Thread by @someshjha7

The government’s proposed labour law changes will facilitate easier dismissal of workers as companies employing up to 300 workers will not be required to frame standing orders for its workforce. A thread on the importance of standing orders:

A standing order is a legally binding collective employment contract and holds significance as it contains key work-related terms and conditions and is meant to prevent arbitrary dismissal of employees.

Such orders are compulsory for every firm hiring at least 100 workers at present and the government has proposed increasing the threshold for the first time to 300 workers.

The government has sought to follow the model adopted by the Maharashtra government to propose that standing orders will not require certification from the government, in case firms decide to follow the model standing order, which will be notified by the Centre.

The standing order states the rights and liabilities of employers and workers in case of closure of a unit, conditions for terminating employment or suspending workers for misconduct, apart from informing employees about the means of redressing unfair treatment by the employer.

Standing orders become ever more important in India where two-thirds of the workforce employed on regular salary do not have a written contract as it is not mandatory under any labour law.

Though the government has proposed appointment letters for all workers, it is only stated as a “duty” of employers and there is no penal provision for companies if they don’t follow this norm.

Experts said standing orders deter companies from dismissing workers arbitrarily, as it acts like a collective rights document and there are instances where the courts have reinstated workers who have moved court basis the standing order.