THE CONTRACT LABOUR (REGULATION
AND ABOLITION) ACT, 1970
OBJECT & COVERAGE OF THE ACT
• The main objective of this act is to regulate
the contract labour and abolish it in certain
cases.
• To prevent exploitation of contract labour and
also to introduce better conditions of work.
• To do away wit the abuses of the system of
employment of contract labour
• It extends to the whole of India.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Applicability (Sec. 1(4))
a) To every establishment in which twenty or
more workmen are employed or were
employed on any day of the preceding twelve
months as contract labour.
b) To every contractor who employs or who
employed on any day of the preceding twelve
months twenty or more workmen
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Not Applicable to (Sec. 1(5))
a)Intermittent nature
b)Work not perform for more than 120 days
c)Seasonal nature
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Definition
Sec 2 (e) establishment" means--
• any office or department of the Government
or a local authority, or
• any place where any industry, trade, business,
manufacture or occupation is carried on
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Definition
Sec 2 (c) CONTRACTOR
"contractor", in relation to an establishment,
means a person who undertakes to produce a
given result for the establishment, other than a
mere supply of goods or articles of
manufacture to such establishment, through
contract labour or who supplies contract
labour for any work of the establishment and
includes a sub-contractor.
Definition
Sec 2 (i) WORKMEN
"workman" means any person employed in or in connection with the work of any
establishment to do any skilled, semi-skilled or un-skilled manual, supervisory,
technical or clerical work for hire or reward, whether the terms of employment be
express or implied, but does not include any such person:
(A) Who is employed mainly in a managerial or administrative capacity; or
(B) Who, being employed in a supervisory capacity draws wages exceeding five
hundred rupees per mensem or exercises, either by the nature of the duties
attached to the office or by reason of the powers vested in him, functions mainly
of a managerial nature; or
(C) Who is an out-worker, that is to say, a person to whom any articles or materials
are given out for certain process to return them back.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Principal Employer
• Head of Department or office
• Occupier/Owner
• Owner or agent of Owner
• Any person responsible for the affairs of the
entire Establishment
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
ADVISORY BOARDS
• Central Advisory Contract Labor Board (sec. 3)
– Chairman (appointed by the Central govt.)
– Chief Labor commissioner
– Members > 18 not <11
• State Advisory Contract Labor Board (sec. 4)
– Chairman
– Labor commissioner (or any other person by Govt.)
– Members>11 not <9
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Registration Of Establishments Employing
Contract Labour (Sec. 6-10)
• Appointment of registering officers (Sec. 6)
• Registration of certain establishments (Sec. 7)
• Revocation of registration (Sec. 8)
• Effect of non-registration (Sec. 9)
• Prohibition of employment of contract labour
(Sec. 10)
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Appointment of registering officers (Sec. 6)
• Appointed by the Appropriate Govt. By
notification in the official gazette
• Appoint such persons and define the limits,
within which a registering officer shall exercise
the powers conferred on him by or under this
Act.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Registration of certain establishments (Sec. 7)
1. Every principal employer of an establishment to which this
Act applies shall, make an application to the registering
officer in the prescribed manner for registration of the
establishment (fee Rs. 20 to 500 relating to no. of workmen
employed)
2. If the application for registration is complete in all respects,
the registering officer shall register the establishment and
issue to the principal employer of the establishment a
certificate of registration containing such particulars as may
be prescribed.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Revocation of registration (Sec. 8)
• If the registering officer is satisfied that, the
registration of any establishment has been
obtained by misrepresentation or suppression
of any material fact, or that for any other
reason the registration has become useless or
ineffective.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Effect of non-registration (Sec. 9)
• In case an establishment required to be
registered under Section 7 is not been
registered within the time fixed for the purpose
under that section
• In the case of an establishment the registration
in respect of which has been revoked under
section 8
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Prohibition of employment of contract labour
(Sec. 10)
• The appropriate Government may, after consultation with the Central
Board or, as the case may be, a State Board, prohibit, by notification in the
Official Gazette, employment of contract labour in any process, operation or
other work in any establishment.
• The appropriate Government shall have regard to the conditions of work
and benefits provided for the contract labour in that establishment and
other relevant factors, such as –
a) Whether the process, operation or other work is incidental to, or necessary
for the industry, trade, business, manufacture or occupation that is carried
on in the establishment
b) Whether it is of perennial nature, that is to say, it is of sufficient duration
having regard to the nature of industry, trade, business, manufacture or
occupation that is carried
THE on in that
CONTRACT establishment
LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Conti…..
c) Whether it is done ordinarily through
regular workmen in that establishment or
an establishment similar there off
d) Whether it is sufficient to employ
considerable number of whole-time
workmen.
