CONTRACT LABOUR (REGULATION AND

ABOLITION) ACT, 1970

MANORANJAN DHAL
WHAT ARE THE JOBS WHICH CAN BE
ASSIGNED TO CONTRACT LABOUR
 Not perennial in nature (but not defined)
 If the job exists for sufficient duration can be termed as
perennial
 Govt. has not prohibited
 CONTENTS
 Definitions
 Employing Contract Labour

 Licensing of Contractors

 Welfare and Health of Contract Labour

 Penalties
 OBJECTIVE OF THE ACT
 CLA is a social welfare legislation to further interest of
community of the workmen.
 Regulate the conditions of contract labour

 And to abolish, if it is found to be of perennial nature.

 APPLICATION

 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.
 To every contractor who employs or who employed on any
day of the preceding twelve months twenty or more
workmen.
 But not applies to establishments in which work only of an
intermittent or casual nature is performed.
 work performed in an establishment shall not be deemed
to be of an intermittent nature—
 (i)   if it was performed for more than one hundred and
twenty days in the preceding twelve months, or
 (ii)   if it is of a seasonal character and is performed for
more than sixty days in a year.
 DEFINITIONS
 A workman shall be deemed 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, with or without the
knowledge of the principal employer.
 CONTRACTOR
 A person who undertakes to produce a given result for
the establishment, other than mere supply of goods and
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.
 PRINCIPAL EMPLOYER
 In any office of the Government or a local authority-
Head of that office or department
 In a factory, mine – owner or occupier of the
factory/mine or manager of the factory/mine.
 Person responsible for the supervision and control of the
establishment
 WORKMAN
 Any person employed in or in connection with the
work of any establishment to do any skilled, semi-
skilled, or unskilled manual, supervisory, technical
or clerical work for hire or reward, whether the
terms of employment be expressed or implied, but
does not include
- Person in managerial or administrative capacity
- Supervisor drawing salary more than Rs. 500 per
month
WORKMAN ALSO EXCLUDES
 A person to whom any articles and materials are given
out by or on behalf of the principal employer to be made
up. Cleaned, washed, altered, ornamented, finished,
repaired, adapted or otherwise processed for sale for the
purpose of the trade or business of the principal
employer

 The process is to be carried out either in the home of the

out-worker or in some other premises, not being
premises under the control and management of the
principal employer.
 STATE AMENDMENT - ANDHRA
PRADESH

“core activity of an establishment” means any activity for which the establishment is set up and includes any activity which is
essential or necessary to the core activity, but does not include,—
(1)   sanitation works, including sweeping, cleaning, dusting and collection and disposal of all kinds of waste;
(2)   watch and ward services including security service;
(3)   canteen and catering services;
(4)   loading and unloading operations;
(5)   running of hospitals, educational and training institutions, guest houses, clubs and the like where they are in the nature of
support services of an establishment;
(6)   courier services which are in nature of support services of an establishment;
(7)   civil and other constructional works, including maintenance;
(8)   gardening and maintenance of lawns, etc.;
(9)   house keeping and laundry services, etc., where they are in nature support services of an establishment;
 (10)   transport services including ambulance services;
 (11)   any activity of intermittent in nature even if that constitutes a core activity of an establishment; and
 (12)   any other activity which is incidental to the core activity:
Provided that the above activities by themselves are not the “core activities” of such establishment.’
PROHIBITION OF EMPLOYMENT OF
CONTRACT LABOUR
 The appropriate government may prohibit, by
notification in the official gazette, employment of
contract labour in any process, operation or other work
in any establishment.
 CHECK LIST

 (a)   whether the process, operation or other work is incidental to, or

necessary for the industry, trade, business, manufacture or
occupation that is carried on in the establishment;
 (b)   whether it is of perennial nature, that is to say, it is of sufficient
duration having regard to the nature of industry, trade, business,
manufacture or occupation that is carried on in that establishment;
 (c)   whether it is done ordinarily through regular workmen in that
establishment or an establishment similar thereto;
 (d)   whether it is sufficient to employ considerable number of
whole-time workmen.
 CHECK LIST

 the activities are such that they do not require full time
workers for the major portion of the working hours in a
day or for longer periods, as the case may be;
 any sudden increase of volume of work in the core
activity which needs to be accomplished in a specified
time.
 If a question arises whether any process or operation or
other work is of perennial nature, the decision of the
appropriate Government thereon shall be final.
 WELFARE AND HEALTH OF CONTRACT
LABOUR

 Canteen- 100 or more employees

-work continues for six months
-within 60 days of employment
 Rest Rooms
– Likely to continue for three months
- Within 15 days of employment
 Drinking water
WELFARE AND HEALTH OF CONTRACT
LABOUR
 Latrines and Urinals –
 at least one lartine for every 25 female
 at least one lartine for every 25 male

 Washing facilities
 Separate adequate screening facility for the use of male and
female employees
 First Aid
 One box for 150 contract labour
FIRST-AID BOX SHALL CONTAIN (ORGANIZATION
HAVING MORE THAN 50 EMPLOYEES)
1. 12 small size dressings
2. 6 medium size sterilized dressings
3. 6 large size sterilized dressings
4. 6 large size sterilized burn dressings
5. 6 (15gms) packets sterilized cotton wool
6. 1 (60ml) bottle containing a two per cent alcohol solution of iodine.
7. 1 (60 ml) bottle containing salvolatile having the dose and mode of administration
indicated on the level
8. 1 roll of adhesive plaster
9. 1 snake bite lancet
10. 1 (30gms) bottle of potassium permanganate crystals
11. 1 pair of scissors
12. 1 copy of the first aid leaflet issued by director general of Factory Advice Services.
13. A bottle containing 100 tablets of aspirin
14. Ointment for burns
15. A bottle of suitable surgical anti-septic solution
 PAYMENT OF WAGES

 Contractor shall be responsible for payment of wages

 Principal employer shall nominate a representative to be present
at the time of disbursement of wages
 If contractor fails to make the payment then the principal
employer is liable to pay.
 No wage period shall exceed one month.
REGISTERS AND RECORDS
Record type Liability

Principal employer
¢Register of contractors –
Contractor
¢Register of persons employed
Contractor
¢Employment card
Contractor
¢Service certificate
Contractor
¢Muster roll, wage registers, deduction
register and overtime register
Contractor
¢Register of fines
Contractor
¢Register of advances
Contractor
¢Wage slip
 PENALTIES

 Obstructing the inspector-

- imprisonment up to 3 months or fine up to Rs. 500 or
both
 Willfully refuse to produce document before inspector-
-imprisonment up to 3 months or fine up to Rs. 500 or
both
 Contravene any condition of license
-imprisonment up to 3 months or fine up to Rs. 1000 or
both
- in continuance – Rs. 100 per every day
 OBLIGATIONS OF THE PRINCIPAL
EMPLOYER
 Issuecertificate to Contractor (form V)
 Ensure contractor has valid licence

 Ensure payment of wages

 Should not supervise or control contract

employees
 The work where contract labor is engaged is not
perennial in nature.
 Discipline of the contract labor is regulated by
the Contractor.
 OBLIGATIONS OF THE PRINCIPAL
EMPLOYER
 Contract should not specify the number of persons
required but must quantify the quantity of work
 Leave to the employee must be sanctioned by contractor

 No advance should be paid to contract employees by

principal employer
 Contractor must ensure of maintenance of all types of
record.
 Must comply to the provision of CLA., ESI, PF with
own code.
 Submit annual return