Standing Orders and HR Policies under Industrial Relations Code 2020: What Can Employers Change?

Once Model Standing Orders become applicable or Certified Standing Orders come into force under the Industrial Relations Code, 2020, the short answer is Yes. An employer may issue new operational policies, procedures, or administrative regulations. However, those rules cannot operate as a parallel set of Standing Orders.

This blog explores the legal boundaries of employer rulemaking, the crucial distinction between supplementary policies and impermissible modifications, and the Supreme Court jurisprudence that reinforces the statutory authority of Certified Standing Orders.

The Current Framework: Model Standing Orders, 2026

On 8 May 2026, the Ministry of Labour and Employment notified the Model Standing Orders, 2026 under Section 29 of the Industrial Relations Code, 2020, alongside the Industrial Relations (Central) Rules, 2026. The notification supersedes the earlier Industrial Employment (Standing Orders) Central Rules, 1946 insofar as they related to model standing orders, and prescribes separate model standing orders for the mining, manufacturing, and services sectors.

The notification of a dedicated services-sector model is an important acknowledgement that modern workplace governance now extends to office-based, technology-enabled, hybrid, and client-facing businesses. The Services Sector Model Standing Orders, 2026 expressly recognise work from home, remote location, and virtual workplace arrangements that is one of the most contemporary features of the new framework.

Legal Conclusion: The Core Principle

An employer may issue new policies, procedures, or administrative regulations after Model Standing Orders apply or after its own Standing Orders are certified. But those rules cannot operate as a parallel set of Standing Orders. To be valid, such policies must:

• Meet, explain, or comply with applicable Standing Orders;
• Cover a subject genuinely not covered by the Standing Orders;
• Not contradict, dilute, vary, or worsen service conditions;
• Not create a new misconduct, penalty, or disciplinary procedure outside the Standing Orders.

If the change affects a condition governed by Standing Orders, the proper route is modification under Section 35 of the Industrial Relations Code, 2020.

When Model Standing Orders Apply

Under Section 29(2) of the Industrial Relations Code, Model Standing Orders are deemed adopted until certified Standing Orders come into force. Employers must electronically notify adoption to the certifying officer.

Crucially, if the certifying officer does not raise any observation within thirty (30) days from receipt of the employer’s intimation, the Model Standing Orders are deemed to have been certified. This introduces a streamlined “deemed certification” mechanism that replaces the earlier, more cumbersome certification process.

Section 35 applies even during this interim period. Employers cannot bypass certification by calling a change a “policy,” “requirement,” or “management rule.”

The Unshakeable Core: What Cannot Be Changed by HR Policy

Under the Industrial Relations Code, 2020, certain matters referred to as Standing Orders subjects are the exclusive domain of Standing Orders. HR policies or circulars cannot unilaterally alter:

• Classification of workers (permanent, temporary, apprentices, probationers, fixed-term employees, badlis, and casual workers);
• Hours of work, holidays, paydays, and wage rates;
• Shifts, attendance, and late coming rules;
• Leave and holiday entitlements;
• Termination and notice periods;
• Suspension, dismissal, and misconduct definitions;
• Penalties and disciplinary procedures;
• Grievance redress provisions.

Unsafe examples include: extending probation, reducing notice period, adding new responsibilities, altering penalties, changing leave rules, or creating a different disciplinary appeal process. The Services Sector Model Standing Orders, 2026 prescribe a probationary period of six months, extendable by up to three months based on performance assessment.

What Is Generally Permissible

Operational policies are valid only if they supplement and not alter the Standing Orders. Permissible examples include:

• Biometric attendance process consistent with existing rules;
• Leave application forms and workflow without changing entitlement;
• Personal Protective Equipment (PPE), safety, and emergency SOPs;
• Cybersecurity instructions consistent with Standing Orders;
• More beneficial medical, insurance, or leave facilities.

