Contract Labour (Regulation and Abolition) Act, 1970

INTRODUCTION

• The contract Labour (Regulation and Abolition) Act was enacted in the year 1970.
• As the title indicates, the Act does not provide for the total abolition of contract labour, but only for its abolition in certain circumstances, and for the regulation of the employment of contract labour in certain circumstances.
• Apart from abolishing contract labour in certain cases, the Contract Labour (Regulation and Abolition) Act also regulates the working conditions of contract labour.

PROVISIONS

•      Registration of Establishment Employing Contract Labour

•      Licensing of Contractors

•      Welfare and Health of Contract Labour

•      Penalties and Procedures

OBJECTIVE

•      Abolish the system of contract labour wherever possible and practicable

•   Improve service conditions of contract labour where abolition of the contractor labour was not possible

•   Prevent exploitation of contract labour and also regulate the working conditions.

•      Ensure timely payment of wages and provision of essential amenities

 

DEFINITIONS

UNDER SECTION - 2E: ESTABLISHMENT

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.

UNDER SECTION - 2B: CONTRACT LABOUR

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.

UNDER SECTION - 2C: 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 of 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;

UNDER SECTION - 2G: PRINCIPLE EMPLOYER

•      In relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf,

•      In a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named,

•      In a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named,

•      In any other establishment, any person responsible for the supervision and control of the establishment.

 

APPLICABILITY OF THIS ACT

SECTION 1((4) 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.

 

NON APPLICABILITY OF THIS ACT

SECTION 5(A)

It shall not apply to establishments in which work only of an intermittent or casual nature is performed.

Establishment shall not be deemed to be of an intermittent nature—

•  If it was performed for more than one hundred and twenty days in the preceding twelve months, or

•  If it is of a seasonal character and is performed for more than sixty days in a year.

ADVISORY BODIES

SECTION 3

The Central board consist of

•      A Chairman appointed by Central Government

•      The Chief Labour Commissioner

•      Members not exceeding 17 and not less than 11

SECTION 4

Similarly, with the State Board

•      A chairman appointed by State Government

•      The Labour commissioner

•      Members not exceeding 11 and not less than 09

REGISTRATION OF ESTABLISHMENT

SECTION 7

Every establishment which proposes to engage contract workers for its work is required to obtain a certificate of registration from the appropriate Government.

Procedure:

1. Employer should approach in registering office with Application form and Payment receipt

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

LICENSING OF CONTRACTORS

SECTION 11 -15

1. Every contractor who has 20 or more workers on any day of the month has to get a license for engaging contract labour for the work of any establishment.
2. License is issued by the authorized licensing officer.
3. Grant of Licences: The Contractor has to approach the Licensing authority along with

•      An application for the grant of license in Form IV

•      Security amount and fee deposited receipt

•      Certificate by the principle employer in Form V stating that the applicant is employed in him as contractor

•   The licensing officer, after making necessary investigations will grant a license in Form VI which can be renewed from time to time.

 

WELFARE AND HEALTH OF CONTRACT LABOUR

SECTION 16 CANTEENS

In every establishment where work requiring employment of contract labour is likely to continue for six months and wherein contract labour numbering one hundred or more is ordinarily employees by a contractor, one or more canteens have to be provided by the contractor for use of the contract labourers employed by him.

Such a canteen or canteens should be provided within the sixty days of the days of commencement of employment of contract labour. In case, such a contractor falls to provide a canteen within the aforesaid period, then the same shall be provided and maintained by the principal employer in an efficient manner

 

SECTION- 17 REST ROOMS

It is obligatory on the contractors to provide rest room or other suitable accommodations at every place, where contract labour is required to halt at night in connection with the work of an establishment and in which employment of contract labour is likely to continue for three months or more.

The Act further requires making provision of the following in the rest rooms:

•    Separate rest room to be provided for female employees;

•  That such rest rooms have adequate ventilation and light, protection against heat, wind, air, rain, and smooth, hard, and impervious floor surface and supply of clean drinking water.

•   In case, any contractor fails to provide the above amenities within the stipulated time, then the same are to be provided by the principal employer later can be recovered.

 

SECTION  18 OTHER FACILTIIES

It shall be the duty of every contractor employing contract labour in connection with the work of an establishment to which this Act applies, to provide and maintain–

(a) A sufficient supply of wholesome drinking water for the contract labour at convenient places;

(b) A sufficient number of latrines and urinals of the prescribed types so situated as to be convenient and accessible to the contract labour in the establishment; and

(c) Washing facilities.

 

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.

 

SECTION 20 LIABILITY OF PRINCIPLE EMPLOYER IN CERTAIN CASES

If any amenity required to be provided under section 16 Canteen, section 17 Rest Room, section 18 Other Facilities or section 19 First Aid Facilities for the benefit of the contract labour employed in an establishment is not provided by the contractor within the time prescribed therefor, such amenity shall be provided by the principal employer within such time as may be prescribed.

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.

SECTION 21 RESPONSIBILITY FOR PAYMENT OF WAGES

1)   A contractor shall be responsible for payment of wages to each worker employed by him as contract labour and such wages shall be paid before the expiry of such period as may be prescribed.

2)   Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed.

3)   It shall be the duty of the contractor or ensure the disbursement of wages in the presence of the authorized representative of the principal employer.

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