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Contract Labour Act 1970 Overview

The Contract Labour Act regulates the employment of contract labour in certain establishments to provide them protection with regards to their working conditions. It requires the principal employer of establishments with 20 or more workers to register themselves and obtain a certificate. Contractors employing 20 or more contract labour also require a license. The Act prohibits contract labour for certain types of work and obligates employers and contractors to provide welfare amenities and ensure timely payment of wages to contract workers. Non-compliance can attract penalties like fines or imprisonment.

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Raj Nagar
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148 views12 pages

Contract Labour Act 1970 Overview

The Contract Labour Act regulates the employment of contract labour in certain establishments to provide them protection with regards to their working conditions. It requires the principal employer of establishments with 20 or more workers to register themselves and obtain a certificate. Contractors employing 20 or more contract labour also require a license. The Act prohibits contract labour for certain types of work and obligates employers and contractors to provide welfare amenities and ensure timely payment of wages to contract workers. Non-compliance can attract penalties like fines or imprisonment.

Uploaded by

Raj Nagar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

CONTRACT LABOUR ACT

1970
SUBMITTED BY: SUNIL

SHEKHAR
CONTENT
INTRODUCTION
DEFINITION
OBJECTIVE
SCOPE AND COVERAGE
PROHIBITION OF CONTRACT LABOUR
OBLIGATIONS OF EMPLOYERS
OFFENCES AND PENALTIES
INTRODUCTION
A workman is deemed to be employed as Contract
Labour when he is hired in connection with the work
of an establishment by or through a contractor.
 Contract labour has to be employed for work which is
specific and for definite duration.
DEFINITION
 contractor means a person who
undertakes to produce a given result for
an establishment through contract
labour or who supplies contract labour
for any work in an establishment.
OBJECTIVE
One objective of act was to regulate employment of
contract labour so as to place it at par with labour
employed directly, with regard to working conditions
and certain other benefits available under labour laws.
The act also empowers the appropriate government to
prohibit employment of contract labour in any process,
operation or other work in any establishment.
PROHIBITION OF CONTRACT LABOUR

Central and state govt. can prohibit employment of


contract labour in any process operation or other work
after consulting their advisory board.
Prohibition can be in the following circumstances:
a) The work is of perineal nature
b) It is incidental to and necessary for the industry,
trade, business in the establishment and
c) It is ordinarily done through regular workmen.
SCOPE AND COVERAGE
Every establishment where 20 or more workmen are or
were employed on any of preceding 12 months.
Every contractor who employs 20 or more workman.
Work performed in an establishment shall not be
intermittent nature if :
It was performed for more than 120 days in 12 months.
It is seasonal character and is performed for more than
60 days in a year.
CONT…..
Some of the processes where contract labour may be
permitted to be employed:
I. Loading and unloading
II. Stacking and unstacking, and
III. Construction works, renovation of machinery, etc.
OBLIGATION OF EMPLOYERS
Registration of establishment by the principal
employee and obtain registration certificate from
registration officer.
The contractor to obtain licence from licensing officer
failure to do so entails penal provisions.
Contractor to provide welfare and health amenities for
contract labour .
Contractor to pay wages to contract labour regularly
and timely, in presence of representative of the
principal employer.
CONT…..
Principle employer and contractor should maintain
such registers, records, send prescribed returns and
exhibit notices containing hours of work, etc.
Applicability of other labour laws to contract labour:
factories act, payment of wages act, id act, workmen’s
compensation act as applicable to regular workers.
Persons who get displaced, on expiry of contract, do
not get statutory right for absorption in regular service
of the employer.
OFFENCES AND PENALTIES
Fine upto Rs. 500/ Rs. 1000 or/ and imprisonment upto
3 months.
Director, partner or principal officer is responsible for
the conduct of affairs and liable to be punished.

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