Contract Labour (Regulation & Abolition) Act, 1970

The main objective of this act is to regulate the contract labour and abolish it in certain cases.

Applicability
Every industry engaging 20 or more workers on contract basis.
Every contractor engaging 20 or more workers.

Obtaining registration & license

Apply in form I for registration in triplicate copy along with prescribed fees. Apply in form IV for license in triplicate copy along with license & security fees. For license form V is given by Principal employer to contractor.

Provisions for temporary registration & license

For work of immediate nature Principal employer/ Contractor can apply for temporary registration/ license which is valid up to 15 days only.

Obligation of Principal employer

Register of contractors
Annual return (on or before 15th Feb) Notice of Commencement/ Completion

Form XII
Form XXV

Form VI B

Obligation of Contractor
Renewal of license Register of workman Employment Card Service Certificate Muster Roll Wages register Wage slip Form VII Form XIII Form XIV Form XV Form XVI Form XVII Form XIX

Contd
Deduction for damage/loss Register of fines Register of advances Register of over-time Half yearly return Notice of Commencement /Completion Form XX Form XXI Form XXII Form XXIII Form XXIV Form VI A

Welfare Facilities
Canteen Rest rooms Urinals, Latrines Drinking Facilities First Aid Facilities Section 16 Section 17 Section 18 Section 19

Principal employer will have to provide these facilities if not provided by contractor.

Applicability of other Act

Persons cover under this act will be covered under: I) Factory Act, 1948 II) Employees Provident Fund & Miscellaneous Provisions Act, 1952 III) Employees State Insurance Act, 1948 / Workmen Compensation Act, 1923

Contd.
IV)Payment of Bonus Act, 1965 V) Minimum Wages Act, 1948
VI)Payment of Wages Act, 1936

Types of Contract Labour

Job Order
Labour Supply

Sanctioned

Fixed Additional Supply

Immediate nature

Types of Contract
Job Order Sanctioned Labour Supply Additional Labour Supply A.M.C. For Specific Work

Procedure of Engaging
Contract is awarded by the concerned department /commercial department. For B.S.R. concerned deptt. send a job request to the purchase deptt. Purchase deptt. go through by the following steps. I) Enquiry II) Offers III Comparative Statement IV) Negotiation V) Award the Contract

Administration of contract labour

Work Order is given by the concerned deptt. to the Contractor. Contractors fill in an application Form for engaging contract labour every month /new entry. Concerned department recommends the no. of labourers. Safety department imparts training to the labourers.

Contd
Personnel department gives its approval only after being assured about no. of the workers in the license of the contractor & workman compensation Insurance. Employment Card/Gate pass is issued by the Security department.

Gate pass is issued only for a month.

Workmen who have gate pass can enter in the premises

SAP System
Work order is released by concerned deptt. in the SAP system Commercial deptt.release Work order in system
Concerned deptt. Create the indent Indent is created for L/S not for B.S.R. Personnel deptt. marks the entry in SAP on the basis of their counting. Overtime of the labour is marked by the concerned deptt.

Payment of Wages
Bills of the contractor of L/S is passed on the basis of the entry in SAP. Payment to the contract labour is disbursed in Contractor Yard. Payment to the contract labour is disbursed before the management representative Representative stamps the register & signs on it.

Registers which are maintained

Gate Pass register Comparison Register Daily entry of the contractor report Register having no. of contract labour (B.S.R. , L/S, Additional L/S, Break down)