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S.O. 2312(E) · sector concordance

Termination of employment under the Model Standing Orders, 2026

The three Model Standing Orders use materially similar termination rules, but their paragraph numbers differ. Mining uses paragraph 23, Manufacturing paragraph 22, and Service paragraph 23.

Reviewed by Finin2min legal research team · Source review 2 October 2026

Verified sector concordance

ScheduleSectorTermination paragraphCore permanent-worker rule
Schedule AMining sectorParagraph 23One month's prior notice in writing, with reasons, or pay in lieu for termination of a permanent worker.
Schedule BManufacturing sectorParagraph 22The same one-month written notice or pay-in-lieu structure for a permanent worker, subject to the paragraph and applicable law.
Schedule CService sectorParagraph 23The same permanent-worker notice structure, read with the sector schedule and certified standing orders.
Mapping correction built into this guide: Manufacturing is paragraph 22 and Service is paragraph 23. Always open the applicable schedule or certified standing orders before issuing a letter.

Paragraph-wise decode

Permanent worker

The employer must ordinarily provide one month's prior written notice stating the reasons or wages in lieu of notice. The notice requirement is separate from the need for a lawful substantive reason and any retrenchment, closure, transfer, misconduct or other statutory process.

Other listed categories

The Model Standing Orders state that no notice or pay in lieu is required for temporary, probationer, substitute, fixed-term or casual workers on non-renewal or expiry in the circumstances stated. Classification must match the actual engagement and records; a label cannot defeat the real relationship or another applicable provision.

Misconduct safeguard

A temporary worker cannot be terminated as punishment for misconduct without an opportunity to explain the alleged misconduct. If the decision is punitive in substance, the employer should not disguise it as a simple non-renewal.

Final dues

Wages earned and other dues should be paid before expiry of the second working day from termination as stated in the Model Standing Orders. Coordinate this with wage, gratuity, leave, bonus, social-security and separation-record obligations.

Controlling legal stack

The Industrial Relations Code, 2020, the Industrial Relations (Central) Rules, 2026 and S.O. 2312(E) form the central framework. The employer must first decide whether the Model Standing Orders apply directly, operate until certified standing orders take effect, or have been displaced or modified by certified standing orders. The appropriate Government, establishment classification and sector schedule are threshold questions. Retrenchment under the Code, disciplinary action, fixed-term expiry and abandonment are legally different routes and should not be merged into one template.

Termination workflow

  1. Identify the establishment and schedule. Record the appropriate Government, sector and applicable Model or certified standing orders.
  2. Verify worker status. Check appointment letter, duties, service record, probation confirmation, fixed-term dates, attendance and actual work. Do not rely on the payroll label alone.
  3. Classify the proposed action. Separate ordinary termination, expiry/non-renewal, retrenchment, discharge for medical or performance reasons, and punishment for misconduct.
  4. Map every legal condition. Add the Industrial Relations Code, wage and social-security rules, contractual terms, protected-status issues, pending disputes and any prior approval or notice requirement.
  5. Apply natural justice where required. Frame allegations, disclose relied material, allow a real response and use an impartial process before punitive action.
  6. Prepare the written instrument. State the effective date, defensible reason, notice/pay treatment, handover, property return and payment schedule without prejudicial or unnecessary language.
  7. Settle and record. Pay earned wages and other due amounts within the applicable timeline; issue service and statutory records and preserve proof of payment and delivery.
  8. Close access and evidence. Coordinate IT, confidentiality, benefits and records while avoiding retaliation, data destruction or obstruction of legal rights.

Practical examples

Permanent worker role eliminated

A manufacturing unit abolishes a permanent role. Paragraph 22 supplies the one-month notice baseline, but the team must separately test whether the action is retrenchment under the Code and satisfy notice, compensation and authority requirements that apply. Pay in lieu of standing-order notice does not automatically complete retrenchment compliance.

Fixed-term contract expires

A documented fixed-term contract reaches its stated end date. The employer should verify that the term was genuine, no renewal or contrary promise exists, the worker's status was consistently recorded, statutory fixed-term parity was observed and final dues are paid. Repeated artificial renewals or a punitive motive can change the risk analysis.

Temporary worker accused of misconduct

The supervisor wants immediate separation for alleged theft. Because the proposed action is punitive, the paragraph's opportunity-to-explain safeguard is engaged. Evidence, response and the applicable disciplinary route must be addressed before the employer characterises the exit.

Highlighted controls

Exam and advisory case study

Case: A service-sector employer ends a two-year engagement described as temporary after the worker reports a safety issue. HR relies on “no notice for temporary workers” in paragraph 23. Analysis: the label does not settle status, and the timing may indicate retaliation. The employer must examine actual duties, continuity, appointment records, certified standing orders, the reason for exit, any protected complaint and the applicable Code provisions. If the decision is punitive, an opportunity to respond is also relevant. Conclusion: the standing-order notice clause is only one layer; the lawful ground, status evidence and statutory process remain decisive.

Questions and answers

Does one month apply to every exit?

No. It is the stated permanent-worker notice baseline in these paragraphs. Other categories and legal routes have different conditions.

Can a reason be omitted if pay is given?

The Model Standing Orders refer to written notice with reasons for termination of a permanent worker. Pay in lieu does not make the legal basis irrelevant.

When are final dues payable?

The paragraph states before expiry of the second working day. Also apply any more specific wage, gratuity, leave and social-security rule.

What if certified standing orders differ?

Use the operative certified text and applicable law. Record why that instrument, rather than the Model text, controls the establishment.

Primary official source and related links

Disclaimer: This page is an educational and implementation aid. The applicable Code, Rules, Model or certified standing orders, contract, State instruments, judicial decisions and facts control. Obtain case-specific employment-law advice before termination or disciplinary action.
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Author: CA Nikhil Gupta · Reviewed by CA Nikhil Gupta · Last reviewed 16 July 2026.
Educational purposes only. Exact notified law, rules, schemes, regulator instruments, judicial decisions, state overlays, portal behaviour and facts must be checked before reliance. Verify with a qualified professional.