The object of the Act is to lay down with sufficient precision uniform conditions of service in industrial establishments so that the employees and the employers know in a clear and unambiguous language their respective rights and obligations.

This Act governs the conditions of employment i.e. rights and obligations of the employee of the establishments to which this Act applies.

The Act is applicable to every industrial establishment employing 50 or more workmen in Maharashtra and Gujarat State.

The employer has to frame draft standing orders & submit them to certifying officer for certification within six months from the date of the applicability of the Act.

To workmen doing manual or technical work, clerical or supervisory work and journalist in case of newspaper establishment.

Under section 5 of the Act the Certifying Officer has jurisdiction to adjudicate upon and decide the question relating to fairness and reasonableness of any provision of the draft standing orders.

If any workman or trade union is aggrieved by the order of the Certifying Officer, he or it also can file an appeal to the appellate authority.

Standing orders come into operation on the expiry of thirty days from the date on which authenticated copies thereof are sent by the Certifying Officer to the employer.

An application for modification of the standing orders can be made after a period of six months from the date on which the standing orders or the last modification thereof came into operation by an employer or workmen to the Certifying Officer.

(a)   If any employer does not submit draft Standing Orders as required or makes any change in the Standing Orders without following the proper procedure, he would be punished with fine upto Rs. 5,000/- If he continues the offence the fine would be Rs. 200/- per day.

(b)   If any employer does any act in contravention of the certified Standing Orders, he would be punished with fine upto Rs. 100. If he continues the offence the fine would be Rs. 25 per day.                         

In the State of Maharashtra the following additional provisions are there. (1) If any employer contravenes the provision of the Act or of the rules made thereunder, he would be punished with fine upto Rs. 100. If he continues the offence, the fine would be Rs. 25 per day. If he is already punished for any offence under the Act and if he again contravenes the provision of the Act or of the rules made thereunder, he would be punished with fine upto Rs. 200.