Background
Standing Orders under the Industrial Relations Code, 2020, as supported by the Gujarat Industrial Relations Rules, provide a clear and standardized framework for defining conditions of employment in industrial establishments. They aim to ensure transparency by prescribing uniform rules on matters such as classification of workers, work hours, discipline, and termination. This framework promotes certainty for both employers and workers, helping reduce disputes through well-defined and legally compliant service conditions.
Applicability
Industrial Relations Code, 2020 applies uniformly across India, including Gujarat, from the date it was brought into force by the Central Government. In Gujarat, the IR Code applies to all establishments covered under the Code. Provisions relating to standing orders apply to establishments with 300 or more workers, while rules on trade unions, dispute resolution, and employer-employee relations apply broadly to all applicable industries and establishments operating within the state.
Compliance Requirements under the Rules In accordance with the Code
1. Preparation of Draft Standing Orders by Employer (Section 30(1) of the Industrial Relations Code, 2020)
Employers employing 300 or more workers must prepare draft standing orders within six months of the commencement of the Industrial Relations Code, 2020, based on the applicable Model Standing Orders and other provisions necessary for the industrial establishment or undertaking. The draft must not conflict with the Code and must cover all matters specified in the First Schedule. The Model Standing Orders for the purposes of the Code, in respect of industrial establishments in the mine sector, manufacturing sector, and service sector, are those set out under the Model Standing Orders, 2026. Statements accompanying draft or modified standing orders must include establishment and worker details, be authorised and signed. Modified model standing orders apply to all units of the establishment nationwide.
2. Certification of Standing Orders (Section 30(2),(3),(4),(9),(10) | Rule 10, 13, 14 of the Industrial Relations (Gujarat) Rules, 2021)
An employer shall consult the Trade Union or recognised negotiating union, or members of the negotiating council, in respect of the draft standing order, and thereafter forward the draft electronically or otherwise to the certifying officer for certification. The certifying officer shall ask for a compliance report only in respect of provisions which require amendment, and such report shall be sent electronically by the employer. Employers adopting the Central Government’s model standing orders must electronically, in person, or by speed post intimate the certifying officer of the adoption date. The certifying officer shall enter the details of the industrial establishment in the register maintained under Rule 17. If no observation is made by the certifying officer within thirty days of receipt of the intimation, the model standing order shall be deemed to have been certified. Employers of similar establishments may jointly submit draft standing orders under Section 30(10).
3. Joint 3. Joint Draft Standing Orders by Similar Establishments — Conditions and Certification (Section 30(10) | Rule 12 of the Industrial Relations (Gujarat) Rules, 2021)
Employers of similar industrial establishments may jointly submit a draft standing order under Section 30, after consulting the Trade Union. The joint draft shall be submitted to the Commissioner or Director of Labour, who, in consultation with the certifying officers, may certify or reject it with recorded reasons. For the purposes of proceedings specified in sub-sections (1), (5), (6), (8), and (9) of Section 30, the expressions ’employer’, ‘Trade Union’, and ‘negotiating union or negotiating council’ shall respectively include all the employers, Trade Unions, and negotiating unions or negotiating councils of such similar establishments.
4. Modification of Standing Order in Gujarat (Section 35, Rule 16)
Application for modification of standing order shall be submitted electronically and contain particulars of orders to be modified along with tabular statement containing details of provisions of standing order in force, and proposed modifications, reasons and details of registered Trade union(s)
1) Such tabular statement shall be signed by a person authorized by the industrial establishment or undertaking
2) Certified standing orders shall not, except on an agreement between employer and workers, or a negotiating union or a Trade Union or other representative body of the workers, be liable to modification until expiry of 6 months from date on which the standing orders or last modifications thereof came into operation. Such an agreement shall also be filed along with application for modification
5. Payment of Subsistence Allowance in case of suspension of workers in Gujarat (Section 38)
Certified Standing Orders shall provide that where any worker is suspended pending investigation/inquiry into complaints or charges of misconduct against him, employer shall pay subsistence allowance to such worker for the period of suspension
Amount of subsistence allowance payable shall be:
Penalty & Punishment
U/s 86(7): If default is made on the part of any registered Trade Union in giving any notice, every office-bearer or other person bound by the rules of the Trade Union to give or send the same, or, if there is no such office-bearer or person, every member of the executive of the Trade Union, shall be punishable with fine which shall not be less than one thousand rupees, but which may extend to ten thousand rupees and any continuing default shall be punishable with an additional penalty of fifty rupees per day so long as the default continues.
U/s 86(10): An employer who modifies his standing orders otherwise than in accordance with section 35 , shall be punishable with fine which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees and in the case of a continuing offence with an additional fine of two thousand rupees per day till the offence continues
U/s86(11): An employer who does any act in contravention of the standing orders finally certified under this Code shall be punishable with fine which shall not be less than one lakh rupees, but which may extend to two lakh rupees and
U/s 86(12): Any person who acts in contravention of Sec 86(11) and again commits the same offence, for subsequent offence he shall be punishable with fine which shall not be less than two lakh rupees, but which may extend to four lakh rupees or with imprisonment for a term which may extend to three months, or with both.
U/s 86(20): Any person who contravenes any other provision of this Code not covered under sub-sections (1) to (19) or the rules or regulations framed under this Code shall be punishable with fine which may extend to one lakh rupees
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