An employee standing order is a formal set of written rules and regulations that govern the terms and conditions of employment in industrial establishments. In India, these are mandated by the Industrial Employment (Standing Orders) Act, 1946, which requires employers with a specified number of employees (typically 100 or more) to clearly define and communicate the conditions of service to their workers.
What does an employee standing order contain?
Classification of workers (permanent, temporary, apprentices, etc.)
Work hours, shifts, attendance, and leave regulations
Wages, paydays, and holiday provisions
Procedures for entry, exit, and conduct within the workplace
Processes for suspension, dismissal, or termination, and misconduct definitions
Grievance redressal and dispute resolution mechanisms
How is it used?
Employers must create and submit a draft standing order, tailored to their establishment’s needs, to a Certifying Officer (usually a labor commissioner).
The standing order, once certified, becomes legally binding on both the employer and employees.
All employees and management must follow the terms laid out in the standing orders; these become the foundational rules for workplace discipline, employee rights, and company procedures.
Certified standing orders override conflicting individual employment contracts and are enforceable in labor courts.
Why is it important?
Brings clarity, transparency, and uniformity to employment conditions.
Reduces industrial disputes and ensures workers are informed of their rights and responsibilities.
Establishes a statutory framework for the employer-employee relationship, promoting fairness and accountability in workplaces.
In summary, an employee standing order is a set of compulsory guidelines that standardize employment terms, ensure transparency, and provide legal protection to both employers and employees by defining workplace rules in detail.