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Contract Labour

Prohibition &
Abolition) Act,

Presented by:

Priyanka Burman: 19HS61007

Sakshi: 19HS61015

Appropriate govt.

(i) In relation to an establishment in respect of which the appropriate Government under the Industrial
Disputes Act, 1947 (14 of 1947), is the Central Government;
(ii) In relation to any other establishment, the Government of the State in which that other
establishment is situated.


a workman shall be deemed to be employed as "contract labour" in or in connection with the work-of:-
an establishment when he is hired in or in connection with such work by or through a contractor, with or
without the knowledge of the principal employer


“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 labor or who supplies contract labour for any work of the
establishment and includes a sub-contractor
Appropriate govt.
Advisory board

Section 3 Section 4
Central Govt. State Govt.
Constitutes Central Constitutes State
Advisory Board Advisory Board
Which performs work Which performs work
assigned by CG and assigned by SG and
advises CG advises SG
Registration of Establishment
Section (6-9)


Establishment applies
Appt. Govt. through
> gets registered (fee Revoke Certi Effect of Non
NIOG assigns R.O. Rs. 20-500) registration
Section 6 Section 7 Section 8 Section 9
Registration of Contractor
IF Establishment or
Contractor is not happy
Granting of license with their respective
• Valid for 12 months officers can appeal to
Appt. Govt. appellant officer in 30
. appoints L.O. • Non transferable
days with adequate fee
Section 11 Section 13 Section 15

Section 12 Section 14
Licensing of L.O. can revoke the
contractor. license.
• Contractor applies
to L.O.
• Fees from Rs. 5-125
Welfare and Health of Contract labour
(Section 16-20)

Canteen Rest Room Facilities First Aid Contractor

Sec. 16 Sec. 17 Sec. 18 Sec. 19 is liable
Sec. 20
Contract Need to stay at night • Drinking water Accessibility during • Contractor is
labours>=100 working hours liable not
• Loo and Urinals establishment
• washing facilities • May deduct from
Responsibility for Payment of Wages
Section 21

Section 21(1) Section 21(2) Section 21(3) Section 21(4)

• Complaint • Principal • Contractor • If contractor is
against Employer is should pay unable to pay
contractor for obliged to wages in wages then
non payment of presence of P.E. is liable to
proper wages appoint
representative P.E. or pay and later
Representative deduct it.
Penalty under Act
Section 22-24

Section 22 Section 23 Section 24

Obstruct Inspector Contravention of Miscellaneous
or say no to act
produce documents

Up to 3 months Up to 3 months Up to 3 months

imprisonment or Rs imprisonment or imprisonment or Rs
500 fine or both Rs 1000 fine or 1000 fine or both
both +Additional
100 Rs per day
Section 26 Section 28
Cognizance of offense Appointment, power, duty
01 By any judge other then 03 of Inspector 05
magistrate of 2nd level

Section 25 Section 27 Section 29

Offense by company 02 Limitation of prosecution 04 Register maintain(60+
• Within 3 months(coplaint brought to labor in company)
knowledge of inspector)
Exemption if covered
• Within 6 months (disobey of written order
by inspector) under labor abolition act
Appointment, power, duties of Inspector
Section 28

Section 28(1) Section 28(2) Section 28(3) Section 28(4)

• App. Govt. May • Powers of • Legal duty to • Search or

appoint provide seizure
• Enter documents to
premises inspector
• Examine any
• Call for info.
• Seizure
Thank You