THE CONTRACT LABOUR (REGULATION AND ABOLITION)

ACT, 1970
OBEJCTIVE
An Act to regulate the employment of contract labour in certain establishments and
to provide for its abolition in certain circumstances and for matters connected
therewith.

LATEST AMENDMENTS

The Contract Labour (Regulation and Abolition) (Amendment) Act, 1986.

The Delegated Legislation Provisions (Amendment) Act, 2004.

COVERAGE
It applies
(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 employees or who employed on any day of the
preceding twelve months twenty or more workmen: Provided that the appropriate
Government may, after giving not less than two months' notice of its intention so to
do, by notification in the Official Gazette, apply the provisions of this Act to any
establishment or contractor employing such number of workmen less than twenty
as may be specified in the notification.
(c) It shall not apply to establishments in which work only of an intermittent or
casual nature is performed.
(d) If a question arises whether work performed in an establishment is of an
intermittent or casual nature, the appropriate Government shall decide that
question after consultation with the Central Board or, as the case may be, a State
Board, and its decision shall be final.

EXEMPTION
Power to exempt in special cases- The appropriate Government may, in the
case of an emergency, direct, by notification in the Official Gazette. The rules made
shall not apply to any establishment or any class of contractors.

ADMINISTRATION
THE ADVISORY BOARDS
(A)

CENTRAL ADVISORY BOARD

The Central Advisory Contract Labour Board shall consist of

(a) A Chairman to be appointed by the Central Government;
(b) The Chief Labour Commissioner (Central), ex-officio;
The Central Advisory Board formation is done through nomination of members by
Central Governmenta) Strength- Not >17 and not <11
b) Representation- Government, railways, coal industry, mining industry,
contractors, workmen, and any other on the discretion of Central
Government.
c) Representation of workmen should not be less than principal
employer/contractor.
(B)

State Advisory Board-

State Advisory Contract Labour Board shall consist of(a) A Chairman to be appointed by the State Government;
(b) The Labour Commissioner, ex-officio, or in his absence any other officer
nominated by the State Government in that behalf;
State Advisory Boarda) Constituted by State Government
b) Strength- Not >11 and not <9
c) Representation- Government, the industry, the contractors, the workmen and
any other on the discretion of State Government
d) Representation of workmen should not be less than principal
employer/contractor.

PROVISIONS
LIABILITIES OF THE PRINCIPAL EMPLOYER (SEC. 20)

To pay wages incase the contractor fails to do so

To nominate a representative to be present at the time of disbursement of
wages by the contractor
To provide welfare and health facilities
Right to recover the expenses involved from the Contractor through bills
payable.
Maintain a register and records in form XII giving particulars likeNo of Contractors and contract labour employed.
Nature of work.
Rate of wages.
Display Notice at a conspicuous place in English and Local Language
containing information likeRate of wages.
Hour of work.
Wage period.
Date of payment of wages.
Name and address of the Inspectors.
Submission of yearly return to Licensing Officer in Form XXV.

LIABILITIES OF THE CONTRACTOR

Maintain a register in form XIII containing information likeMuster Roll

Wages
Deductions.
Over time
Fines
Advance
Wage slips
Issue an employment card in form XIV to each worker and to issue a service
certificate on termination of employment in form XV
Submission of half yearly return to Licensing Officer in Form XXIV.

PENALTIES

Imprisonment for a term which may extend to three months,

Or with fine which may extend to five hundred rupees,
Or with both.

Assessment

Pros
Check on labour exploitation
Improvement in facilities & job benefits.
Cons
Act doesnt entirely abolish contract labour
No firm basis for the courts to pass judgment
Ambiguity

The Commission also recommends the following:

a) the contract labourers are extended all the benefits that are extended to a
regular employee under labour and welfare legislations.
b) all debts owed by them to their contractors be waived
c) contract laborers be treated as workmen within the meaning of the Workmen's
Compensation Act 1923 for accidents arising during the course of employment
d) provisions of the Industrial Disputes Act 1947 be applicable to the matters related
to contract labourers
e) principles of equal work for equal pay as envisaged in Article 39 (d) of the
Constitution should be specifically incorporated in the Act.
f) Women labour/welfare officers be compulsorily provided in establishment having
strength of more than 100employees.
g) Women workers should not be made to work for more than 12 hours in a working
day and they should not be compelled to work in the nights.

Source: http://ncw.nic.in/frmReportLaws33.aspx
http://pblabour.gov.in/pdf/acts_rules/contract_labour_regulation_and_abolition_act_1
970.pdf
www.advocatekhoj.com