1.

8_ Duties towards payment to contractor’s

labour and maintenance of records as per labour
laws.

Period 2

1
ENGINEERING
CODE
2
 Initial Records

• 1301. Initial Records on the Engineering Department

relate to the payment of the following :
• (i) Wages of labourers and members of work charged
establishment.
• (ii) Payments to contractors and others for work
done, services rendered and materials supplied.
• (iii) Pay and allowances of Construction staff and
other miscellaneous payments.
• The method of preparation of initial records in all
these cases is described in the following paragraphs.
 Muster Sheets

• 1302. Muster Sheets.--The wages of labourers and

work charged establishment are charged through the
muster sheets on which their daily attendance and
absences are marked. Since some of the labour
employed may be those governed by the Minimum
Wages Act, 1948, the Muster Roll form prescribed
under this Act has to be followed if separate Muster
Rolls are adopted. The prescribed form is available as
Form No. 91 in Appendix 9 of Indian Railways
Establishment Manual.
 Register of Wages
• 1303. Register of Wages.--Where separate Muster Rolls are used,
since some of the labour employed may be governed by the
Minimum Wage Act 1948, a Register of Wages as prescribed
[Form E 1303] under this Act has to adopted. Alternately the
combined Muster Roll and Labour Pay sheet indicated in para
1304 may be adopted as pay sheet or register of wages.
• Form E.1303  (Continued to........ List of forms)
•  
• 1304. Muster Roll and Labour Pay Sheet.-- A combined Muster
Roll and Labour Pay Sheet can also be adopted. For this purpose
the following form may be used.  
• Form E.1304   (Continued to........ List of forms)
 Muster Sheets
• 1305. One muster sheet should be maintained for each gang
of labourers or a convenient group of work-charged
establishment.
• Before the commencement of a wage month, the Assistant
Engineer should issue the requisite number of blank muster
sheet forms to each supervisor for the purpose of recording
the daily attendance of the labour working under him.
• Each muster sheet form so issued should bear the initial of
an officer not below the rank of Assistant Engineer on the
top right corner as a token of its authenticity.
• The muster sheet should be written up daily by the person
deputed for the purpose, generally the subordinate under
whom the labour or the work charged staff concerned is
employed.
 Daily Attendances
• 1306. The daily attendances and absences of labourers should be
recorded in the muster sheets in such a way as---
• (i) To facilitate the correct calculation of the net wages of each
person for the period of payment.
• (ii) To render it difficult to tamper with or make unauthorised
additions to or alterations in, entries once made; and
• (iii) To facilitate the correct classification of the cost of labour by
works and sub-heads of works where necessary.
• The subordinate maintaining a muster sheet should, therefore,
note in words the total number of persons present on each day
and give brief remarks as to the work or work on which the labour
was employed each day at the bottom of the sheet.
• Assistant Engineers should check muster sheets as frequently as
possible and record on the spot the number of men present in
words and in ink, over their initials.
 Muster Sheets
• 1307. At the end of every wage month the muster sheets should be
closed, the amount of gross wages due to each labourer or work-
charged employee should be worked out and the totals struck. The
muster sheets so completed should be collected by the supervisor and
submitted through the Assistant Engineer to the Executive Engineer
with an abstract of all muster sheets submitted for checks and payment.
In the office of the Executive Engineer the muster sheets should be
checked under the supervision of the Divisional Accountant before they
are sent to the Accounts Officer for arranging payment.
• 1308. Payments of muster sheets should be made and witnessed by the
officer of the highest standing available on the spot. The witnessing
officer should certify to the payments individually or by group, a the
same time, specifying both in words and in figures, at the foot of the
muster sheet, the total amount paid on each date. Assistant Engineers
should witness payments of all labour under one or more subordinates
each month. This should be done without warning.
 Unpaid Wages
• 1309. Unpaid amounts, should, in the case of a muster sheet for men
employed on several works, be considered as relating to the most
costly work in the group and subsequent payments of unpaid
amounts should be debited to that work, if the accounts of the work
are still open, otherwise to the same head of the capital account.
• 1310. Unpaid Wages.-Unpaid amounts on muster sheets will be paid
on Extract Muster Sheets/Pay Orders. In all such cases a counter
reference should be made by the executive officer against the
corresponding entry in the Unpaid Wages list form A.1954 supplied by
the Cashier. This precaution is necessary to avoid more than one
payment. Unpaid amounts on muster sheets will not be posted in the
Register of Works or Accounts.
• 1311. Muster sheets should never be prepared in duplicate. They
should not ordinarily pass beyond the office of the responsible
disburser. The Accounts Officer may, however, send for the paid
muster sheets in connection with any accounts discrepancy or any
investigation.
 Payment of daily labour
• 1312. The payment of daily labour through a contractor instead of
through muster sheets and labour pay sheets in the usual way is
objectionable in principle. In a case of great emergency it may
sometimes be found impossible to employ labour otherwise than
through a contractor. Should it be possible in such cases to
determine the quantities of work done after its completion or at
intervals during its progress the payment to the contractor should
be on the basis of work actually excecuted.
• But if, as in the case of urgent repair of breaches of lines this
method of payment is not practicable, it is permissible to pay the
contractor on the basis of number of labourers employed day by
day, his own profit or commission being included in the rates
allowed.
 Payment of daily labour
• When this course is adopted, a report of the number of
labourers of each class employed, day by day should be made
in the following form (Form E. 1312) by the subordinate
incharge of the work daily to the Assistant Engineer to enable
the latter to keep a check on the expenditure and to deal with
the contractor's claim when received.
• To avoid disputes the contractor should be asked to sign the
Daily Report of Labour (sent by the subordinates) in token of
their acceptance. The use of muster sheets or the
measurement book is not permissible in such cases.
 Form No. 1312
S. No................................. ..........................................RAILWAY
ENGINEERING DEPARTMENT
Division............................. Office........................
DAILY REPORT OF LABOUR EMPLOYED ON ......................... SECTION
Sub-Division .................................................
Division...........................................
Name of work ......................................................................................................
Daily report for ....................................................................................................