Special Warning on Misconduct

The Model Standing Orders, 2026 already cover a broad misconduct list, including theft, fraud, insubordination, habitual absence, violence, disclosure of confidential information, safety violations, false reimbursement claims, unauthorized access of IT systems, and sexual harassment under the POSH Act. The Services Sector Model Standing Orders, 2026 materially broaden the misconduct framework to expressly include unauthorised access to any IT system or computer network and false reimbursement claims.

A policy may explain expected conduct, but it should not create a brand-new dismissible offence outside the Standing Orders.

Supreme Court Guidance

Case	Principle
Sudhir Chandra Sarkar v. Tata Iron & Steel Co. Ltd., (1984) 3 SCC 369 – Supreme Court of India	Certified Standing Orders have statutory force and become part of the terms and conditions of service between employer and employee, governing their relationship. The Court held that the Act was “an attempt at imposing a statutory contract of service between two parties unequal to negotiate on the footing of equality.”
Bhartiya Kamgar Karmachari Mahasangh v. M/s. Jet Airways Ltd., 2023 INSC 646 – Supreme Court of India	Reaffirmed that certified standing orders have statutory force and that a private agreement/settlement between parties cannot override the Standing Orders. The Court relied on the principle established in Sudhir Chandra Sarkar and held that any condition of service inconsistent with certified standing orders would not prevail.
Union of India v. K. Suri Babu, 2023 INSC 1033 – Supreme Court of India	The Court held that disciplinary proceedings against a workman must be governed by the Certified Standing Orders, not by separate service rules, reaffirming that Standing Orders prevail over inconsistent administrative arrangements.

Precise Procedure for Modification

• Step 1: Identify whether the proposal affects a Standing Orders subject.
• Step 2: Observe the 6-month rule under Section 35 (unless modification is based on agreement).
• Step 3: File notification application with certifying officer, proposed clause, reasons, and union details.
• Step 4: Consultation and certification by certifying officer.
• Step 5: Modified Standing Orders come into force.
• Step 6: Give Section 40 notice where independently required.

Section 40 Notice of Change

Under Section 40 of the Industrial Relations Code, 2020, employers must give 21 days’ notice before changing specified service conditions in the Third Schedule, covering wages, PF/ESIC contributions, hours, leave, shifts, and grievance mechanisms. Section 40 requires 21 days’ notice before changing specified service conditions in the Third Schedule. Changes made without such notice are not binding upon the workers.

Consequences of Unilateral Change

Standing Orders do not freeze the establishment forever, but they do prevent employers from rewriting statutory service conditions through circulars, handbooks, appointment letters, or management regulations. Employers may issue supplementary policies, but any change to Standing Orders subjects must follow Section 35 modification and Section 40 notice requirements.

Key Takeaways

• Model Standing Orders, 2026 have been notified for mining, manufacturing, and services sectors, with dedicated provisions for remote work and IT-sector flexibility.
• Industrial Relations (Central) Rules, 2026 operationalise the standing orders framework with a “deemed certification” mechanism.
• Employers adopting Model Standing Orders must notify the certifying officer; if no objections within 30 days, orders are deemed certified.
• Certified Standing Orders have statutory force and override inconsistent private agreements.
• Employers may issue operational policies only if they supplement and not alter the Standing Orders.
• Changes to Standing Orders subjects require Section 35 modification with mandatory 6-month cooling period.
• Section 40 requires 21 days’ notice for changes to specified service conditions; changes made without notice are not binding.
• Unilateral changes that contradict Standing Orders are not binding on workers.

Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy of the information, the provisions of the Industrial Relations Code, 2020, the Model Standing Orders, 2026, and any related notifications are subject to official amendments, judicial interpretations, and sector-specific applications. Employers, institutions, and individuals are strongly advised to consult qualified legal professionals or certified compliance experts for specific guidance tailored to their circumstances. We do not accept any liability for any loss, damage, or legal consequence incurred as a result of reliance on the information contained herein.