New Delhi: The Ministry of Labour and Employment has published the Model Standing Orders, 2026, in the Gazette of India, laying down comprehensive workplace rules for industrial establishments across three major sectors — mining, manufacturing and services. The orders, issued under Section 29(1) of the Industrial Relations Code, 2020, come into force immediately and supersede the old Industrial Employment (Standing Orders) Central Rules, 1946.
Who is covered?
The new rules apply to industrial establishments in the mining sector under Schedule A, the manufacturing sector under Schedule B, and the service sector under Schedule C. Employers who adopt these model orders must notify the certifying officer electronically, after which the orders automatically apply to all units of that establishment, regardless of location.
Workers classified into 7 categories
Under the new orders, workers are placed in seven categories. A permanent worker is one engaged on a permanent basis or someone who has satisfactorily completed six months of probation. A temporary worker is hired for work that is essentially temporary in nature. An apprentice is someone undergoing training under the Apprenticeship Act, 1961.
A probationer is provisionally employed to fill a permanent vacancy but has not yet completed six months of service. A badli or substitute worker is appointed in place of a permanent worker or probationer who is temporarily absent. Fixed term employment refers to a worker hired for a defined period through a written contract. Finally, a casual worker is one engaged for work of an essentially casual or incidental nature.
Protections for contractual workers
The most significant new provision concerns fixed-term employees. The orders make clear that their wages, allowances and working hours cannot be less than those of permanent workers doing the same or similar work. They are entitled to all statutory benefits on a proportionate basis and are eligible for gratuity if they serve for at least one year, at the rate of 15 days’ wages for every completed year of service. Importantly, the end of a fixed-term contract will not be treated as retrenchment under the Industrial Relations Code.
ID cards and attendance rules
Every worker must be issued an identity badge or card containing their name, designation, employee number, blood group, contact details, emergency contact information and a recent photograph. Workers must wear this card during working hours and surrender it upon leaving employment. Using another person’s card is strictly prohibited. Attendance must be recorded at the start and end of every shift using identity cards, biometrics or any other notified system.
Work hours and shifts
Employers may run multiple shifts at their discretion. However, 21 days’ prior written notice is mandatory before any shift is discontinued, restarted or altered. The notice must be displayed on the notice board and, where a registered trade union exists, a copy must also be sent to the union secretary. No notice is required only in genuine emergencies, or where changes are made under a government order or a settlement or award.
Leave rights
Paid leave is governed by the Occupational Safety, Health and Working Conditions Code, 2020, while other leave is regulated by applicable law, contract, custom and usage. Casual leave of up to 10 days per calendar year is allowed, with a maximum of three days at a time, except in cases of illness or unforeseen circumstances. Leave applications must be submitted at least seven days in advance. If leave is refused or postponed, the reasons must be communicated in writing. Workers cannot take up paid employment of any kind during their leave period.
Wage payment rules
The orders prescribe specific timelines for wage payment depending on how workers are engaged. Daily workers must be paid at the end of each shift, weekly workers on the last working day of the week, fortnightly workers within two days of the end of the fortnight, and monthly workers by the 7th day of the following month. All payments must be made electronically into the worker’s bank account. Where a worker is dismissed, retrenched or resigns, all dues must be cleared within two working days. No deductions can be made from wages except those authorised under the Code on Wages, 2019.
Service records
Every establishment must maintain a service card for each worker, either electronically or manually, covering details such as date of birth, employment history, qualifications, family members, provident fund and ESI numbers, disciplinary record, promotions and superannuation date. Every worker is entitled to a service certificate within 10 days of leaving employment, covering the nature of work, designation and period of service.
Retirement age
The retirement age is whatever is mutually agreed in writing between the employer and the worker. In the absence of any such agreement, the default retirement age is 58 years.
Transfer rules
Every establishment must have a stated transfer policy, available on the HR portal. A worker can be transferred across departments, stations or establishments under the same employer, but wages, grade and service conditions cannot be adversely affected by such a transfer. The worker can only be moved to a job they are capable of performing. Inter-state transfers require either the worker’s consent or a specific clause in the appointment letter to that effect. In all cases of transfer, adequate notice, joining time and travel allowance, including 50 per cent of the allowance to meet incidental expenses, must be provided to the worker.
Medical rights
Workers injured during employment must receive immediate medical aid at the employer’s cost. All new recruits must pass a medical examination at the time of first appointment, arranged by the employer at their own expense. Workers suffering from infectious or contagious diseases must immediately inform their manager and stay away from work until formally cleared to return. During this period, the worker is treated as being on paid leave to the extent of leave with wages available to their credit. Deliberately concealing such an illness is treated as misconduct under these orders.
Misconduct defined
The orders define misconduct broadly in plain terms. It covers theft, fraud or dishonesty connected to the employer’s business or property, as well as bribery or any illegal gratification. Wilful disobedience of lawful orders from a superior, habitual lateness or absence without leave, drunkenness, fighting or indecent behaviour at the workplace, sleeping on duty and deliberate slowing down of work are all included. Causing damage to the employer’s property, threatening or assaulting colleagues, going on an illegal strike without giving 14 days’ notice, disclosing confidential information to unauthorised persons and filing false reimbursement claims are likewise treated as misconduct. Sexual harassment as defined under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 is also explicitly listed. The service sector orders additionally include unauthorised access to the employer’s or client’s IT systems or computer networks as a specific category of misconduct.
Suspension/disciplinary action
A worker facing misconduct charges may be suspended pending inquiry. The inquiry must ordinarily be completed within 90 days of suspension. During this period, workers receive a subsistence allowance equivalent to 50 per cent of their last drawn wages for the first 90 days, rising to 75 per cent thereafter if the delay in completing proceedings is not due to the worker’s own conduct. Workers have the right to be represented by a trade union official or a co-worker of their choice during the inquiry.
Proceedings may be recorded in Hindi, English or the language of the state where the establishment is located, as preferred by the charged worker. If found not guilty at the end of the inquiry, the worker is treated as having been on duty throughout the entire suspension period and is entitled to the full wages they would have received, minus the subsistence allowance already paid. A worker aggrieved by a punishment order must file an appeal within 21 days of receiving the order, and the appellate authority must pass its decision within 15 days of hearing the appeal.
Anti-sexual harassment committees
Every industrial establishment must constitute an Internal Complaints Committee in accordance with the Sexual Harassment of Women at Workplace Act, 2013. The committee must submit an annual report to the employer and the district officer. The employer is also required to include the number of sexual harassment cases filed, if any, and their disposal in the organisation’s annual report each year.
Grievance redressal
All workplace grievances, including complaints of unfair treatment or wrongful recovery of money by the employer or their agent, must first be submitted to the designated manager, with the right to appeal to the employer. Workers may also approach the Grievance Redressal Committee under the Industrial Relations (Central) Rules, 2026, and must do so within one year from the date on which the cause of the dispute first arises.
Work from home
The service sector orders include an additional provision that has no equivalent in the mining or manufacturing schedules. Employers in the service sector may permit workers to work from home, from a remote location or from a virtual workplace, for such periods as the employer determines, subject to the terms of appointment or a mutually agreed arrangement between the employer and worker.