.................................... ....................................
Signature of Subordinate-in-charge    Contractor's signature
Designation …………………………….. Station……………………………..
Station…………………………….. Date……………………………..
Date……………………………..
 
 Register of Wages

• 1303. Register of Wages.--Where separate Muster

Rolls are used, since some of the labour employed
may be governed by the Minimum Wage Act 1948, a
Register of Wages as prescribed [Form E 1303] under
this Act has to adopted. Alternately the combined
Muster Roll and Labour Pay sheet indicated in para
1304 may be adopted as pay sheet or register of
wages.
• Form E.1303 
GCC_WORKS

14
 Clause 54. Wages To Labour
• The Contractor shall be responsible to ensure compliance with the provision
of the Minimum Wages Act, 1948 (hereinafter referred to as the “said Act”)
and the Rules made thereunder in respect of any employees directly or
through petty Contractors or sub-contractors employed by him for the
purpose of carrying out this contract.
• If, in compliance with the terms of the contract, the Contractor supplied any
labour to be used wholly or partly under the direct orders and control of the
Railways whether in connection with any work being executed by the
Contractor or otherwise for the purpose of the Railway such labour shall, for
the purpose of this Clause, still be deemed to be persons employed by the
Contractor.
• If any moneys shall, as a result of any claim or application made under the
said Act be directed to be paid by the Railway, such money shall be deemed
to be moneys payable to the Railway by the Contractor and on failure by the
Contractor to repay the Railway any moneys paid by it as aforesaid within
seven days after the same shall have been demanded, the Railways shall be
entitled to recover the same from Contractor’s bills/Security Deposit or any
other dues of Contractor with the Government of India.
15
 Provisions of The Minimum Wages Act, 1948

► Objectives:
To provide minimum statutory wages for scheduled employments
Provides for the maximum daily working hours, weekly rest day and
overtime.
Rates fixed under Minimum Wages Act prevail over the rates fixed
under award/agreement.
 Provisions of The Minimum Wages Act, 1948
► Section 2(e) “Employer" means any person who employs, whether
directly or through another person, or whether on behalf of himself or
any other person, one or more employees in any scheduled employment,
and includes,
(iv) any person responsible to the owner for the supervision and control of
the employees or for the payment of wages;
 Section 2(i) “Employee" means any person who is employed for hire or
reward to do any work, skilled or unskilled, manual or clerical; and
includes an out-worker (to whom any articles or materials are given out by
another person to be made up, cleaned, washed, altered, ornamented,
finished, repaired, adapted or otherwise processed for sale for the
purposes of the trade or business of that other person where the process is
to be carried out either in the home of the out-worker or in some other
premises); but does not include any member of the Armed Forces
Provisions of The Minimum Wages Act, 1948

