CONTRACT LABOUR ACT 1970

(Regulation &Abolition)
 ABOUT THIS ACT

“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.”
 CHAPTERS
I. Preliminary

II. The advisory boards

III. Registration of establishments employing contract labour
IV. Licensing of contractors
V. Welfare and health of contract labour
VI. Penalties and procedure
VII.Miscellaneous
 PRELIMINARY I
Sec 1- Short title, extent, commencement and
application.
• It extends to the whole of India.
• Act came into force from 10th
February 1971
• Applicable and not applicable

Sec 2- Definitions
 THE ADVISORY BOARDS II

Sec 3- Central Advisory Board

Sec 4- State Advisory Board.

Sec 5- Power to constitute committees.

 REGISTRATION OF ESTABLISHMENTS III

Sec 6- Appointment of registering officers.

Sec 7- Registration of certain establishments.

Sec 8- Revocation of registration in certain cases.

Sec 9- Effect of non-registration.

Sec 10-Prohibition of employment of contract labour.

 LICENSING OF CONTRACTORS IV

Sec 11- Appointment of licensing officers.

Sec 12- Licensing of contractors.

Sec 13- Grant of licenses.

Sec 14- Revocation, suspension and amendment of licences.

Sec 15. Appeal.

 CONT………
• Every contractor has to obtain a license for employing contract labour

• In license the contractor has to mention

• Location(establishment)
• Nature of the job

• The contractor has to pay Rs.5-Rs.150 for licensing

• Condition which prescribed in license are working hours, fixation of

wages.
WELFARE AND HEALTH OF CONTRACT LABOUR V

Sec16. Canteens.

Sec 17. Rest-rooms.

Sec 18. Other facilities.

Sec 19. First-aid facilities.

Sec 20. Liability of principal employer in certain cases.

Sec 21. Responsibility for payment of wages

 PENALTIES AND PROCEDURE VI
Sec 22- Obstructions.
Sec 23-Contravention of provisions regarding employment of contract
labour.
Sec 24- Other offences.
Sec 25- Offences by companies.
Sec 26- Cognizance of offences.
Sec 27- Limitation of prosecutions
 MISCELLANEOUS VII

Sec 28- Inspecting staff.

Sec 29- Registers and other records to be maintained.
Sec 30- Effect of laws and agreements inconsistent with this Act.
Sec 31- Power to exempt in special cases.
Sec 32- Protection of action taken under this Act.
Sec 33- Power to give directions.
Sec 34- Power to remove difficulties.
Sec 35- Power to make rules.
Thank you
 DEFINITION
• Contract labour- “A workman is considered 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”

• Contractors – “Covered by the act are persons who undertake

to produce a given result for an establishment, through
contract labour, or who supply contract labour for any work of
the establishment, and include sub-contractors
PROHIBITION OF EMPLOYMENT OF CONTRACT
LABOUR
 Both central and State government
 May not be permitted
 Incidental to or necessary for the industry, trade….
 Perennial or perpetual nature
 Done ordinarily through regular workmen
 Capable of employing whole time workmen
 RESPONSIBILITY FOR PAYMENT OF WAGES

• Contractor is the responsible for making payment of wages to

his worker

• It shall be the duty of the contractor to ensure the

disbursement of wages in the presence of the authorized
representative of the principal employer

• In case the contractor fails to make payment of wages within

the prescribed period, then the principal employer shall be
liable to make payment of wages.
 PENALTIES

• Imprisonment for term of 3mon or fine of Rs.500/- to

Rs.1000/-
• Or both for various Contravention and offences.
• Additional fine also provide for continuing offences and
Contravention
 INSPECTING STAFF

• Government appoints such persons for inspection.

• Enter , at all reasonable hours, with such assistance (if any).
• Examine any person whom he finds in any such premises or
place and who, he has reasonable cause to believe, is a
workman employed therein.
• seize or take copies of register