate Authority

Authorities empowered to approve, modify, and certify Standing Orders.

7. MODEL STANDING ORDERS – THEIR ROLE

Before an employer drafts and gets certified Standing Orders, Model Standing Orders (issued
by the Central/State Government) automatically apply.

Purpose of Model Standing Orders:

 Provide uniform baseline rules

 Prevent management from functioning without written rules
 Ensure fairness until certified Standing Orders are approved

Model Standing Orders cover:

 Classification of workmen
  Attendance
 Shifts
 Leave
 Termination
 Misconduct
 Disciplinary procedure
 Wages during suspension

Important Case:

Western India Match Co. Ltd. v. Workmen, AIR 1973 SC 2650

Facts:
Workers claimed that Model Standing Orders applied until employer’s Standing Orders were
certified.

Held:
Supreme Court held that Model Standing Orders automatically come into force the moment
the Act applies to an establishment.

8. IMPORTANCE OF STANDING ORDERS IN

INDUSTRIAL RELATIONS
(i) Predictability

Clear rules = less confusion.

(ii) Protection against arbitrary action

Standing Orders limit absolute managerial discretion.

(iii) Provide legal framework for discipline

Misconduct must be defined; punishment must follow procedure.

(iv) Provide rights and obligations

Both employer and worker know their duties.

(v) Reduce industrial disputes

Many conflicts arise from unclear service conditions; written orders reduce this drastically.
9. STANDING ORDERS AS PART OF INDUSTRIAL
JURISPRUDENCE
Standing Orders integrate elements of:

 Labour law
 Administrative law
 Natural justice
 Industrial relations
 Industrial democracy

They promote:

 Transparency
 Fairness
 Accountability

Courts repeatedly emphasise their quasi-statutory nature.

10. SIGNIFICANCE OF THE ACT (1946) IN THE

PRESENT ERA
Even today, the Act remains vital because:

 Working conditions need uniformity

 Industrial establishments need structured discipline
 Disputes must be resolved based on written rules, not oral directions
 It lays the foundation for domestic enquiries and disciplinary action
 It is integrated into the Industrial Relations Code, 2020

Modern relevance

In IT, gig work, and large corporate sectors, Standing Orders:

 Prevent harassment
 Ensure policy clarity
 Prevent wrongful terminations
 Protect contractual and fixed-term employees
haustive, exam-oriented, and analytical answer)

1. INTRODUCTION
Industrial relations in India are governed by a combination of statutory law, judicial doctrines,
disciplinary rules, and negotiated practices. Among these, the Industrial Employment
(Standing Orders) Act, 1946 occupies a foundational place.

Before 1946, employment conditions in factories and industrial establishments were arbitrary,
unwritten, inconsistent, and unequal. Employers would adopt different rules for different
workmen. There was no transparency on:

 service conditions,
 leave rules,
 termination rules,
 classification of workmen,
 holidays,
 misconduct and punishments,
 disciplinary procedure,
 grievance redressal.

Workmen were often dismissed without enquiry, without notice, and without communicating
reasons. These injustices produced industrial unrest, frequent strikes, and disputes.

To eliminate ambiguity and ensure uniformity, the Standing Orders Act, 1946 was enacted to
make the terms of employment clear, definite, and equitable.

2. OBJECTS AND PURPOSE OF THE ACT

The main objects are:

(1) Standardisation of service conditions

To bring uniformity in employment rules so that all workmen working in the same establishment
know their rights and obligations.

(2) Transparency

To eliminate unwritten, arbitrary, and discriminatory employment practices.

(3) Certainty of rights & duties

Both employer and workmen must have clarity on:

 classification (permanent, temporary, casual, probationer),

 leave, holidays, shifts,
 misconduct, punishments,
 notice periods, retirement, superannuation, etc.

(4) Prevention of industrial disputes

Clarity of service conditions prevents misuse of discipline and reduces litigation/strikes.

(5) Statutory protection

Standing Orders become statutory terms of employment, overriding any contract or agreement.

