INDIA Trends and Developments Contributed by: Preetha Soman, Madhur Khandelwal and Aishwarya Maria Manjooran, JSA Advocates & Solicitors
rotate annually between a worker representative and an employer representative. The IR Code also institutionalises the GRC as the first step in the dispute resolution ladder. An aggrieved worker must typically approach the GRC before esca - lating a dispute to conciliation or a tribunal. The GRC is also statutorily bound to complete its pro - ceedings within 30 days of receiving a complaint. This necessitates the need to have investigation protocols ready to deploy immediately. This move brings about much needed clarity and structure as to the handling of HR investigations and internal grievances in a trans - parent and time-bound manner, which was optional in the earlier regime. Standing orders and disciplinary inquiries Perhaps the most significant development for HR investigations is the change in the applicability of standing orders. There was ambiguity previously regarding the applicability of standing orders to com - mercial establishments and IT/ITeS companies, which has now been clarified by the IR Code. The IR Code raises the threshold for mandatory certi - fied standing orders from 100 to 300 workers. For establishments covered by standing orders (either certified or model), the disciplinary inquiry process is no longer vague. The Model Standing Orders under the IR Code generally prescribe the following. • Charge sheet – a mandatory requirement to serve a charge sheet setting out the misconduct clearly. • Subsistence allowance – if an employee is sus - pended pending inquiry, the IR Code mandates payment of a subsistence allowance (typically 50% of wages for the first 90 days, rising to 75% there - after if the delay is not attributable to the worker). • 90-day limit – there is a strong statutory push (reflected in the Model Standing Orders) to com - plete disciplinary inquiries within 90 days. Failure to do so not only increases the financial burden (higher subsistence allowance) but may also be viewed adversely by tribunals as “victimisation” through delay.
Whilst the Model Standing Orders prescribe the above requirements, they are yet to be brought into effect, but given the implementation of the Labour Codes, the Model Standing Orders are expected to be brought into effect soon. However, until such time that the rules under the IR Code are enacted and the Model Standing Orders thereunder come into effect, employers will need to continue relying upon the Model Standing Orders under the erstwhile Industrial Employment (Standing Orders) Act, 1946. Key strategic takeaways for 2026 • Institutionalise the GRC – the Grievance Redressal Committee is no longer optional. It is the first line of defence. A functioning GRC that resolves worker disputes within the statutory 30-day window can prevent minor grievances from escalating into costly tribunal litigation. • The “90-day” discipline – with the Model Stand - ing Orders (as and when they do come into force) pushing for a 90-day closure on disciplinary inquir - ies, organisations would need to move away from open-ended investigations. Protocols would need to be streamlined to ensure that evidence gather - ing, hearings, and reporting happen with extreme precision. • Documentation is defence – whether it is a “digital workplace” harassment claim or a Standing Order inquiry, the judiciary’s message in Jet Airways and Ms X is identical: if it is not documented and shared with the accused, it did not happen. The “black box” of HR findings is firmly open to judicial review. As we begin 2026, courts are increasingly scrutinising the procedural integrity of inquiries, often setting aside disciplinary actions if there are any material deviations from applicable principles, highlighting the need for meticulous adherence to established legal norms to withstand judicial review. Therefore, the most resil - ient organisations will be those that treat their internal investigation units not merely as compliance checks, but as sophisticated, internal dispute resolution courts that are impartial, time-bound, and strictly procedural.
218 CHAMBERS.COM
Powered by FlippingBook