CONTRACT LABOUR:

WHAT TO LOOK OUT FOR?

Presented By:
Aswathi Unni (06)
Baiju Desai (08)
Karan Vashee (24)
Ravi Thakkar (34)
Sanyam Sanghavi (35)
Yash Gor (40)
Contract Labour (Regulation
& Abolition) Act, 1970

The main objective of this act is to regulate

the contract labour and abolish it in certain
cases.

This act is to prevent exploitation of contract

labour and also to introduce better working
conditions.
Applicability Non-Applicability
Every industry engaging 20 or more workers
Every contractor engaging 20 or more workers
Extends to the whole of India

Non-Applicability
Intermittent nature of work (performed for more than 120
days in preceding 12 months)
Seasonal nature and performed for more than 60 days in a
year
Establishment situated in SEZ
Definitions
Contractor: A person who undertakes to produce a given
result for the establishment through a contract labour
(other than mere supply of goods or articles of
manufacture) or who supplies contract labour for any work
of the establishment and includes a sub-contractor.

Workmen: any person employed in or in connection with

the work of any establishment to do any skilled,
semiskilled or un-skilled manual, supervisory, or clerical
work for hire or reward, whether the terms of employment
be express or implied
Liabilities of the Principal
Employer
To obtain certificate of registration and comply with all the
necessary provisions for registration of the establishment
Must maintain a register of contractors
Pay wages in case the contractor fails to do so (recover amount
from contractor)
Nominate a representative to be present at the time of
disbursement of wages by the contractor
Provide welfare and health facilities (recover from contractor)
Responsible that any contract labour must not engage in
hazardous or such work which can cause him the injury at work
Sending Annual Report to the Registering Officer within 15th
February of every year
Liabilities of the Contractor
To obtain the license from the licensing authority and furnish
to them all the particulars and documents as are necessary
Maintain Register of Muster roll, Wages, Deductions, Over
Time, Fines, Advances etc.
Issuing of Employment card (Joining) & Service certificate
(Terminating)
All facilities and amenities are to be provided by the contractor
Primarily responsible for the disbursement of wages
Send Half-yearly reports to the local labour department in
December and June
Rights of the Labour
Entitled for the wages including overtime wages and
allowances as stipulated for their work at the establishment
(must be in accordance with Minimum Wages Act)
Have the right to be provided the safety measures at the
establishment and immediate health service in case of any
injury (women labours are entitled for the separate
washrooms, restrooms)
Entitled not to be employed in any work which is
prohibited under any law
Registers which are maintained
Gate Pass register
Attendance Register of Contract Labour
Daily entry of the contractor report
Register having no. of contract Labour
Prohibition of Employment of
Contract Labour
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
Shall have regard to the condition of work and benefits
provided for the contract labour and other relevant factors:
Whether the work done is necessary in the establishment
Whether it is of perennial nature (in regards with the nature of
industry, trade, business in that establishment
Whether it is done ordinarily through regular workmen in that
establishment or an establishment similar there off
Whether it is sufficient to employ considerable number of whole-
time workmen
Issues
Whether the Act itself provides the workers of an industry,
the right to get absorbed by the industry after contract
labour is abolished there?
In the establishments where contract labour was abolished owing
to the application of the Act, these laborers wanted to get absorbed
in the establishment directly
Varying opinion of the courts
Act has no provision regarding the same as the Act does not
completely abolish contract labour
Supreme Court: insertion of certain clauses in the contract with the
contract laborers by the industry does not give them a right to
escape from the duty of providing the contract laborers rights
Lack of job security
Issues Cont…
There are cases where the number of permanent workers is
just a few hundred but that of the contract workers are
several thousands
Though contract workers enjoy provident fund benefit, it is
often a burden to them rather than a benefit
…..THANK YOU…..