What Happens if an Industry Operates for 3 Years Without a Certified Standing Order? Legal Insights Needed

Dear Friends,

I want to know what will happen in the case of an industry running for more than 3 years without having any certified Standing Order. What are the legal implications of the same, and in that case, can the model Standing Order be of any use?

Regards,
Ranjeet Singh

Dear Ranjeet,

If you have more than 100 employees, you are required to obtain a standing order from the labor department. The fine can be up to Rs. 125 per day.

Thank you.

Is it compulsory to take a standing order? Because if we don't take a standing order, the central standing order is automatically applicable. Kindly provide guidance on the procedure and also share any model standing order.

The Industrial Employment (Standing Order) Act, 1946 provides a model for standing orders that can serve as a basis for your own standing orders. It is not orders per se. It will not apply automatically if you do not have your own standing orders. Therefore, it is mandatory for establishments with 100 or more workers to draft and certify their own separate standing orders.

Regards,

Madhu.T.K

As per the Industrial Standing Order, if there are over 20 employees working in the factory, the factory should have an approved standing order in accordance with the 1986 Act. This is a new amendment, so kindly ensure compliance and obtain the necessary standing order.

Thanks & Regards,
A. Ramakrishnan
Tirupur