Compliances Related to Standing Orders under the Industrial Relation (Gujarat) Rules, 2021

Background

Standing Orders under the Industrial Relations Code, 2020, as supported by the Gujarat Industrial Relations Rules, provide a clear and standardized framework for defining conditions of employment in industrial establishments. They aim to ensure transparency by prescribing uniform rules on matters such as classification of workers, work hours, discipline, and termination. This framework promotes certainty for both employers and workers, helping reduce disputes through well-defined and legally compliant service conditions.

Applicability

The Industrial Relations Code, 2020 applies uniformly across India, including Gujarat, from the date it was brought into force by the Central Government. In Gujarat, the IR Code applies to all establishments covered under the Code. Provisions relating to standing orders apply to establishments with 300 or more workers, while rules on trade unions, dispute resolution, and employer-employee relations apply broadly to all applicable industries and establishments operating within the state.

Compliance Requirements under the Rules In accordance with the Code

  1. Certification of Standing Orders in Gujarat (Section 30(2), (3), (4),(9),(10), Rule-8)

Employers adopting Central Govt. model standing orders must inform Certifying Officer (CO) electronically about adoption date. CO gives observations within 30 days; changes, if directed, must be made within 30 days. Group of employers in similar establishments may submit joint draft of standing order

(1) The employer must consult the Trade Union or negotiating body on the draft standing order and submit it, electronically or otherwise, to the certifying officer for approval.

(2) If the employer adopts the Central Government’s model standing order, it is deemed certified, and the employer must inform the certifying officer as prescribed. If there are observations, the officer may direct amendments within a specified time.

(3) Draft modifications to standing orders must be submitted within six months from the date this Chapter applies to the establishment as per Code.

(4) Draft standing orders or proposed modifications must be accompanied by prescribed details of the workers, their Trade Union, and any negotiating body.

(5) Employers of similar establishments may submit a joint draft. For such cases, “employer,” “Trade Union,” and “negotiating body” include all relevant parties from the group.

  1. Modification of Standing Order in Gujarat (Section 35, Rule 16)

Application for modification of standing order shall be submitted electronically and contain particulars of orders to be modified along with tabular statement containing details of provisions of standing order in force, and proposed modifications, reasons and details of registered Trade union(s)

1) Such tabular statement shall be signed by a person authorized by the industrial establishment or undertaking
2) Certified standing orders shall not, except on an agreement between employer and workers, or a negotiating union or a Trade Union or other representative body of the workers, be liable to modification until expiry of 6 months from date on which the standing orders or last modifications thereof came into operation. Such an agreement shall also be filed along with application for modification

     3. Payment of Subsistence Allowance in case of suspension of workers in Gujarat (Section 38)

Certified Standing Orders shall provide that where any worker is suspended pending investigation/inquiry into complaints or charges of misconduct against him, employer shall pay subsistence allowance to such worker for the period of suspension

Amount of subsistence allowance payable shall be:

    1. @ 50% of wages of the wages to which the worker was entitled to immediately preceding the date of such suspension, for the first ninety days of suspension; and
    2. @ 75% of wages for remaining period of suspension, if the delay in the completion of disciplinary proceedings against such worker is not directly attributable to the conduct of such worker.

Penalty & Punishment

U/s 86(7):  If default is made on the part of any registered Trade Union in giving any notice, every office-bearer or other person bound by the rules of the Trade Union to give or send the same, or, if there is no such office-bearer or person, every member of the executive of the Trade Union, shall be punishable with fine which shall not be less than one thousand rupees, but which may extend to ten thousand rupees and any continuing default shall be punishable with an additional penalty of fifty rupees per day so long as the default continues.

U/s 86(10): An employer who modifies his standing orders otherwise than in accordance with section 35 , shall be punishable with fine which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees and in the case of a continuing offence with an additional fine of two thousand rupees per day till the offence continues

U/s86(11): An employer who does any act in contravention of the standing orders finally certified under this Code shall be punishable with fine which shall not be less than one lakh rupees, but which may extend to two lakh rupees and

U/s 86(12): Any person who acts in contravention of Sec 86(11) and again commits the same offence, for subsequent offence he shall be punishable with fine which shall not be less than two lakh rupees, but which may extend to four lakh rupees or with imprisonment for a term which may extend to three months, or with both.

U/s 86(20): Any person who contravenes any other provision of this Code not covered under sub-sections (1) to (19) or the rules or regulations framed under this Code shall be punishable with fine which may extend to one lakh rupees

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