ISSN No.

 0974‐035X 
An Indexed Refereed Journal of Higher Education 
      Towards Excellence 
UGC‐ACADEMIC STAFF COLLEGE, 
GUJARAT UNIVERSITY, AHMEDABAD, INDIA 

THE CONTRACT LABOURS OF HOSPITAL AND HUMAN RIGHTS

Hitesh Bihola (Author of Paper)

&
Dr. Sujatha Sony Onattu (Co - Author of paper)

Abstract

Contract labours are one of the acute forms of unorganized labours. Now a days there are
large number of contract labours are hiring in health care sector. In hospital contract labours are
hiring for housekeeping service as well as for utility services. But contract labours have to suffer
for their regular pay, leaves and medical benefits. Majorly, labour laws are not following by the
principal employer as well as contractor for the contract labours in hospitals on the other hand
contract labours are not aware about their rights.

Although labour laws of India are the best in the world but the implementation of law is
little bit slow. Government should do towards direction of decreasing exploitation of contract
labours and their unjust condition. The contract labour should know and understand their
individual rights as a contract labours to avoid exploitation.

The objectives of present paper are to understand the condition of contract labours in
hospital and to find out the leaves of understanding and awareness of labour legislations and
their rights. Research area of the paper is contract labours of Civil Hospital, Ahmedabad.
Research Methodology is descriptive as well as exploratory study. Data collection Method is
survey through questionnaire as an instrument.

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Towards Excellence: An Indexed Refereed Journal of Higher Education / Mr. Hitesh Bihola & Dr. Sujatha 
Sony  / Page 54‐62 

Introduction

There are two mainly types of labours. Permanent labours and contract labours. Contract labours
are labours who are not permanent in nature.Contract labour are acute forms of the unorganized
labour. Contract labours are working in different sectors. They are working in factories,
educational institutes, and health care sector. Contracted labour has undergone a significant
corporate shift over the last few years as business move into a new decade of development and
growth, this complex arena of organizational spending remains an evolutionary component in
achieving overall objectives and goals. One of the important and common reason or perception
about employing contract labour instead of regular labour by principal employers is that too
much security of employment breeds inefficiency, lack of commitment to work and also breeds
indiscipline. The Contract Labour (Regulation and Abolition) Act, 1970 is to regulate the
employment of contract labour in certain establishment and to provide for its abolition in certain
circumstances and for matters connected therewith. Contract labour is neither borne on payroll or
muster roll nor is paid wage directly. The establishment, which farm out work to contractor does
not own any direct responsibility in regard to their labour. Generally, the wage rates to be paid
and observance of working condition and stipulate in agreement, but in practice they are not
strictly adhered to. In India, contract labourers are protected by the Contract Labour Regulation and
Abolition Act, 1970. A contract labour is defined in the Act as a worker who are hired in
connection with the work of an establishment by a principal employer or a manage through a
contractor. The act makes a number of provisions for the welfare of the contract workers
including payment of minimum wage, social security benefits and others. At various points of
time Government amended the law with a view to make it more labour friendly.

Human Rights

The Universal Declaration on Human Rights, 1948 haseveryone has the Right to Work, to free
choice of employment, just and favourable conditions, and to protection against unemployment.
Everyone, without any discrimination, has the right to equal pay for equal work.

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Towards Excellence: An Indexed Refereed Journal of Higher Education / Mr. Hitesh Bihola & Dr. Sujatha 
Sony  / Page 54‐62 

