Statutory Context
- Legacy Position: The Industrial Employment (Standing Orders) Act, 1946 did not recognize remote work.
- Legal Breakthrough: The Industrial Relations Code, 2020 introduces Draft Model Standing Orders (Services Sector, 2021) which explicitly recognize Work From Home (WFH).
- Implementation Timeline: Full enforcement of Labour Codes expected by April 2026.
Key Legal Provisions
- Rule 10, Draft Model Standing Orders (Services Sector, 2021): Employers may allow WFH for specified periods, subject to:
- Appointment terms in the offer letter.
- Mutual agreement between employer and worker.
- Certification Requirement: WFH becomes enforceable only once Standing Orders are certified under Section 30 of the IR Code.
Applicability
| Feature | Legacy Law (1946 Act) | New IR Code (2026) |
| Threshold | 100+ workers | 300+ workers |
| WFH Mention | None | Explicitly included (Services Sector) |
| Customization | Limited | Employers can adapt Model Orders |
- Establishments with less than 300 workers are not legally bound but may adopt Model Standing Orders voluntarily.
Action Points for HR & Compliance Teams
1. Define Working Hours
- No statutory “Right to Disconnect” yet.
- Clearly specify working hours and on-call periods to prevent overwork claims.
2. Equipment & Liability
- Clarify responsibility for internet costs, laptops, and maintenance.
- Define liability for damage to company equipment at home.
3. Data Security & Misconduct
- Unauthorized IT access is listed as misconduct under Model Standing Orders.
- Include explicit clauses on data protection for remote work.
4. Occupational Safety
- OSH Code, 2020 requires safe working conditions.
- Liability for home-based injuries is untested; best practice is to require employees to maintain ergonomic workspaces.
Compliance Checklist
- [ ] Review appointment letters for WFH clauses.
- [ ] Draft mutual WFH agreements.
- [ ] Update Standing Orders with Rule 10 provisions.
- [ ] Submit Standing Orders for certification under Section 30 IR Code.
- [ ] Train HR and managers on WFH obligations.
Disclaimer
This advisory is for educational purposes only. Employers must ensure Standing Orders are certified under Section 30 of the Industrial Relations Code, 2020 and harmonized with applicable State rules. Consult a qualified labour law advisor before implementation.