3. APPLICABILITY OF THE ACT

(SECTION 1)
The Act applies to:

✔ Industrial establishments where 100 or more workmen are employed.

✔ State Governments can reduce this limit to 50 workmen (many states have done so).
✔ Applies to factories, mines, plantations, transport services, and other notified establishments.

4. STANDING ORDERS: MEANING &

NATURE
Standing Orders are written rules of conduct for workers in an industrial establishment,
covering every major aspect of employment.

Nature:

 They are statutory in character.

 Once certified, they override appointment letters, contracts, or internal policies.
 They create legal obligations on employers.
  They ensure predictability in employment.

Standing Orders = “Industrial Constitution” of an establishment.

5. DEFINITIONS (SECTION 2)
1. Certifying Officer

Labour Commissioner or Labour Court Judge authorised to certify Standing Orders.

2. Appellate Authority

Labour Tribunal or Industrial Tribunal hearing appeals from Certifying Officer.

3. Industrial Establishment

Includes:

 factories,
 railways,
 mines,
 plantations,
 transport undertakings,
 large shops notified by state.

4. Workman

Any person doing manual, technical, clerical, skilled, or unskilled work.

Excludes supervisory and managerial staff.

6. MATTERS TO BE COVERED IN
STANDING ORDERS (SCHEDULE I)
This is the heart of the Act.

Every Standing Order must compulsorily include:

1. Classification of workmen
o permanent
 o temporary
o probationer
o casual
o apprentice
o badli (substitute)
2. Hours of work, holidays, shifts
3. Attendance, late coming rules
4. Leave rules – sick, casual, earned
5. Entry/Exit rules
6. Recruitment procedure
7. Suspension, misconduct, fines
8. Disciplinary procedures
9. Termination, notice, discharge
10. Temporary stoppage of work, layoff, retrenchment
11. Redressal of grievances
12. Age of retirement

7. PROCEDURE FOR CERTIFICATION

(SECTION 3–5)
Step 1: Submission of Draft Standing Orders (Section 3)

Employer must prepare Draft Standing Orders and submit them to:

 Certifying Officer,
 Trade Union/representative workmen.

Step 2: Hearing and Modifications (Section 4)

The Certifying Officer ensures:

 rules are fair and reasonable,

 rules cover all Schedule I matters,
 workmen’s objections are heard.

Step 3: Certification (Section 5)

Final certified Standing Orders are:

 signed,
 registered,
 displayed prominently.
Binding effect (Section 7)

Certified Standing Orders become applicable from 30 days after authentication.

⭐ IMPORTANT CASE LAWS ON

CERTIFICATION
1. Western India Match Co. Ltd. v. Workmen, AIR 1973 SC
2650
FACTS: Employer’s certified Standing Orders included a clause allowing automatic termination
after 3 days’ absence.
HELD: Supreme Court held that “automatic termination” was unfair & unreasonable.
PRINCIPLE: Standing Orders must pass the test of fairness.
SIGNIFICANCE: First case applying “fair & reasonable” test to Standing Orders.

2. Associated Cement Companies Ltd. v. P.D. Vyas, AIR 1957

SC 1386
FACTS: Employer tried to amend Standing Orders unilaterally.
HELD: Modification is permissible only under Section 10 (not at employer’s will).
PRINCIPLE: Standing Orders = statutory; cannot be changed arbitrarily.

3. Glaxo Laboratories v. Labour Court, Meerut, AIR 1984 SC

505
FACTS: Employer dismissed workman for misconduct not listed in Standing Orders.
HELD: No punishment can be imposed for misconduct not defined in Standing Orders.
PRINCIPLE: "No misconduct = No punishment."
SIGNIFICANCE: Standing Orders provide exhaustive list of misconduct.
⭐ 8. MODEL STANDING ORDERS VS
CERTIFIED STANDING ORDERS
Before certification, Model Standing Orders automatically apply.

