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By: Gaurav Kanabar
Gunjan Bavsar
Gurprieet Singh Aulakh
Hardik Thakker
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The concern for providing legislative protection to this
category of workers, whose conditions have been
found to be abysmal, resulted in the enactment of the
Contract Labour (Regulation and Abolition) Act, 1970.
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The Contract Labour (Regulation and Abolition) Act,
1970 was brought on the Statute Book to regulate the
employment of Contract Labour in certain
establishments and to provide for its abolition in
certain circumstances and for matters connected
therewith.
    
The employment of Contract Labor is prohibited
under the Law where the work is of =  nature.
But where the work is of    nature the State
Government by its notification may allow to employ
the Contract Labor.
 'very establishment employing 20 or more workers
as contract labor.
 'very contractor employing 20 or more workers.
Dh     
Dh    
 
 hf the work is performed for more than 220 days in
the last 12 months or
 hf the work is of seasonal nature & it is performed
more than 60 days in a year then it shall not be
deemed to be intermittent nature.
‰   
 The work is perennial and must go on from day to
day;
 The work is incidental to and necessary for the work
of the factory;
 The work is sufficient to employ considerable
number of whole time workmen; and
 The work is being done in most concerns through
regular workmen.
D  
=  =  

 hn a factory, the owner or the occupier of the factory & where a


person has been named as Manager under the Factories Act,
1948

D  

 A person who undertakes to produce a given result for the
establishment through contract labour or who supplies contract
labour for any work of establishment & includes a sub contractor.

D  
 

 Any worker will be a contract labor when he is hired for work of


establishment through a contractor, with or without the
knowledge of the principal employer
(      
   
The State govt. can prohibit the employment of
Contract Labor by a notification in the following
areas:
 The process, operation is the main business of the
establishment
 Continuous Manufacturing
 Perennial nature of work
 Where the work should be done by whole ² time
workmen.
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 Housekeeping
 Horticulture
 Loading & Unloading
 Material Movements
 Canteen 'mployment
 Security & Vigilance
   
    
The Principal employer if employing 20 or more workers through the contractor,
he is obliged to get himself registered through FORM No. 1.

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The Contractor has to obtain License if employing more than 20 workers & deposit
the required fees on FORM No. 4 along with the Principal 'mployer Certificate on
FORM No. 5.

   
The License will be valid for one year and can be renewed thereafter before 30
days of its expiry

 
=    

hf the license is obtained by misrepresentation or suppression of material facts.


 =
The Contractor has to deposit the Security amount as prescribed by the State
Govt.
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 Wages shall be paid in the presence of authorized person
nominated by the Principal employer.

 No wage period shall exceed one month.

 Wages of terminated worker shall be paid before the expiry of


second working day from the day on which his services were
terminated.

 Wages to every worker shall be paid directly or to any person


authorized by him.

 The wages paid to the contract workers shall be


authenticated by the representative of the Principal employer
at the end of the wage sheet.
        

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hn Gujarat State 'lectricity Board case, inter-alia, the
Supreme Court recommended that the Central
Government should amend the Act by incorporating
a suitable provision to refer to industrial adjudicator
the question of the direct employment of the workers
of the ex-contractor in the principal establishments,
when the appropriate Government abolishes the
contract labor.
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