On 8 May 2026, the Ministry of Labour & Employment quietly published one of the most significant updates to Indian workplace regulation in recent years. The Model Standing Orders 2026, issued under the Industrial Relations Code, 2020, now govern how workplaces must operate across two of India's largest sectors — Manufacturing and Services.
Whether you are an HR professional, a business owner, or a salaried employee, these rules directly affect you. Here is everything you need to know.
🏭 What Are Model Standing Orders?
Standing Orders are the foundational rules that govern the relationship between an employer and worker inside an industrial establishment. They cover everything from how you are classified as an employee, to how you get paid, transferred, disciplined, or let go.
The 2026 edition modernises these rules for today's workplace — recognising remote work, digital attendance, electronic wages, and cyber misconduct for the first time.
👷 Who Does This Apply To?
These orders cover workers in Manufacturing (Schedule B) and Service sector establishments (Schedule C) including IT companies, BPOs, and other service industries across India.
📋 7 Types of Workers — Now Clearly Defined
The law recognises seven categories of workers:
Permanent — completed 6 months of probation successfully. Temporary — engaged for work that is limited in duration. Probationer — on trial for a permanent post; probation is 6 months, extendable by 3 months. Apprentice — under the Apprenticeship Act, 1961. Badli (Substitute) — replaces an absent permanent worker; becomes permanent after 1 year of continuous service. Fixed-Term — hired on a written contract for a defined period. Casual — engaged for work that is casual in nature.
💡 Big win for fixed-term workers: They now get the same wages, allowances, and statutory benefits as permanent workers on a proportional basis — and gratuity after just one year of service.
🪪 ID Cards Are Mandatory
Every worker must be issued an identity card carrying their name, designation, employee number, blood group, contact details, emergency contact, and photograph. The card must be worn during working hours and surrendered on exit. Misuse or transfer of the card to another person is prohibited.
🏠 Work From Home Gets Legal Recognition
For the first time, the Service Sector Standing Orders formally recognise work from home, remote location, and virtual workplace as valid modes of employment. This is subject to the terms of appointment or agreement between employer and worker — a landmark acknowledgment of how modern India works.
⏰ Shifts, Hours & Attendance
Working hours must be publicly displayed on notice boards, electronic boards, and company portals in Hindi, English, and the local language.
Any change in shifts — whether starting, stopping, or altering — requires 21 days' prior written notice to the affected workers, with a copy to the registered trade union. Emergency changes are exempt only if done in consultation with the Grievance Redressal Committee.
Attendance is to be recorded through biometrics or ID card systems. Late arrivals need the manager's permission. Habitual late-coming attracts wage deductions.
📅 Leave Rules — Know Your Entitlements
Leave is not an automatic right. Key rules:
- Apply at least 7 days in advance
- Casual leave: maximum 10 days per year, not more than 3 consecutive days at a time (except in case of illness)
- Leave extensions must be applied for before the original leave expires
- No paid employment or business activity is permitted while on leave
- Refusal of leave must be communicated in writing with reasons
💰 Wages — Timelines and Protections
All wages must be paid electronically — by bank transfer or cheque. No cash payments.
Payment deadlines are clearly fixed:
- Daily workers → end of shift
- Weekly workers → last working day of the week
- Fortnightly workers → within 2 days of fortnight end
- Monthly workers → by the 7th of the following month
On resignation, dismissal, or retrenchment, all dues must be cleared within 2 working days. Wage rates must be displayed publicly. Deductions are permitted only as authorised under the Code on Wages, 2019.
🔄 Transfers — Your Rights Are Protected
Every employer must have a published transfer policy on the HR portal. Transfers cannot reduce your pay, grade, or seniority. You can only be transferred to a role you are capable of performing.
Inter-state transfers require your consent (or an express clause in your appointment letter). For outstation transfers, you are entitled to travel allowance covering full transport costs plus 50% extra for incidental expenses.
Service sector employers get an additional provision — workers may be deputed to affiliates or clients, including postings abroad.
🚨 Misconduct — 27 Offences Now Listed
The law lays out an exhaustive list. Here are the key ones:
- Theft, fraud, bribery
- Wilful insubordination
- Habitual absenteeism or late attendance
- Sleeping on duty
- Causing damage to employer property
- Leaking trade secrets or confidential information
- Filing false reimbursement claims
- Threatening or assaulting colleagues or superiors
- Going on illegal strike without 14 days' notice
- Sexual harassment (under the POSH Act, 2013)
🖥️ Service sector exclusive: Unauthorized access to the employer's or client's IT systems and computer networks is now explicitly listed as misconduct — a clear signal to the tech industry.
⚖️ Disciplinary Process — Fair and Time-Bound
The rules lay out a structured, worker-friendly process:
Suspension: Can be ordered pending inquiry. Reasons must be given in writing within one week.
Subsistence allowance during suspension:
- 50% of last drawn wages for the first 90 days
- 75% thereafter, if the delay is not the worker's fault
Inquiry: Must be completed within 90 days. The worker has the right to be represented by a trade union office-bearer or a co-worker of their choice. Proceedings can be recorded in Hindi, English, or the local State language — whichever the worker prefers.
If found guilty: Punishment can range from a fine or increment stoppage to demotion or dismissal.
If found innocent: Full back wages are restored, minus subsistence allowance already paid.
Appeal: Must be filed within 21 days of receiving the order. The appellate authority must decide within 15 days.
Sexual harassment complaints are handled exclusively by the Internal Complaints Committee under the POSH Act.
📣 Grievance Redressal
Workers can raise complaints about unfair treatment directly with the manager, with a right of appeal to the employer. For formal disputes, an application can be filed before the Grievance Redressal Committee within 1 year of the cause arising.
📋 For Employers — Key Compliance Points
- Adopt these orders and notify the Certifying Officer electronically
- Once adopted, the orders apply to all your establishments across India, regardless of location
- Maintain a detailed Service Card (Form II) for every worker covering employment history, leave, promotions, and disciplinary records
- Issue a service certificate within 10 days of any separation
- Display the full Standing Orders in Hindi, English, and local language on all notice boards and your HR portal
- The Internal Complaints Committee must submit an annual report to the employer and the District Officer
📌 In Summary
The Model Standing Orders 2026 bring Indian labour law firmly into the 21st century — recognising remote work, mandating digital payments, protecting fixed-term workers, and setting clear timelines for discipline and grievance resolution. For employees, it is a stronger safety net. For employers, it is a clear compliance roadmap.
📄 The full official notification is available at: https://egazette.gov.in/(S(hhwra13mjdfnpju3xiwnu2yp))/ViewPDF.aspx
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