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DRAFT BILL ON THE CONTRACT LABOUR (REGULATION AND

ABOLITION), 2015
An Act to regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain circumstances and
for matters connected labour therewith.

CHAPTER I
PRELIMINARY
1. Short title, extent, commencement and application. - (1) This Act
may be called the Contract Labour (Regulation and Abolition) Act, 2015
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
(4) It applies-(a)
To every establishment in which ten or more contract labour employed
or was employed on any day of the preceding twelve months through
contractor ;
(b)
To every manpower contractor who supply /provide contract labour to
any establishment.
2. Definitions.- (1) In this Act, unless the context otherwise requires,-(a)"Appropriate Government" means,-- (i) in relation to the manpower supply
contractor having the functioning in more than one State, Central
Government, and
(ii) in relation to any other manpower supply contractor, Government of
State.
(b) Blacklisted Contractor- any contractor who has been blacklisted by
any Government Department.
(c) a workman shall be deemed to be employed as "contract labour" in or in
connection with the work of an establishment when he is hired in or in
connection with such work through a manpower supply contractor.
(d) "Manpower Supply Contractor", means a firm who supplies contract labour
for any work of the establishment.

or on . any travelling allowance or the value of any travelling concession. manufacture or occupation is carried on. any sum paid to the employed person to defray special expenses entailed J2 the nature of his employment. (e). any sum to which the person employed is entitled under any scheme framed under any law for the time being in force. express or implied. (4). allowances or otherwise) expressed in terms of money or capable of being so expressed which would. whether with or without deductions. medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government. but does not provide for the time within which the payment is to be made. water. trade. any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period. which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court. (f) "prescribed" means prescribed by rules made under this Act. were fulfilled. if the terms of employment.(e) "establishment" means-a. contract or instrument which provides for the payment of such sum. and includes: — (a). house rent allowance. but does not include(1). any remuneration payable under any award or settlement between the parties or order of a court. any office or department of the Government or a local authority. any contribution paid by the employer to any pension or provident fund. (3). (2). any sum which by reason of the termination of employment of the person employed is payable under any law. be payable to a person employed in respect of his employment or of work done in such employment. any bonus payable under this Code. the value of any house-accommodation. (b). or (ii) any place where any industry. (c). or of the supply of light. (d). and the interest which may have accrued thereon. business. (f). (g) "wages" means all remuneration (whether by way of salary. any additional remuneration payable under the terms of employment (whether called a bonus or by any other name). (5).

Secretary(Labour). unskilled. skilled. the term of office and the manner of filling vacancies of the Central Advisory Board shall be such as may be prescribed: Provided that the number of members nominated to represent the workers shall not be less than the number of members nominated to represent the contracts. Vice-Chairman. ex-officio c. ex-officio. as soon as may be. technical. b. constitute a board to be called the Central Advisory Contract Labour Board (hereinafter referred to as the Central Board) to advise the Central Government on such matters arising out of the administration of this Act as may be referred to it and to carry out other functions assigned to it under this Act. (h) "worker" means any person (except an apprentice) employed to do any manual. (2) The Central Advisory Board shall consist of-a. the contractors. Member. the workers and any other interests which. Chairman. as the Central Government may nominate to represent the Government. Joint Secretary/DGLW. ought to be represented on the Central Advisory Board. whether the terms of employment be express or implied. Chief Labour Commissioner (Central). but does not include who is employed mainly in a supervisory or managerial or administrative capacity. . (3) The number of persons to be appointed as members from each of the categories specified in sub-section (2). ex-officio e. Union Labour Minister (in charge). operational. Member Secretary d.(1) The Central Government shall. such number of members. not exceeding eleven but not less than three. Central Advisory Board. CHAPTER II THE ADVISORY BOARDS 3.(6). the opinion of the Central Government.. clerical work for hire or reward. any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).

the term of office and the manner of filling vacancies among. Vice-Chairman. The State Advisory Board shall consist of-a. ought to be represented on the State Advisory Board (3) The number of persons to be appointed as members from each of the categories specified in sub-section (2). the Labour Commissioner. the members of the State Advisory Board shall be such as may be prescribed: Provided that the number of members nominated to represent the workers shall not be less than the number of members nominated to represent the contractors. Power to constitute committees. as the case may be. Member Secretary. .. ex-officio d. Labour Minister (in charge). (3) The members of a committee shall be paid such allowances for attending its meetings as may be prescribed: Provided that no allowance shall. ex-otticio b. Department of Labour. ex-officio e. Chairman. Secretary (in charge Labour).(1) The State Government may constitute a board to be called the State Advisory Contract Labour Board (hereinafter referred to as the State Board) to advice the State Government on such matters arising out of the administration of this Act as may_be referred to it and to carry out other functions assigned to it under this Act 2. the opinion of the State Government. may constitute such committees and for such purpose or purposes as it may think fit. . the workers and any other interests which. State Advisory Board. not exceeding eleven but not less than three. the contractors. ex-officio c. as the State Government may nominate to represent the Government. Joint Secretary. 5.(1) The Central Advisory Board or the State Advisory Board. (2) The committee constituted under sub-section (1) shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed. be payable to a member who is an officer of Government or of any corporation established by any law for the time being in force. such number of members.4.