LICENSING OF CONTRACTORS (Section 11- 15)
• Section 11: Appointment of licensing officers
• Section 12: Licensing of contractors
• Section 13: Grant of licences
• Section 14: Revocation, suspension and
amendment of licences
• Section 15: Appeals
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Sec. 11: Appointment of licensing officers
• Appoint such persons and define the limits,
within which a licensing officer shall exercise
the powers conferred on him by or under this
Act.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Sec.12: Licensing of contractors
No Contractor to whom the act applies can undertake or
execute any work through contract labour except under
and in accordance with a licence issued in that behalf by
the licensing officer.
Provisions of this act may contain such conditions
including,
• Hours of work
• Fixation of wages
• Other essential amenities
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Section 13: Grant of licences
1. Every application for the grant of a licence under sub-section
(1) of section 12 shall be made in the prescribed form and shall
contain the particulars;
2. The licensing officer may make investigation;
3. A licence granted shall be valid for the period specified therein
(generally 12 months) and may be renewed from time to time.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Sec. 14: Revocation, Suspension and Amendment of Licences
1. If the licensing officer is satisfied, either on a reference made
to him in this behalf or otherwise, that-
a) Obtained by misrepresentation or suppression of any material
fact
b) Failed to comply with the conditions subject to which the
licence has been granted
The licensing officer may vary or amend a
licence granted under Section 12.
2. He has also the power to forfeit the sum, if any, or any
portion thereof deposited as security for the due
performance of the conditions subject to which the licence
was granted.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Section 15: Appeals
• The aggrieved person may within 30 days from the
days on which the order is communicated to him
prefer appeal to appellate officer who shall be a
person nominated by the appropriate govt. for this
purpose.
• Period of 30 days can be extended if there is any
sufficient cause.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Welfare And Health (Sections 16-21)
• Section 16: Canteen
• Section 17: Rest-rooms
• Section 18: Other facilities
• Section 19: First-aid facilities
• Section 20: Liability Of Principal Employer In Certain
Cases
• Section 21: Responsibility For Payment Of Wages
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Section 16: Canteen
1. Appropriate Government may make rules:-
(a) to which this Act applies,
(b) Wherein work requiring employment of contract
labour is likely to continue for such period as
may be prescribed, and
(c) wherein contract labour numbering one
hundred or more is ordinarily employed by a
contractor, one or more canteens shall be
provided and maintained by the contractor for
the use of such contract labour.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Cont…..
2. Without prejudice to the generality of the foregoing
power, such rules may provide for:-
(a) The date by which the canteens shall be provided;
(b) The number of canteens that shall be provided, and
the standards in respect of construction,
accommodation, furniture and other equipment of
the canteens;
(c) The foodstuffs which may be served therein and
the charges which may be made thereof.
Section 17: Rest-rooms
1. In every place wherein contract labour is required to
halt at night in connection with the work of an
establishment:-
(a) To which this Act applies, and
(b) In which work requiring employment of contract
labour is likely to continue for such period as may be
prescribed,
2. The rest rooms or the alternative accommodation to be
provided under sub-section (1) shall be sufficiently
lighted and ventilated and shall be maintained in a
clean and comfortable condition.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Section 18: Other facilities
It shall be the duty of every contractor employing
contract labour to provide and maintain:
a) A sufficient supply of wholesome drinking
water
b) A sufficient number of latrines and urinals
situated as to be convenient and accessible to the
contract labour and
c) Washing facilities
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Section 19: First-aid facilities
• There shall be provided and maintained by the
contractor so as to be readily accessible during
all working hours a first-aid box equipped with
the prescribed contents at every place where
contract labour is employed by him.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Section 20: Liability Of Principal Employer In
Certain Cases
1. If any amenity required to be provided for the benefit of the contract
labour employed in an establishment is not provided by the contractor
within the time prescribed thereof, such amenity shall be provided by
the principal employer within such time as may be prescribed.
2. All expenses incurred by the principal employer in providing the
amenity may be recovered by the principal employer from the
contractor either by deduction from any amount payable to the
contractor under any contract or as a debt payable by the
contractor.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Section 21: Responsibility For Payment Of
Wages
1. A contractor shall be responsible for :-
Payment of wages to each worker employed by him
Shall be paid before the expiry of such period as may be prescribed.
2. Duty of principle employer
Shall nominate a representative to be present at the time of disbursement of
wages
Shall be the duty of such representative to certify the amounts paid as wages
in such manner
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Section 21: Responsibility For Payment Of
Wages
3. It shall be the duty of the contractor to ensure the disbursement of wages in the
presence of the authorized representative of the principal employer.
4. In case the contractor fails to make payment of wages within the prescribed period or
makes short payment,
Then the principal employer shall be liable to make payment of wages in full or the
unpaid balance due,
Recover the amount so paid from the contractor either by deduction from any amount
payable to the contractor under any contract or as a debt payable by the contractor.
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
Thank You
THE CONTRACT LABOUR (REGULATION AND ABOLITION)
ACT, 1970