The Contract Labour and Human Rights

Equal pay for equal work in the Universal Declaration on Human Rights but the Contract
Labours are not getting these. Their wages are low compare to other permanent labours. The
Contract labours are getting less salaries. Other benefits are getting by the permanent labours but
not by the contract labours. The moment, the contract labour system stands prohibited under the
act, to continue as a contract labour is put to and direct relationship has been provided between
the workman and the principal employer. Thereby, the principal employer directly become
responsible for taking the service of the workman hitherto regulated through the contractor and
such labour have to be absorbed. Therefore the petitioners shall become employees of the
principal employer subject to the condition that they are above minimum and below maximum
age and medically fit. Apart from the regulatory measures provided under the act for the benefit
of the contract labour the government makes prohibition on the employment of the contract
labour in establishment where the work is in seasonal nature not in perennial. The contract
labours are eligible for the provident fund benefit, insurance benefit; medical benefit etc. The
women contract labour are eligible for the equal remuneration as per the Equal Remuneration
Act, 1976. Women worker are also entitle for maternity leave with pay as per the Maternity
Benefits Act. The contract labours are entitled for benefits under the other Labour Legislation.

Contract Labour Wages in Hospitals

As per The payment of wages act, 1936 every employer has to pay the wages within the fix
period and the wage period should not exceed a Month.  The Contract Labour (Regulation and
Abolition) Act, 1970 provides that in case the contractor fails to make the payment of wages
within the prescribed period then the principal employer shall be liable to make payment of
wages. The survey  reveals that wage period was fixed in all cases and in no case it exceeded a
month. The rates of wages payable to contract workers is not less than the rates prescribed under
the Minimum Wages Act, 1948.the labours performed the similar kind of work as the employee
directly employed by the principal employer. But there is a large difference between the wage
rates. While comparing the wage rate of driver, security guard, utility worker technician etc.the

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Towards Excellence: An Indexed Refereed Journal of Higher Education / Mr. Hitesh Bihola & Dr. Sujatha 
Sony  / Page 54‐62 

direct employees are enjoying better pay than the contract workers. Direct workers get facilities
the overtime payment and leave with pay. No advance given to the worker by the contractor.  In 
cases of imposing fines on contract workers was not reported in any of the unit and no contractor
reported of making any deduction from the wages of their workers on account of damage or loss.

Other Cash Allowances for Contract Labour

According to survey data only 22 per cent contractor paying conveyance allowance to the
contract workers.12 per cent of contract worker gets the house rent allowance.10 per cent
contract worker enjoy the Washing allowance. No contractor pays the food allowance, Medical
allowance, hard duty allowance, Night shift allowance etc. loan facility is not provided by the
contractor.

Working hours for Contract Labour

Working hours of contract worker are fixing at the rate of eight hours. The survey data reveals
that the working hours increase as per the work load. And at the night shift the working hours are
twelve and the rate of wage is same and no night off allotted to the contract worker similarly on
the other hand the direct employee who employed by the principal employer enjoy the night off
after the night duty.

Welfare Facilities for Contract Labour

The provisions contained in Contract Labour (Regulation & Abolition) Act, 1970 requires every
contractor / principal employer to provide adequate supply of drinking water, adequate and
proper facilities for washing, latrines and urinals, canteen facilities, properly maintained first aid
boxes etc.

Drinking water

The survey data reveals that 90 per cent drinking water facility provided by the principal
employer there are educate number of water cooler available for the drinking water.

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Sony  / Page 54‐62 

Washing facility

The survey data reveals that only 20 per cent washing facility are available for the contract
worker.

Urinals & latrines

The facilities of urinals and latrines to contract workers in hospital were provided in all the units
surveyed.

Rest shelter

As per the Contract Labour (Regulation and Abolition) Act, 1970 in every place wherein
contract labour is required to halt at night in connection with the work of establishment, the
contractor / principal employer are required to provide and maintain such number of rest rooms
as may be prescribed or such other alternative accommodation for the use of the contract labour
separately for men and women workers. But according to survey there is no rests shelter
provided by the contractor as well as by the principal employer.

Canteen

In every establishment to which Contract Labour (Regulation and Abolition) Act, 1970 applies
and where in work regarding employment of contract labour is likely to continue for six months
and where in contract labour numbering 100 or more is ordinarily employed, an adequate
canteen facility shall be provided and maintained either by contractor or by principal employer.
The survey data reveals that 90 per cent employer provide canteen facility to contract worker.