8.appoint such persons. (9) The applicant must be having Labour Identification Number (LIN). shall supply or engage contract labour in any establishment except under and in accordance with a licence issued in that behalf. (6) Applicant must be having registration under Income Tax Act and Income Tax Payee. being Gazetted officers of Government. by an order notified in the Official Gazette. if applicable and each of his worker is the member of the same. or any State/ UT Government under any law. 9.(1) No contractor.. (2) The licensing officer may make such investigation in respect of the application received under sub-section (1) and in making any such investigation the licensing officer shall follow such procedure as may be prescribed. Application for Licence.(1) Every application for the grant of a licence shall be made in the prescribed form. . Appointment of Licensing officers. 1948.. (8) The net worth of the applicant must not be less than 5 crore.-. (7) The applicant must be having registration under Service tax Act or other similar law.The Appropriate Government may.CHAPTER III LICENSING OF CONTRACTORS 6. as it thinks fit to be licensing officers for the purposes of this Chapter. Eligibility for Licence (1) Applicant must be a (Private Limited Company or Public Limited Company/ Limited Liability Partnership) and incorporated or registered in India under the Indian Companies Act 2013 (2) Applicant must have minimum 100 workers on its pay roll. (4) Applicant must be registered under Employee's Provident Fund and Miscellaneous Provisions Act 1952 and each of his worker must be member of the same.-. 7. (5) Applicant must be registered with ESIC Act. (3) Applicant must not have been blacklisted by Central. Licencing of contractors.

(1) If the licensing officer is satisfied. or b) That the contractor has violated the provision of this Act or the rules made there under or any of the conditions of the licence.10. revoke or suspend the license. Appeal.. suspension and amendment of Licence. after giving the contractor an opportunity of showing cause. that-a) a licence issued under section 10 has been obtained by misrepresentation or suppression of any material fact. prefer an appeal to an appellate authority who shall be a person notified in this behalf by the appropriate Government: Provided that the appellate officer may entertain the appeal after the expiry of the said period of thirty days. c) the holder of a licence has. within thirty days from the date on which the order is communicated to him. in whole or in part. . the licensing officer may. then the contract labour shall deemed to be directly employed worker of the establishment. 14. the appellate officer shall. If the establishment has not taken contract labour from the licensed contractor.. 11. 13. the licencing officer shall grant the licence within 30 days of receipt of the application. 12.If the applicant satisfies the requirement of section 8 and section 9. without prejudice to any other penalty to which the contract may be liable under this Act. without reasonable cause. Revocation. the licensing officer may vary or amend a registration granted under section 10.(1) Any person aggrieved by an order made under section 10 or section 12 may. after giving the appellant an opportunity of being heard dispose of the appeal within 30 days. any fees/ commission or costs to the workers. No fees/ Commission or any cost to workers:. either on a reference made to him in this behalf or otherwise. or any other applicable labour law(s) then. (2) Subject to any rules that may be made in this behalf. if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.The contractor shall not charge directly or indirectly. (2) On receipt of an appeal under sub-section (1). failed to comply with the conditions subject to which the registration has been granted or has contravened any of the provisions of this Act or the rules made there under. Grant of Licence:.

The Employee's Provident Funds and Miscellaneous Provisions Act.The contract labour who has worked not less than three years in an establishment shall be given preference by the establishment while recruiting regular workers. Annual Increment:. 1. 1948 9. 4. 17. 1976 8. The Maternity Benefit Act. 1948. Priority in Regular Employment:. The Equal Remuneration Act. 1952. The Payment of Bonus Act.Contract Labour shall be entitled for the annual increment which shall not be less than three per cent of wages. The Employee's State Insurance Act. . 2. The Payment of Gratuity Act. 1923.CHAPTER IV SOCIAL SECURITY OF CONTRACT LABOUR 15. The payment of Wages Act. 1936 7. It shall be the duty of the establishment to pay the dues to the contract labour and deposit the dues towards the contract labour to various statutory bodies on behalf of contractor and to comply with the following legislations wherever applicable. The Employee's Compensation Act. 5. 1972 6. 1961. The Minimum Wages Act. 3. 1965 CHAPTER V OTHER BENEFITS 16.

