Centre notifies final IR, Wage Code rules; issues Model Standing Orders
The Centre has notified final rules under the Industrial Relations Code and Code on Wages, along with Model Standing Orders for key sectors
 "Centre notifies final IR, Wage Code rules; issues Model Standing Orders")
The Centre on Friday notified the final rules under the Industrial Relations (IR) Code, 2020 and the Code on Wages, 2019, marking another step towards operationalising the four labour codes that were passed by Parliament in 2019 and 2020 but are yet to be fully implemented across the country. The labour ministry also notified the Model Standing Orders, 2026, for the mining, manufacturing and services sectors.
The final rules come after the ministry published draft versions in December 2025 and invited stakeholder comments. The government said objections and suggestions received on the draft rules had been considered before finalisation.
“The notification of Central Rules today under the Industrial Relations Code and the Code on Wages is an important step in moving the labour codes from policy to implementation. However, it is equally important to recognise that these Central Rules will largely apply to establishments where the Central Government is the ‘appropriate government’ — such as telecom, banking and insurance, mines, oilfields, major ports, air transport, along with central public sector undertakings and their contractors,” said Puneet Gupta, partner, People Advisory Services-Tax, EY India. He added that the final central rules are also likely to become the basis for states to finalise their own rules under the labour codes.
The Wage Code rules lay down norms for fixation and revision of minimum wages and variable dearness allowance (VDA), with VDA to be revised twice a year based on the consumer price index for industrial workers. The rules retain the eight-hour workday and 48-hour weekly cap, mandate weekly rest days with overtime for work on rest days, and formalise digital compliance by allowing electronic maintenance of registers, wage slips, claims and notices. Employers will also have to preserve wage, overtime and attendance records for five years.
Gupta said the Wage Code rules bring “clearer structure to core areas”, including fixing minimum wages, capping normal working hours at 48 hours per week, and laying down processes for payroll-related aspects including deductions.
“They also formalise the responsibility of the principal employer to pay minimum statutory bonus to contract labour, standardise formats for various registers (employee register, salary register, attendance register) and wage slips, and introduce a defined nomination framework for employees,” he added.
The IR Code rules lay out procedures for constitution of works committees, dispute resolution, recognition of negotiating unions and settlement agreements. The rules provide for digital processes in conciliation proceedings, notices and election procedures for worker representatives.
Gupta said the focus of the IR Code rules was on strengthening workplace processes, particularly grievance redressal mechanisms and clearly defined standing orders, which could bring greater structure and predictability to workforce management issues. “That said, the broader impact will depend on how closely State Rules align with the Central framework — since any divergence could lead to differing compliance approaches for organisations operating across multiple States,” he noted.
The accompanying Model Standing Orders classify workers into categories including permanent, temporary, apprentices, probationers, badlis, fixed-term employees and casual workers. They also spell out rules around attendance, leave, shift work, misconduct and disciplinary proceedings.
Compared to the older standing orders framework of 1946, the new model orders incorporate provisions for fixed-term employment, electronic notices and wage records, Internal Complaints Committees for sexual harassment cases, and grievance redressal committees under the IR Code.
The new standing orders also require workers’ records to include details such as mobile number, email address, ESI number, gratuity nominee and training history, reflecting a greater emphasis on digitised employment records.
Gupta said the notification of Model Standing Orders is a “notable development” as they provide organisations with a baseline template on matters such as worker classification, communication of service conditions, attendance and disciplinary procedures.
“For organisations, these serve as a practical reference point to codify workplace rules more clearly and consistently, especially in the absence of customised standing orders,” said Gupta.
The ministry is yet to notify the final rules for the remaining two Codes — the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020.