The Ministry of Labour and Employment has published new Model Standing Orders, 2026, in the Gazette of India, introducing comprehensive workplace regulations for industrial establishments across the mining, manufacturing, and services sectors. These orders, enacted under the Industrial Relations Code, 2020, supersede the erstwhile Industrial Employment (Standing Orders) Central Rules, 1946, and come into immediate effect.
Coverage and Worker Classification
The newly notified rules apply to industrial establishments operating within the mining, manufacturing, and service sectors, as detailed in their respective schedules. Employers are required to electronically notify the certifying officer upon adoption of these model orders. Once notified, these orders automatically extend to all units of an establishment, irrespective of their geographical location.
Information was available with The Chenab Times indicating that the new regulations classify workers into seven distinct categories. These include permanent workers, engaged on a permanent basis or having completed six months of satisfactory probation; temporary workers, hired for tasks of a temporary nature; apprentices undergoing training as per the Apprenticeship Act, 1961; probationers, provisionally employed in permanent vacancies pending confirmation; badli or substitute workers, engaged to fill the place of temporarily absent permanent or probationer workers; fixed-term employees, hired under a written contract for a specific duration; and casual workers, employed for incidental or casual work.
Enhanced Protections for Fixed-Term Employees
A significant aspect of the new rules addresses fixed-term employment. The orders stipulate that fixed-term employees are entitled to wages, allowances, and working hours equivalent to those of permanent workers performing similar duties. They are eligible for statutory benefits on a proportionate basis and qualify for gratuity after completing at least one year of service, calculated at 15 days’ wages for each completed year. Crucially, the conclusion of a fixed-term contract will not be construed as retrenchment under the Industrial Relations Code.
Mandatory Identity Cards and Attendance Systems
All workers must be issued an identity badge or card containing essential details such as their name, designation, employee number, blood group, contact information, emergency contact, and a photograph. This card must be worn during working hours and surrendered upon cessation of employment, with the use of another person’s card being strictly prohibited. Attendance recording is mandated at the commencement and conclusion of each shift, utilizing systems such as identity cards, biometrics, or other officially notified methods.
Work Hours, Shifts, and Leave Entitlements
Employers retain the discretion to implement multiple shifts. However, any alteration, discontinuation, or recommencement of a shift necessitates a 21-day prior written notice. This notice must be prominently displayed and communicated to the secretary of any existing registered trade union. Exceptions to this notice requirement apply only in genuine emergencies or when changes are dictated by government orders, settlements, or awards.
Paid leave provisions are governed by the Occupational Safety, Health and Working Conditions Code, 2020. Workers are entitled to up to 10 days of casual leave per calendar year, permissible in maximum blocks of three days at a time, barring illness or unforeseen circumstances. Leave applications require a seven-day advance submission, with any refusal or postponement needing a written explanation. Engaging in paid employment during leave is prohibited.
Timely Wage Payments and Service Records
The new orders detail specific timelines for wage disbursements based on employment type. Daily wage earners are to be paid at the end of each shift, weekly workers by the end of the week, fortnightly workers within two days of the fortnight’s close, and monthly workers by the seventh day of the subsequent month. All wage payments must be processed electronically into 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 authorised under the Code on Wages, 2019.
Each establishment is obligated to maintain a service card for every worker, either electronically or manually. This record includes details on date of birth, employment history, qualifications, dependents, provident fund and ESI numbers, disciplinary actions, promotions, and retirement dates. Upon leaving employment, workers are entitled to a service certificate within 10 days, outlining their job nature, designation, and duration of service.
Retirement Age, Transfer Policies, and Medical Rights
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.
Establishments must maintain a clear transfer policy accessible on their HR portal. Transfers may occur between departments, stations, or units under the same employer, provided they do not negatively impact wages, grade, or service conditions. Transfers require the worker to be capable of performing the new role. Inter-state transfers require explicit worker consent or a relevant clause in the appointment letter. All transfers mandate adequate notice, joining time, and travel allowance, including 50 per cent for incidental expenses.
Workers sustaining injuries during employment are to receive immediate medical aid at the employer’s expense. New recruits must undergo a medical examination prior to initial appointment, arranged and funded by the employer. Employees diagnosed with infectious or contagious diseases must report it to their manager and remain absent until medically cleared. During this period, they are considered on paid leave to the extent of their available leave balance. Concealing such an illness constitutes misconduct.
Definition and Handling of Misconduct
Misconduct is broadly defined to encompass acts such as theft, fraud, dishonesty, bribery, wilful disobedience of lawful orders, habitual lateness, drunkenness, fighting, sleeping on duty, deliberate work slowdowns, damage to employer property, threats or assault, illegal strikes without proper notice, disclosure of confidential information, and false reimbursement claims. Sexual harassment, as defined by the Sexual Harassment of Women at Workplace Act, 2013, is also explicitly included. For the service sector, unauthorised access to IT or computer networks of the employer or client is also classified as misconduct.
Disciplinary Procedures and Grievance Redressal
Workers facing misconduct charges can be suspended pending an inquiry, which should ordinarily conclude within 90 days. During suspension, a subsistence allowance of 50 per cent of the last drawn wages is provided for the first 90 days, increasing to 75 per cent if delays are not attributable to the worker. Representation by a trade union official or a co-worker is permitted during inquiries. Proceedings can be conducted in Hindi, English, or the regional language at the worker’s preference. If exonerated, the worker receives full wages for the suspension period, less the subsistence allowance paid. Appeals against punishment orders must be filed within 21 days, with the appellate authority required to decide within 15 days.
Internal Complaints Committees must be formed in all industrial establishments as per the Sexual Harassment of Women at Workplace Act, 2013, submitting annual reports to the employer and district officer. Employers must also include data on sexual harassment cases in their annual reports.
Workplace grievances, including those concerning unfair treatment or wrongful recovery of dues, are to be first addressed to the designated manager, with an appeal option 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.
Work-From-Home Provisions in Service Sector
The service sector orders include a specific provision allowing employers to permit employees to work from home, remotely, or from a virtual workplace, for periods determined by the employer, subject to appointment terms or mutual agreement. This provision is unique to the service sector orders and is not present in the mining or manufacturing schedules.
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