The Act makes it obligatory for employers of an industrial establishment where 100 or more workers are employed to clearly define the conditions of employment, by way of standing orders / services rules and to make them known to the workmen employed. However in the State of Haryana, the Act applies to an industrial establishment where 50 or more workmen are employed or were employed in the preceding 12 months.
The employer is required to prepare draft standing order, which he proposes to adopt and submit the same to the Certifying Officers for certification in accordance with the provisions of Section 3 of the Act. The employer is required to act in conformity with the certified standing orders in dealing with the day today affairs of the workmen. Certified standing orders have the force of the law like any other enactment. Where the number of workmen is less than 50 the Model Standing Orders provided in Schedule I of the Rules will be applicable.
The Joint Labour Commissioner has been appointed Certifying Officer for the purpose of certification of the proposed standing orders of the respective areas under their control. Industrial Tribunal-I is the Appellate authority under the Act.
On receipt of five copies of the draft under Section 3 and the statement of description of workmen employed in the establishment under Rule 5 the Certifying Officer shall forward a copy there of to the trade union, if any or the workmen, or where there is no such trade union, then to the representatives of the workmen duly elected by the workmen in accordance with the provisions of Rule 6 of the Rules. After giving both the parties a notice of fifteen days will afford an opportunity of being heard and explain the implications of the provisions. After due consideration and rectification if necessary the Certifying Officer shall certify the draft and provide the parties with a copy each of the certified draft.
The Act provides that in case the employer fails to submit the draft standing orders, a fine up to Rs. 5,000/- can be imposed and in case of contravention of the standing orders, a fine up to Rs. 100/- and in case of continuance of the offence, further fine up to Rs. 25/- for each such day can be imposed.