THE CONTRACT LABOUR ( REGULATION & ABOLITION ) ACT, 1970

[Act 37 of 1970 as amended by Act of 19862]

CHAPTER I

PREAMBLE/OBJECTIVE

AN ACT TO REGULATE THE EMPLOYMENT OF CONTRACT LABOUR IN CERTAIN ESTABLISHMENTS PROVIDE FOR ITS ABOLITION IN CERTAIN CIRCUMSTANCES & FOR MATTERS CONNECTED THEREWITH.

APPLICABLITY
APPLICABLE EVERY ESTT. WHERE 20 OR MORE WORKMEN ARE OR WERE EMPLOYED AS CONTRACT LABOUR ON ANY DAY IN LAST 12 MONTHS EVERY CONTRACTOR WHO EMPLOYS OR WHO EMPLOYED 20 OR MORE WORKMEN ON ANY DAY IN LAST 12 MONTHS

NOT APPLICABLE IF THE WORK IS OF INTERMITTENT OR CASUAL NATURE

SOME IMP. DEFINITIONS

Contract Labour - A workman hired in or

in connection with work of an estt., by or thro a contractor, with or without knowledge of principal employer.(Sec.2b) Contractor - A person who undertakes to produce a given result for the estt., other than mere supply of goods or articles of manufacture to such estt., thro contract labour, or who merely supplies contract labour for any work of the estt., & includes a sub-contractor.(Sec.2c)

Principal Employer In relation to any Govt. Office or Dept. or a Local Authority, head of that Office/Dept. or such other Officer as the Govt. or the Local Authority may specify in this behalf. In case of factory, the owner or occupier of the factory, & manager of the factory, if any so named under the Factories Act, 1948. In case of mine, owner or agent of mine & the manager of the mine, if any so named.

In any other estt., any person responsible for the supervision & control of the estt.
(Sec.2g)

CHAPTER III REGISTRATION OF ESTABLISHMENT

Principal Employer of an estt. to make an application within stipulated time frame, to the Registering Officer (Asst. Comm. of Labour)

Revocation of RC in certain cases Misrepresentation or suppression of any material fact If the RC becomes useless or ineffective & therefore, requires to be revoked

Effect of Non-Registration If the estt. has not been registered under the Act within the stipulated time ; or the RC has been revoked,

the principal employer of the estt. to which this Act applies, shall not employ contract labour after expiry of period or after the revocation of RC.

PROHIBITION OF EMPLOYMENT OF CONTRACT LABOUR

Appropriate Govt. may, after consultation with the Central or State Advisory Board, prohibit by notification, employment of contract labour in any process, operation or other work in any estt. Before issuing any notification as aforesaid, the appropriate Govt. shall have regard to the conditions of work and other benefits provided for the contract labour in that estt. and other relevant factors, such as -

Whether the process, operation or other work is incidental to or necessary for the industry, trade, business, manufacture or occupation carried on that estt.;
Whether it is of perennial nature i.e. of sufficient duration ;

Whether it is done ordinarily thro regular workmen in that estt. or estt. similar thereto ; Whether it is sufficient to employ considerable number of whole-time workmen.

CHAPTER IV LICENSING OF CONTRACTORS No Contractor shall undertake or execute any work thro contract labour except under and in accordance with a licence issued by the Licensiing Officer. Contractor to make an application within stipulated time frame,to the Licensing Officer.

A Licence shall contain Such conditions including, in particular, hours of work, fixation of wages and other essential amenities in respect of contract labour.

CHAPTER V
WELFARE & HEALTH OF CONTRACT LABOUR

Canteens Rest Rooms Other facilities - Drinking Water, Latrines & Urinals, Washing facilities First Aid facilities Liability of Principal Employer in certain cases Responsibility for payment of wages

CHAPTER VI

WAGES
Contractor

shall fix wage period and no period shall exceed one month Payment of wages
Payment of wages, how made ? Payment of wages on termination Payment to be made on working day Wages to be paid without deduction (except those permissible under Payment of Wages Act) Display of notice showing wage period Entries regarding payment of wages, etc. to be made in Register

CHAPTER VII

REGISTERS & RECORDS

Register of Contractors by Principal Employer Register of persons employed Employment Card Service Certificate Muster Roll, Wage Register Register of
Deductions Overtime Fines Advances

Display of Act and Rules Notice showing rates of wages to be displayed Submission of Returns

MANAGING CONTRACT LABOUR

Why there is need of engaging Contract Labour? What are the pros and cons of Contract Labour? What precautions should be taken while engaging Contract Labour?
Registration Certificate of Principal Employer Licence of the Contractor Selection of the Contractor Terms and conditions of the Agreement Appointment of Contract Labour & terms and conditions of their employment Supervision & Control Disciplinary Matters Payment Statutory Compliance