Contractor shall issue experience certification to the contract labour annually giving details of the work performed by the contract labour in the prescribed tormat CHAPTER VI PROHIBITION 20.-. that is to say.18. manufacture or occupation that is carried on in the establishment. operation or other work is incidental to. trade. or necessary for the industry.If a question arises whether any process or operation or other . after consultation with the Central Board or. employment of contract labour in any process. manufacture or occupation carried on in that establishment.(1) Notwithstanding anything contained in this Act. Skill Certification:. (b) whether it is of perennial nature. Experience Certificate:. 19.. trade. as the case may be. business. the appropriate Government may. it is of sufficient duration having regard to the nature of industry. by notification in the Official Gazette. prohibit. business. the appropriate Government shall have regard to the conditions of work and benefits provided for the contract labour in that establishment and other relevant factors.The establishment shall issue a skill certificate to the contract labour at the time of termination/leaving the employment obtained from the institutions recognised for this purpose. a State Board. operation or other work in any establishment. such as(a) whether process. Explanation. (d) whether it is sufficient to employ considerable number of whole-time workmen. Prohibition of employment of contract labour. (c) whether it is done ordinarily through regular workmen in that establishment or an establishment similar thereto. (2) Before issuing any notification under sub-section (1) in relation to an establishment.

Every employer of an establishment shall send an annual return in the prescribed form and as far as possible electronically to the authority as may be prescribed. wage period. appoint Facilitators who shall exercise the powers conferred on them under sub-section (4) throughout the State or such geographical limits assigned to them. category-wise wage rates of employees. as the case may be. (2) Every employer shall display on the notice board at a prominent place of the establishment containing the abstract of the Act. . 21. Every employer shall issue wage slips to the employees as may be prescribed. Every employer of an establishment to which this Act applies. CHAPTER-VI! FACILITATORS 23. muster roll.work is of perennial nature. by notification. (3). RETURNS AND NOTICES 22. day or date and time of payment of wages. Returns and Notices: (1). and other details as prescribed by the appropriate Government on their website and in case the contractor is not having the website than on the website of establishment is which the contract labour are engaged. The appropriate Government may. CHAPTER-VI RECORDS. the decision of the appropriate Government thereon shall be final. Records. Appointment of Facilitators and their powers: (1). and the name and address of the Facilitator having jurisdiction. If any establishment has engaged contract labour in violation of section 20 of this Act. wages. such contract labour shall be deemed to be directly employed worker of the establishment. (4). shall maintain records containing the details with regard to persons employed. in relation to establishments situated in such State or geographical limits.

(ii). examine any person who is found in any premises of the establishment and whom. (4). Subject to any rules made in this behalf by the appropriate Government. Every Facilitator appointed under sub-section (1) shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code 1860 (45 Of 1860). CHAPTER VIII PENALTIES AND PROCEDURE . lay down an inspection scheme which shall provide for generation of a web-based inspection schedule. exercise such other powers as may be prescribed. search. record of wages or notices or portions thereof as the Facilitator may consider relevant in respect of an offence under this Act and which the Facilitator has reason to believe has been committed by the employer. (5). the Facilitator has reasonable cause to believe. which is in his power to give with respect to the names and addresses of the persons. supply information and advice to employers and workers concerning the most effective means of complying with the provisions of this Act. the Facilitator may — (a). Subject to clause (i). by notification. (a). within the local limits for which he is appointed — (i). The appropriate Government may. require any person to give any information. and (e). a facilitator may. is a worker of the establishment. (b). bring to the notice of the appropriate Government defects or abuses not covered by the law for the time being in force. (d). inspect the establishment based on inspection scheme referred to in subsection (2). seize or take copies of such register. (b). (c).(2). Any person required to produce any document or to give any information required by a Facilitator under sub-section (4) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of 1860). (3).

