Standing Orders in Factories: Applicability, Certification and HR Responsibilities

Standing Orders form the backbone of discipline, service conditions, and workplace governance in Indian factories. Yet, in practice, many establishments either treat them as a one-time compliance document or fail to align daily HR actions with what is written in the Standing Orders.

For factory HR teams, Standing Orders are not merely a legal formality. They are a binding rulebook governing how employees are classified, disciplined, transferred, suspended, or terminated. Any deviation—intentional or accidental—can quickly escalate into industrial disputes or legal challenges.

This article explains when Standing Orders apply, how they are certified, and what HR must do to manage them effectively.

What Are Standing Orders

Standing Orders are written rules defining conditions of employment for workmen in industrial establishments. They bring clarity and uniformity to matters that otherwise lead to ambiguity, discretion, and conflict.

They typically cover:

• Classification of workmen

• Working hours, shifts, and attendance

• Leave and holidays

• Misconduct and disciplinary procedures

• Suspension, termination, and discharge

• Grievance handling mechanisms

Once certified, Standing Orders acquire statutory force and override inconsistent internal policies.

Applicability of Standing Orders

Standing Orders apply to factories and industrial establishments meeting the prescribed threshold.

When Are Standing Orders Mandatory

• Applicable to industrial establishments employing the prescribed number of workmen (as notified by the appropriate government)

• Covers permanent, probationary, temporary, and other categories of workmen

• Managerial and supervisory employees (beyond wage thresholds) are generally excluded

If an establishment does not have certified Standing Orders, the Model Standing Orders notified by the government automatically apply.

Model Standing Orders vs Certified Standing Orders

Model Standing Orders

• Standardised rules notified by Central or State Government

• Apply by default where no certified Standing Orders exist

• Generic in nature and not tailored to organisational realities

Certified Standing Orders

• Drafted by the employer

• Customised to the factory’s operations, shifts, and workforce structure

• Approved by the Certifying Officer after due process

• Legally binding on both employer and workmen

From an HR perspective, certified Standing Orders provide far better operational clarity than relying on Model Standing Orders.

Certification Process: What HR Must Know

The certification process is structured and consultative.

Key Steps

1. Draft Standing Orders aligned with law and operational needs

2. Submit draft to the Certifying Officer

3. Share draft with trade unions or workmen representatives

4. Address objections and suggestions

5. Obtain certification with or without modifications

6. Display certified Standing Orders prominently in the factory

HR plays a central role in coordinating inputs, clarifying intent, and ensuring compliance during this process.

HR Responsibilities After Certification

Certification is not the end—it is the beginning of disciplined application.

Day-to-Day HR Responsibilities

• Ensure HR policies and SOPs align with Standing Orders

• Train supervisors and line managers on applicable clauses

• Apply disciplinary procedures exactly as prescribed

• Avoid informal or ad-hoc punishments

• Refer to Standing Orders during domestic enquiries

• Update Standing Orders when operational changes occur

Any action inconsistent with Standing Orders is vulnerable to legal challenge.

Common Compliance Gaps Seen in Factories

Despite having certified Standing Orders, factories often face issues due to:

• Outdated Standing Orders not reflecting current practices

• Supervisors unaware of prescribed procedures

• Disciplinary actions taken without following enquiry process

• Parallel HR policies contradicting Standing Orders

• Poor communication to new or contract workmen

HR must proactively audit and close these gaps.

Relationship Between Standing Orders and Other HR Documents

Standing Orders take precedence over:

• HR manuals

• Employee handbooks

• Internal circulars

Where inconsistencies exist, Standing Orders prevail for workmen. HR must therefore treat them as the primary governance document for factory employees.

Conclusion

Standing Orders are the foundation of fair, consistent, and legally defensible HR practices in Indian factories. For HR teams, their real value lies not in certification, but in disciplined, everyday application.

Factories that respect and operationalise their Standing Orders experience fewer disputes, stronger managerial credibility, and smoother industrial relations. HR’s role is to ensure Standing Orders remain alive, relevant, and faithfully followed.

🗹 Standing Orders – HR Action Checklist

🗹 Verify applicability based on workforce strength and category
🗹 Ensure certified Standing Orders exist or Model Standing Orders apply
🗹 Align HR policies and SOPs with Standing Orders
🗹 Train supervisors and managers on key clauses
🗹 Follow prescribed disciplinary procedures strictly
🗹 Display Standing Orders prominently in the factory
🗹 Review Standing Orders periodically for relevance
🗹 Initiate amendment process when operations change

Standing Orders – HR Reference Table

Conclusion--

Effective labour law compliance depends on how well HR operations, payroll, and business processes work together. When compliance is embedded into everyday workflows, organisations reduce risk, improve accuracy, and build sustainable governance systems. HR teams that prioritise integration over isolation are better positioned to manage compliance confidently and consistently.