Social Security for Contract Labour

Employees Provident Fund

During the course of survey it was observed that 100 per cent contract workers were covered
under the Employees Provident Fund scheme. The rate of contribution and eligibility conditions
were as per the Employee Provident Fund and Miscellaneous provisions Act, 1952.

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Sony  / Page 54‐62 

Employees State Insurance Corporation Scheme

During the course of survey it was observed that 100 per cent contract workers were covered
under ESIC scheme. The rate of contribution and eligibility conditions were as per the Employee
State Insurance Act, 1948.

Maternity Benefits

During the survey it was found that maternity benefit is not availed to any of the female workers
engaged as a contract worker in Hospital.

Maintenance of Registers

The Contract Labour (Regulation and Abolition) Act, 1970 and the rules there under provide for
maintenance of register of attendance, wages, fines, deductions, overtime and advance.70 per
cent contractor maintain the register in the Hospital.

Trade Unions

During the survey it was found that there is no trade union for the contract worker in the hospital.

Grievance Redressed Procedure

During the course of survey it was observed that there is no grievance redressed procedure
followed in the Hospital.

Summary of Findings
A survey to study the working conditions of the contract workers under the Contract Labour
(Regulation and Abolition) Act, 1970 in the sector of Health Care (Hospital) The objective of the
survey was to study the working conditions, wages and earnings, welfare facilities, social
security and industrial relations in respect of contract workers. In addition to the contractors, two
workers belonging to contractor were also interviewed to crosscheck the facts about their wages,
working conditions and facilities provided to them by their principal employers / contractors. As
far as possible the information was collected from the records of the principal employer and the
contractors. However, in the event of non-availability of person and the requisites records,
information was collected through discussions with the contractors or their authorized represent.

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Sony  / Page 54‐62 

Suggestions

 There should be strict implementation of the Contract Labour (Regulation and Abolition)
Act, 1970 for the labour rights and avoiding the exploitation.
 There should be strict implementation of the Maternity Benefits Act, 1961 for the women
contract worker to facilitate the maternity leave, leave for illness arising out of
pregnancy, miscarriage, tubectomy operation.
 There should be a formation of trade union for the contract worker to raise their voice for
justice.
 There should be well managed grievance redressed procedure for contract worker in hospital.
 There should be a separate medical board for health checkup of contract worker.
 There should not any type of discrimination and variation in salaries between contract
worker and permanent employee for the similar work.

Conclusion

The study reveals that the labour legislation follows in the correct manner and implementation of
provisions become proper it could be decrease the exploitation of contract labour. Several
provisions of the Acts are not following completely by the contractor or principal employer
which results in the violation of the beneficiary rights of contract labour

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Works Cited

Agarwal, Rashmi (2001): Labour Laws and Contemporary Issues, Manpower Journal,

XXXVII,4,39-47

Contract Labour (Regulation and Abolition) Act, 1970

Employee Provident Fund and Miscellaneous provisions Act, 1952

Employee State Insurance Act, 1948.

Government of India, Annual Report, Ministry of Labour,Different Issues

http://www.legalserviceindia.com/article/perspective-on-contract-labour.html

http://www.ohchr.org/EN/Issues/Pages/WhatareHumanRights.aspx

Kumar, Arun ,2002, Labour Law Reforms in India: Some Issues for Consideration, Manpower

Journal, Vol.

Maternity Benefits Act, 1961

The protection of Human Rights Act, 1993

XXXVII, 4, 39-47

Hitesh Bihola (Author of Paper)

Ph. D. Research Scholar,
Department of Labour Welfare,
School of Social Science,

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Gujarat University
E – mail ID: hiteshbihola@gmail.com

&
Dr. Sujatha Sony Onattu (Co - Author of paper)
Associate Professor (Ph. D. Research Guide),
Department of Labour Welfare,
School of Social Science,
Gujarat University
E- mail: sujathasony@rediffmail.com

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