Once Certified Standing Orders are approved:

 they override Model Standing Orders,

 they become statutory & binding.

⭐ 9. MODIFICATION OF STANDING
ORDERS (SECTION 10)
Standing Orders may be modified:

 after 6 months of certification,

 by employer or workmen,
 following same process as certification:
draft → hearing → order → binding.

Case Law:

M.C. Raju v. Executive Engineer, (1994)

Held: Standing Orders cannot be modified retrospectively.

⭐ 10. DISCIPLINARY ACTION &

MISCONDUCT
Standing Orders must define:

 misconduct categories,
 penalties,
 procedure for enquiry.
Categories of misconduct commonly include:

 insubordination,
 absenteeism,
 strike without notice,
 theft,
 disorderly behaviour,
 disobedience.

Punishments include:

 warning,
 fine,
 suspension,
 dismissal,
 discharge.

⭐ 11. STANDING ORDERS & NATURAL

JUSTICE
Courts have repeatedly held that Standing Orders must comply with natural justice,
especially in disciplinary proceedings.

1. Sur Enamel & Stamping Works v. Their Workmen, 1963

Held: Domestic enquiry must provide:

 charge-sheet,
 opportunity to defend,
 fair hearing,
 reasoned order.

2. D.K. Yadav v. JMA Industries, (1993) 3 SCC 259

Held: Right to life under Article 21 includes right to fair procedure.
Termination without enquiry violates natural justice.

3. Delhi Cloth & General Mills v. Shambhu Nath, AIR 1978

SC 8
Held: Employer must follow Standing Orders strictly; deviation makes dismissal illegal.

⭐ 12. RELATION WITH OTHER LABOUR

LAWS
1. Relation with Industrial Disputes Act

 Standing Orders define service conditions.

 ID Act governs disputes relating to those conditions.
 No inconsistency allowed; Standing Orders prevail.

2. Relation with Shops & Establishments Acts

 Shops Acts apply to small units; Standing Orders apply to large industrial establishments.
 In conflict, Standing Orders prevail.

3. Relation with Industrial Relations Code 2020

 Repeals the Standing Orders Act.

 Introduces “Industrial Employment (Standing Orders) Chapter” with slightly
modified rules.
 Threshold increased from 100 to 300 workmen.
 Certification procedure retained.

⭐ 13. LATEST CASE LAWS (2021–2025)

(1) Tata Steel Ltd. v. Workmen, Jharkhand HC (2023)

Standing Orders override appointment letters. Employer cannot terminate in violation of

Standing Orders.

(2) HPCL v. Prabhakar, Bombay HC (2024)

Held: Non-supply of enquiry report violates Standing Orders → reinstatement with back wages.

(3) BSNL v. Tej Singh, SC (2025)

SC held that non-furnishing documents relied upon in enquiry violates Standing Orders and
principles of fairness.

(4) Infosys BPO Employees’ Union v. State of Karnataka, (2023)

Held: IT/BPO companies are industrial establishments; Standing Orders apply unless exempted.

⭐ 14. CRITICAL ANALYSIS

Strengths

 ensures transparency,
 prevents arbitrary dismissal,
 creates industrial discipline,
 reduces disputes,
 guarantees uniformity.

Weaknesses

 certification delays,
 low awareness among workers,
 employers often bypass rules,
 Standing Orders Act repealed under Industrial Relations Code (not fully enforced).

⭐ 15. CONCLUSION
The Industrial Employment (Standing Orders) Act, 1946 played a pioneering role in shaping
Indian industrial jurisprudence. It brought about:

 clarity in service conditions,

 legal discipline,
 fairness in disciplinary proceedings,
 reduction in disputes,
 uniformity across industries.

Standing Orders became the statutory backbone of employer-employee relations.

Even under the new Industrial Relations Code, the spirit and framework of the Standing Orders
Act survive and continue to govern employment relationships.
Thus, Standing Orders remain a cornerstone of industrial peace, discipline, and justice in
India.