The Central government has notified new Model Standing Orders, 2026, through the Gazette of India, establishing comprehensive workplace regulations for industrial establishments across the mining, manufacturing, and service sectors. These new rules, enacted under Section 29(1) of the Industrial Relations Code, 2020, are effective immediately and replace the Industrial Employment (Standing Orders) Central Rules, 1946.
Information was available with The Chenab Times detailing that the new provisions aim to streamline and modernize labor practices, ensuring clarity on worker rights and employer responsibilities. The rules cover a broad spectrum of employment conditions, including worker classification, contractual employment protections, identification, attendance, working hours, leave entitlements, wage payments, service records, retirement, transfers, medical rights, misconduct definitions, disciplinary actions, and grievance redressal mechanisms. The framework also includes specific provisions for the service sector, such as the allowance for work-from-home arrangements.
Worker Classification and Fixed-Term Employment
Under the revised regulations, workers are categorized into seven distinct groups: permanent, temporary, apprentice, probationer, badli/substitute, fixed-term, and casual workers. A permanent worker is defined as one engaged on a permanent basis or who has completed six months of satisfactory service. Temporary workers are hired for tasks inherently of a temporary nature, while apprentices undergo training as per the Apprenticeship Act, 1961. Probationers are provisionally appointed to permanent vacancies pending full confirmation. Badli workers fill in for temporarily absent permanent or probationer staff. Fixed-term employees are engaged for a specific duration via a written contract, and casual workers are employed for incidental or casual duties.
A significant update addresses fixed-term employees, ensuring their wages, allowances, and working hours are at par with permanent workers performing similar duties. These employees are entitled to statutory benefits on a proportionate basis and are eligible for gratuity after one year of service, calculated at 15 days’ wages per completed year. Crucially, the conclusion of a fixed-term contract will not be considered retrenchment under the Industrial Relations Code.
Identification, Attendance, and Working Hours
All workers must be issued an identity badge or card containing essential details such as name, designation, employee number, blood group, contact information, emergency contacts, and a photograph. This card must be worn during working hours and surrendered upon employment termination. Misuse of another worker’s card is strictly prohibited. Attendance tracking will be mandatory at the commencement and conclusion of each shift, utilizing methods like identity cards, biometrics, or other notified systems.
Employers retain the discretion to operate multiple shifts. However, any discontinuation, restart, or alteration of shifts requires a minimum of 21 days’ advance written notice. This notice must be displayed on the notice board and provided to the secretary of any existing registered trade union. Exceptions to this notice period are permissible only in genuine emergencies or in cases of changes mandated by government orders, settlements, or awards.
Leave Entitlements and Wage Payment Procedures
Paid leave provisions are governed by the Occupational Safety, Health and Working Conditions Code, 2020, while other leave types fall under applicable laws, contracts, or customary practices. Workers are entitled to casual leave of up to 10 days annually, with a limit of three consecutive days, unless illness or unforeseen circumstances necessitate otherwise. Leave applications must be submitted at least seven days prior to the intended leave period. Refusals or postponements must be communicated in writing, detailing the reasons.
The new rules stipulate specific timelines for wage disbursement. Daily wage earners will be paid at the end of each shift, weekly earners on the last working day of the week, fortnightly earners within two days of the fortnight’s end, and monthly earners by the seventh day of the following month. All wage payments are mandated to be made electronically to the worker’s bank account. In cases of dismissal, retrenchment, or resignation, all outstanding dues must be settled within two working days. Deductions from wages are permissible only as authorized under the Code on Wages, 2019.
Service Records, Retirement, and Transfers
Establishments are required to maintain a service card for each worker, either electronically or manually, documenting details from date of birth and employment history to qualifications, family information, provident fund and ESI numbers, disciplinary records, promotions, and superannuation dates. Upon cessation of employment, workers are entitled to receive a service certificate within 10 days, outlining their work nature, designation, and tenure.
The retirement age is determined by mutual written agreement between employer and employee. In the absence of such an agreement, the default retirement age is set at 58 years. A clearly defined transfer policy must be available, typically on the HR portal. Workers may be transferred between departments, stations, or establishments under the same employer, provided their wages, grade, and service conditions remain unaffected. Transfers to inter-state locations require the worker’s explicit consent or a pre-existing clause in their appointment letter. All transfers must be accompanied by adequate notice, joining time, and travel allowances, including 50 percent of the allowance for incidental expenses.
Medical Provisions and Misconduct Definitions
Employees injured during the course of employment are entitled to immediate medical aid at the employer’s expense. New recruits must undergo a medical examination upon initial appointment, arranged and funded by the employer. Workers diagnosed with infectious or contagious diseases must inform their manager and remain absent from work until medically cleared. During such periods, they are considered on paid leave to the extent of their accrued leave balance. Failure to disclose such an illness is deemed misconduct.
The definition of misconduct is broad, encompassing theft, fraud, dishonesty, bribery, wilful disobedience of lawful orders, habitual lateness, absenteeism without leave, intoxication, fighting, indecent behavior, sleeping on duty, and deliberate work slowdowns. Causing damage to employer property, threatening or assaulting colleagues, participating in illegal strikes without prior notice, disclosing confidential information, and submitting false reimbursement claims are also classified as misconduct. Sexual harassment, as defined by the Sexual Harassment of Women at Workplace Act, 2013, is explicitly included. For the service sector, unauthorized access to IT systems or computer networks is also defined as misconduct.
Disciplinary Actions and Grievance Redressal
Workers facing misconduct allegations may be suspended pending an inquiry, which should ordinarily conclude within 90 days. During suspension, a subsistence allowance of 50 percent of the last drawn wages is provided for the first 90 days, increasing to 75 percent if the delay in inquiry is not attributable to the worker. Workers have the right to be represented by a trade union official or a co-worker during inquiries. Proceedings can be conducted in Hindi, English, or the state’s official language as per the worker’s preference. If exonerated, the worker receives full wages for the suspension period, adjusted for subsistence allowance already paid. Appeals against punishment orders must be filed within 21 days, with the appellate authority expected to decide within 15 days of the hearing.
Each industrial establishment must form an Internal Complaints Committee under the Sexual Harassment of Women at Workplace Act, 2013, submitting an annual report to the employer and district officer. Employers must also include details of sexual harassment cases filed and their resolutions in their annual reports.
Workplace grievances, including claims of unfair treatment or wrongful deductions, must first be addressed to the designated manager, with an option to appeal to the employer. Workers can also approach the Grievance Redressal Committee under the Industrial Relations (Central) Rules, 2026, within one year of the dispute’s cause arising.
Work From Home in Service Sector
An additional provision unique to the service sector allows employers to permit work from home, remote locations, or virtual workplaces for periods determined by the employer, subject to appointment terms or mutual agreement. This flexibility is not mirrored in the mining or manufacturing sector orders.
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