(3). (2). 1973 (2 of 1974). on the application of the employer concerned. Cognizance of offences.Whoever contravenes any provision of this Act or of any rules made thereunder prohibiting. discharge the accused with whom the offence has been compounded and such composition shall have the effect of an acquittal of the accused. Notwithstanding anything contained in the Act of Criminal Procedure. the proceedings shall be initiated against such employer in accordance with law. or with fine which may extend to fifty thousand rupees.. Limitation of prosecutions.No court shall take cognizance of an offence punishable under this Act unless the complaint thereof is made within one year from the date on which the alleged commission of the offence came to the knowledge of facilitator: 27. or contravenes any condition of a license granted under this Act. Contravention of provisions regarding employment of contract labour. and in the case of a continuing contravention with an additional fine which may extend to one thousand rupees for every day during which such contravention continues after conviction for the first such contravention. the facilitator and no court inferior to that a judicial magistrate of the first class shall try any offence punishable under this Act.. 25. where — (i). . Notwithstanding anything contained in this section. any offence under this Act shall be compounded. on filing of such report. the officer compounding the offence under sub-section (1) shall file a report in the court in which the trial of the offence is pending and the court shall. in such manner and on payment of such amount to such government as may be prescribed and if the employer does not agree to pay such amount for composition of the offence. shall be punishable with imprisonment for a term which may extend to one month.. 26. by such officer being a gazetted officer of the appropriate Government. the second or subsequent offence of similar nature is committed within five years from the date of the commission of the first such nature of offence. restricting or regulating the employment of contract labour. or with both.Compounding of offences: (1). or with the previous sanction in writing of. then. The offence referred to in sub-section (1) may be compounded before or pending the trial of the offence and when the offence is compounded during the trial of the offence.No court shall take cognizance of any offence under this Act except on a complaint made by.24.

-(1) No suit. No offence under this Act shall be compounded. 31. and for such period or periods. as appears to it to be necessary or expedient for removing the difficulty. no further offence of same nature shall be compounded. CHAPTER-IX MISCELLANEOUS 28.then.Power to give directions. by order published in the Official Gazette. all or any of the provisions of this Act or the rules made thereunder shall not apply to any establishment or class of establishments or any class of contractors.. make such provisions not inconsistent with the provisions of this Act. the Central Government may. that subject to such conditions and restrictions. 30. direct. the accused has previously been convicted by a Court for committing the offence of similar nature. by notification in the Official Gazette. under this section. in the case of an emergency. Protection of action taken under this Act. if any.. Power to exempt in special cases. except as provided under this section. only the first such offence may be compounded and such second or subsequent offence shall not be compounded. as may be specified in the notification..Power to remove difficulties.If any difficulty arises in giving effect to the provisions of this Act. 29. licensing officer or any other government servant or against any member of the Central Advisory Board or the State Advisory Board. and (ii). as the case may be. (2) No suit or other legal proceeding shall lie against the Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder. . prosecution or other legal proceedings shall lie against any registering offices.The appropriate Government may.The Central Government may give directions to the Government of any State as to the carrying into execution in the State of the provisions contained in this Act. (4). for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.

(1) The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any agreement or contract of service. (b) the times and places of the meetings of any committee constituted under (c) the form of application for the grant a license and the particulars it may contain. (2) Nothing contained in this Act shall be construed as precluding any such contract labour from entering into an agreement with the establishment or the contractor.. for granting them rights or privileges in respect of any matter. or in any standing orders applicable to the establishment whether made before or after the commencement of this Act: Provided that where under any such agreement. namely:-(a) the number of persons to be appointed as members representing various interests on the Central Board and the State Board.(1) The appropriate Government may. the procedure to be followed in the discharge of their functions and the manner of filling vacancies. make rules for carrying out the purposes of this Act. notwithstanding that they receive benefits in respect of other matters under this Act. the term of their office. 33. which are more favourable to them than those to which they would be entitled under this Act. Effect of laws and agreements inconsistent with this Act. and without prejudice to the generality of the foregoing power. as the case may be. (d) the manner in which an investigation is to be made in respect of an application for the grant of a license and the matters to be taken into account in granting or refusing a registration. subject to the condition of previous publication.32. contract of service or standing orders the contract labour employed in the establishment are entitled to benefits in respect of any matter which are more favourable to them than those to which they would be entitled under this Act. such rules may provide for all or any of the following matters. the contract labour shall continue to be entitled to the more favourable benefits in respect of that matter. (e) the form and manner in which appeals may be filed and the procedure to .. 2) In particular. Power to make rules.

(2). (3) Every rule made by the Central Government under this Act shall be laid as soon as may be after it is made. both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made. Notwithstanding such repeal. nomination. 1970 is hereby repealed. appointment. so. (3). . Without prejudice to the provisions of sub-section (2). (1). and if before the expiry of the session in which it is so laid or the session immediately following.4 be followed by appellate officers in disposing of the appeals. before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions. however. Contract Labour (Regulation & 34. that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. the provisions of section 6 of the General Clause Act. anything done or any action taken under the enactment so repealed (including any notification. as the case may be. the rule shall thereafter have effect only in such modified form or be of no effect. 1897 (10 of 1897) shall apply to the repeal of such enactments. order or direction made thereunder) shall be deemed to have been done or taken under the corresponding provisions of this Act and shall be in force to the extent they are not contrary to the provisions of this Act till they are repealed under the corresponding provisions of this Act. Repeal and savings Abolition) Act.