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Section 28: Standing orders applicability & preparation

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter IV: Standing Orders
Competent Labour Forum
Act No. 35 of 2020
Section 27 All 104 Sections of Industrial Relations Code, 2020 Section 29

Legal Commentary & Landmark Judgments: Section 28

Section 28 of the Industrial Relations Code, 2020 governs the application of Chapter IV (Standing Orders), raising the applicability threshold to industrial establishments employing 300 or more workers, while reserving executive power for the Appropriate Government to lower the threshold via gazette notification.

  • The 300-Worker Headcount Applicability Threshold: Section 28(1) provides that Chapter IV shall apply to every industrial establishment wherein three hundred or more workers are employed, or were employed on any day of the preceding twelve months, fundamentally restructuring the coverage from the earlier 100-worker threshold under the 1946 Act.
  • Executive Power to Lower Applicability Thresholds: Section 28(1) proviso empowers the Appropriate Government, after giving not less than two months' notice of its intention by notification in the Official Gazette, to apply the provisions of Chapter IV to any industrial establishment employing such lesser number of workers as specified.
  • Transitional Savings of Pre-Existing Certified Orders: Existing standing orders certified under the Industrial Employment (Standing Orders) Act, 1946 remain legally valid and operative under transitional provisions, continuing to bind the establishment until formally amended or replaced under Section 36.
Key Landmark Precedents:
  • Western India Match Co. Ltd. (WIMCO) v. Workmen (1974) 3 SCC 330: The Supreme Court held that the terms of employment specified in standing orders operate as statutory conditions of service that supersede inconsistent terms in private contracts of employment, ensuring uniform industrial discipline.
  • Sudhir Chandra Sarkar v. Tata Iron and Steel Co. Ltd. (1984) 3 SCC 369: The Supreme Court affirmed that certified standing orders possess statutory force and bind both employer and workers, creating legally enforceable rights that cannot be unilaterally waived or contracted out of.
  • Excel Wear v. Union of India (1978) 4 SCC 224: A Constitution Bench held that legislative classification based on numerical worker thresholds in industrial establishments is constitutionally valid and reflects legislative balancing of industrial flexibility and employee protections.
Courtroom Practice & Strategic Litigation Guidance:

Industrial establishments employing 300 or more workers must immediately initiate the preparation of draft standing orders under Chapter IV. Establishments with between 100 and 299 workers previously certified under the 1946 Act must monitor State Gazette notifications: while the Central threshold is 300, many State Governments invoke the Section 28(1) proviso to maintain a 100-worker threshold. Existing certified standing orders continue to govern disciplinary actions until new orders are certified.

Section 27 All 104 Sections of Industrial Relations Code, 2020 Section 29