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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.
(e) "establishment" means-a. any office or department of the Government or a local authority, or
(ii) any place where any industry, trade, business, manufacture or
occupation is carried on;
(f) "prescribed" means prescribed by rules made under this Act;
(g) "wages" means all remuneration (whether by way of salary, allowances or
otherwise) expressed in terms of money or capable of being so expressed
which would, if the terms of employment, express or implied, were fulfilled, be
payable to a person employed in respect of his employment or of work done
in such employment, and includes:
(a). any remuneration payable under any award or settlement between the
parties or order of a court;
(b). any remuneration to which the person employed is entitled in respect of
overtime work or holidays or any leave period;
(c). any additional remuneration payable under the terms of employment
(whether called a bonus or by any other name);
(d). any sum which by reason of the termination of employment of the person
employed is payable under any law, contract or instrument which provides for
the payment of such sum, whether with or without deductions, but does not
provide for the time within which the payment is to be made;
(e). any sum to which the person employed is entitled under any scheme
framed under any law for the time being in force;
(f). house rent allowance;
but does not include(1). any bonus payable under this Code, 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;
(2). the value of any house-accommodation, or of the supply of light, water,
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;
(3). any contribution paid by the employer to any pension or provident fund,
and the interest which may have accrued thereon;
(4). any travelling allowance or the value of any travelling concession;
(5). any sum paid to the employed person to defray special expenses entailed
J2 the nature of his employment; or
on
(6). any gratuity payable on the termination of employment in cases other than
those specified in sub-clause (d).
CHAPTER II
THE ADVISORY BOARDS
3. Central Advisory Board.- (1) The Central Government shall, as soon as
may be, 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.
(2) The Central Advisory Board shall consist of-a. Union Labour Minister (in charge), Chairman, ex-officio;
b. Secretary(Labour), Vice-Chairman, ex-officio
c. Joint Secretary/DGLW, Member Secretary
d. Chief Labour Commissioner (Central), Member, ex-officio
e. such number of members, not exceeding eleven but not less than three,
as the Central Government may nominate to represent the Government, the
contractors, the workers and any other interests which, the opinion of the
Central Government, ought to be represented on the Central Advisory Board.
(3) The number of persons to be appointed as members from each of the
categories specified in sub-section (2), the term of office and the manner of
filling vacancies of the Central Advisory Board shall be such as may be
prescribed:
CHAPTER III
LICENSING OF CONTRACTORS
6. Appointment of Licensing officers.-- The Appropriate Government
may, by an order notified in the Official Gazette,-- appoint such persons,
being Gazetted officers of Government, as it thinks fit to be licensing officers
for the purposes of this Chapter;
7. Licencing of contractors.- (1) No contractor, shall supply or engage
contract labour in any establishment except under and in accordance with a
licence issued in that behalf.
8. 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.
(3) Applicant must not have been blacklisted by Central, or any State/ UT
Government under any law.
(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.
(5) Applicant must be registered with ESIC Act, 1948, if applicable and each
of his worker is the member of the same.
(6) Applicant must be having registration under Income Tax Act and Income
Tax Payee.
(7) The applicant must be having registration under Service tax Act or other
similar law.
(8) The net worth of the applicant must not be less than 5 crore.
(9) The applicant must be having Labour Identification Number (LIN).
9. Application for Licence.- (1) Every application for the grant of a licence
shall be made in the prescribed form.
(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.
(2) On receipt of an appeal under sub-section (1), the appellate officer shall,
after giving the appellant an opportunity of being heard dispose of the appeal
within 30 days.
14. If the establishment has not taken contract labour from the licensed
contractor, then the contract labour shall deemed to be directly employed
worker of the establishment.
CHAPTER IV
SOCIAL SECURITY OF CONTRACT LABOUR
15. 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;
1. The Employee's Compensation Act, 1923,
2. The Employee's State Insurance Act, 1948,
3. The Employee's Provident Funds and Miscellaneous Provisions Act, 1952,
4. The Maternity Benefit Act, 1961,
5. The Payment of Gratuity Act, 1972
6. The payment of Wages Act, 1936
7. The Equal Remuneration Act, 1976
8. The Minimum Wages Act, 1948
9. The Payment of Bonus Act, 1965
CHAPTER V
OTHER BENEFITS
16. Annual Increment:- Contract Labour shall be entitled for the annual
increment which shall not be less than three per cent of wages.
17. Priority in Regular Employment:- 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.
18. Skill Certification:- 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.
19. Experience Certificate:- 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. Prohibition of employment of contract labour.- (1) Notwithstanding
anything contained in this Act, the appropriate Government may, after
consultation with the Central Board or, as the case may be, a State Board,
prohibit, by notification in the Official Gazette, employment of contract labour
in any process, operation or other work in any establishment.
(2) Before issuing any notification under sub-section (1) in relation to an
establishment, 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, such as(a) whether process, operation or other work is incidental to, or necessary for
the industry, trade, business, manufacture or occupation that is carried on in
the establishment.
(b) whether it is of perennial nature, that is to say, it is of sufficient duration
having regard to the nature of industry, trade, business, manufacture or
occupation carried on in that establishment;
(c) whether it is done ordinarily through regular workmen in that
establishment or an establishment similar thereto;
(d) whether it is sufficient to employ considerable number of whole-time
workmen.
Explanation.-- If a question arises whether any process or operation or other
CHAPTER VIII
PENALTIES AND PROCEDURE
27.Compounding of offences:
(1).
Notwithstanding
anything
contained in the Act of Criminal Procedure, 1973 (2 of 1974), on the
application of the employer concerned, any offence under this Act shall be
compounded, by such officer being a gazetted officer of the appropriate
Government, 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, then, the proceedings shall be
initiated against such employer in accordance with law.
(2). 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, 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, on filing of such report, discharge the accused with whom the
offence has been compounded and such composition shall have the effect of
an acquittal of the accused.
(3). Notwithstanding anything contained in this section, where
(i). 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,
then, only the first such offence may be compounded and such second or
subsequent offence shall not be compounded; and
(ii). the accused has previously been convicted by a Court for committing the
offence of similar nature, no further offence of same nature shall be
compounded, under this section.
(4). No offence under this Act shall be compounded, except as provided under
this section.
CHAPTER-IX
MISCELLANEOUS
32. Effect of laws and agreements inconsistent with this Act.- (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, 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, 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, the contract labour shall
continue to be entitled to the more favourable benefits in respect of that matter,
notwithstanding that they receive benefits in respect of other matters under
this Act.
(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, as the case may be, for granting them rights or privileges in respect
of any matter, which are more favourable to them than those to which they
would be entitled under this Act.
33. Power to make rules.- (1) The appropriate Government may, subject to
the condition of previous publication, make rules for carrying out the purposes
of this Act.
2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters,
namely:-(a) the number of persons to be appointed as members representing various
interests on the Central Board and the State Board, the term of their office, the
procedure to be followed in the discharge of their functions and the manner of
filling vacancies;
(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;
(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;
(e) the form and manner in which appeals may be filed and the procedure to