The Contract Labour

(regulation And
Abolition) Act, 1970

By:
Arunima Sharma
Arpita Ghosh
Bushra Zaheer Khan
Md. Arif

AGENDA
Object
Applicability
History
Terminology
Registration & Licensing
Important sections
Latest amendments
Linkage with other acts
Case studies
Conclusion (Pros & cons)

INTRODUCTION

Objective: 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.

Applicability :
Employer

Contractor

20 or more workmen
employed on any day
in the preceding
12months

HISTORY
1956- Service conditions of labourers,
a topic of
concern
1960- Vaccum Refining Co. case
1961- Indian labour conference
1962-Recommendation to the bill
1967- Bill moved to lok Sabha
1968- Reference to Joint committee
1970- Bill passed
1971- Enforcement of Act

Terminology
Establishment
Contractor
Employer
Intermittent
Revocation
Appropriate

government

Registration (Sec 7) & Licensing (Sec 12)

Registration
This is taken by the
Principal Employer.

License
This is taken by
Contractor

This is not renewable on

year to year basis

This is valid for only one

year / should renewed before
due date.

Certificate of Reg.. Need

not be displayed at the
establishment by P.E.

License shall be displayed

prominently at the premises
where the contract work is being
carried on.

Registration (Sec 7) & Licensing (Sec 12)

Registration

License

Issued on Payment of
fees.

Issued on Payment of Fee

& Security money

For only Bank Draft

Required.

Bank Draft + Certt. Of P.E. Is

required (Form V)

No Conditions are
attached as a part certt.

There is full Annx. Containing

conditions for fulfillment by
contractor.

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 like
No 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 like

Rate 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 like

Muster 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.

Important
Sections

(Sec. 10) Prohibition of employment of contract

labour.
(Sec. 9) Effect of non-registration.
(Sec. 14) Revocation, suspension and
amendment of
licences.
(Sec. 16) Canteens.
(Sec. 17) Rest-rooms.
(Sec. 30) Effect of laws and agreements
inconsistent
with this Act. Sec 20
(Sec. 21) Responsibility for payment of wages.
(Sec. 22) Obstructions.
(Sec. 23) Contravention of provisions regarding

Latest Amendments!!
The

Contract Labour (Regulation and

Abolition) (Amendment) Act, 1986.

The

Delegated Legislation Provisions

(Amendment) Act, 2004.

Acts applicable to Contract

Labour
( Linkage with other acts)
1.
2.
3.
4.
5.
6.
7.

Factories Act 1948.

Employees Provident Funds &
Miscellaneous Provision Act 1952.
The Employees State Insurance
Act 1948.
The Payment of Wages Act 1936.
The Minimum Wages Act 1948.
The Industrial Disputes Act 1947.
The Workmans Compensation Act
1923.

Case Studies
R.K.

Panda v. Steel Authority of India

Air India Statutory Corp. v. United
Labour Union.
Steel Authority of India Ltd. v.
National Union Water Front Workers

Conclusion!!!
Pros

Questions??

Thank
you