CONTRACT LABOUR
(REGULATIONS AND ABOLISHION) ACT,1970
The Contract Labour (Regulation & Abolition) Act, 1970 aims to regulate the employment
of contract labor in certain establishments and provide for its abolition in specific
circumstances. It covers establishments with 20 or more contract workers, ensuring welfare
facilities, licensing of contractors, penalties for violations, and compliance requirements.
Recent amendments have increased the threshold for applicability in Maharashtra to 50
workers.
[Link] IMPORATNT SUMMARY
PROVISIONS
1. PURPOSE Act to regulate employment of contract labor in
certain establishment and to abolish it in certain
circumstances
2. EXTENT Whole of India
It applies to establishment of 21 or more workmen
employed for 12 months presiding to apply
provisions given notification 2 months before the
official government apply the provisions to contract
on any establishment. Not applicable if work
intermittent or casual.
CHAPTER I
3. SECTION 3-ADVISORY Central Government appoints Chairman, Chief
BOARD Labor commissioner such number of members not
exceeding 17 and less than 11. Members belong to
railway, coal industry, mining industry etc. Number
of worker representative is same as number of
principal employer or contractor.
State government appoints chairman, chief labor
commissioner and such number of members not
exceeding 17 and less than 11. Belonging to railway,
coal industry, mining industry etc.
4. SECTION 5 Central board can make committee to do such things
it seems fit
CHAPTER III-REGISTRATION
5. SECTION 6 Government to appoint registration officer to
register establishment
6. SECTION 7 Principle employer of establishment makes
application for registration period mentioned by
Government registration done if application is
complete.
7. SECTION 9 Nonregistered employer cannot employ, employee
effect of non-registration on contract labor in any process operation aur any
other work in an establishment nor can take
consultation from Central advisory board and state
advisory board
Chapter IV
8. SECTION 11 Upon licensing officer define the limits of license
APPROPRIATE
GOVERNMENT
9. SECTION 12 Contractors cannot take labor without a license; they
LICENSE OF need to follow the terms of the license.
CONTRACTOR-
10. SECTION 13 Grant of license defines area location nature of
GRANT OF LICENSE- process.
CHAPTER V WELFARE AND HEALTH OF CONTRACTOR OR LABOUR
11. SECTION 19 Provides canteen, rest and first aid other facilities
like drinking water etc. 21 employees responsible to
pay wages on
1) before expiry of contract period to
2) of employer pays money to contractor for
wages due to certify amount was paid
3) contractor to give wages of employer for
4) contractor to pay partial wages it cannot pay
full wages.
CHAPTER VI PENALTY
12. SECTION 22 Obstruction of inspector and 3 months
imprisonment up to find of rupees 500 or both
section 23 provisions regarding violation of work
contract imprisonment up to 3 months find up to
rupees 1000 and if violation continues fine of rupees
100 per day.
CHAPTER VII EXEMPTION
13. SECTION 31 Government can make exceptions during
emergencies from following terms of contract.
