Contract labour (R&A) Act

1970

statistics
Year of enforcement 1970
Date of enforcement 5th September

objectives
Is to regulate the employment of contract
labor
To regulate the working conditions
To ensure the certain other benefits
available to them under the labor laws

definitions
Contractor
A person who undertakes to produce a
given result for an establishment through
contract labor
Who supplies contract labor for any work
in an establishment.

definition
Contract labor
1. a person who is working under contractor
2. A labor who dont have any connection
with the principal employer
3. A labor who is getting his salary from the
contractor

definitions
Establishment
Any place where any industry , trade ,
business, manufacturer or occupation is
carried on
Any office of the government

applicability
The act is applicable whole of India & extends to

1. every establishment wherein, the number of

workmen employed as contract labor is 20 or
more on any day of the preceding 12 months.
2. Every contractor who employs or employed as
contract labor, 20 or more workmen on any day
of the preceding 12 months.

Exemptions
This act is not applicable to those
establishments where work of intermittent
or casual nature is performed.

Power to make rules

Both the state and the central
governments
are
the
appropriate
authorities
responsible
for
the
administration of the act in their respective
states.
The government appoints the following
officers for the purposes of carrying out
the provision of this act:

 - registration officer
- licensing officer
- inspector

Employees covered under this act

Every person employed in an or in
connection
with any work of the
establishments with or without the
knowledge of the principal employer is
covered by this act.
The act does not apply to the following
categories,.

 Clerical
Supervisor
Other executives who appointed by the
contractor/employer

Obligation of the employer /

contractor
The
employer
must
register
the
establishment with the registering officer in
the prescribed form along with the
prescribed fee.
A contractor must apply for licence with
the licensing officer in the prescribed form
A contractor cannot undertake or execute
any work through contract labor if he does
not have a valid lisence.

 The contractor/ employer is required to

provide certain amenities for the welfare
and health of the contract labor.
Regular and timely payment of wages
must be ensured by the contractor.
The contractor must ensure to cover his
employees under ESI and EPF, if the
establishment is covered under ESI and
EPF.

Obligation of employees
He must act in conformity with the rules
laid down.

Major offences and penalties

Contravention of any of the provisions of
the act is punishable with fine of upto
Rs.1000 and or imprisonment upto to 3
months.