► Section 3 Fixing of minimum rates of wages-

(1) Ministry of Labour, Central Govt for Railways,-
(a) fix the minimum rates of wages payable to employees
(b) review at such intervals as it may think fit, such intervals not
exceeding five years, the minimum rates of wages so fixed
(2) Types of Wages--
(a) a minimum rate of wages for time work ("a time rate");
(b) a minimum rate of wages for piece work ("a piece rate");
(c) a minimum rate of remuneration for piece work for securing a
minimum rate of wages on a time work basis ("a guaranteed time rate");
(d) a minimum rate to apply in substitution for the minimum rate, in
respect of overtime work done by employees ("overtime rate")

Issued time to time by Ministry of Labour {Generally Twice in a year} and reiterated by
E(LL) directorate of Railway Board
 Provisions of The Minimum Wages (Central)
Rules, 1950
► Rule 21 Time and conditions of payment of wages and the deductions
permissible from wages
{(4A} Every employer shall send annually a return in Form III so as to
reach the Inspector not later than the 1st February following the end
of the year to which it relates}
► Rule 23 Weekly day of rest
(1) an employee shall be allowed a day of rest every week which shall
ordinarily be Sunday, but the employer may fix any other day :
PROVIDED that the employee has worked under the same employer
for a continuous period of not less than six days:
(2) Any such employee shall not be required or allowed to work on the
rest day unless he has or will have a substituted rest day for a whole
day on one of the five days immediately before or after the rest day:
PROVIDED that no substitution shall be made which will result in the
employee working for more than ten days consecutively without a rest
day for a whole day.
(4) An employee, in case works on the rest day, he shall be paid wages
at the overtime rate :
 Provisions of The Minimum Wages (Central)
Rules, 1950
► Rule 21
► Rule 24 Number of hours of work which shall constitute a normal
working day
(1) The number of hours in a normal working day, shall be - (a) in the case
of an adult – 9 hours; (b) in the case of a child – 4 &1/2 hours
(2) The working day of an adult worker shall be so arranged that inclusive
of the intervals of rest, if any, shall not spread over more than twelve
hours on any day.
(4A) No child shall be employed or permitted to work for more than 4 ½
hours on any day.
► Rule 25 Extra wages for overtime (1) When a worker works in an
employment for more than nine hours on any day or for more than forty-
eight hours in any week, he shall in respect of overtime work, be entitled
to wages -at double the ordinary rate of wages;
(2) A register of overtime shall be maintained by every employer “in Form
B”
 Provisions of The Minimum Wages (Central)
Rules, 1950
► Rule 26 Form of registers and records.
(1) A register of wages
(2) A wage slip shall be issued at least a day prior to the
disbursement of wages in Form XI.
(3) Every employer shall get the signature or thumb-impression
of every person employed on the {register of wages} and wage
slip duly authenticated by the employer or any person
authorized by him.
(5)A muster roll shall be maintained in Form V “in Form D and
the attendance of each person shall be recorded daily in that
form within 3 hours of the commencement of the work shift.
Rule 26A. Preservation of registers –
A register required to be maintained under various rules shall be
preserved for a period of three years after the date of last entry
made therein.
 Liable Penalties due to Offences under The Minimum Wages
Act

SN Offence Penalty
1 Payment of wages at less than Imprisonment upto 6
the minimum rates fixed or months or fine upto Rs.
amounts due under the Act 500/- or both

2 Contravention of any rule or -do-

order made u/s 13 in respect of
normal working hours
 Clause 55. Provisions Of Payments Of Wages
Actthe provisions of the Payment
The Contractor shall comply with
of Wages Act, 1936 and the rules made thereunder in respect of
all employees employed by him either directly or through petty
Contractors or sub-contractors in the works.
If in terms of the contract, the Contractor directly or through
petty Contractors or sub-contractors supply any labour to be
used wholly or partly under the direct orders and control of the
Engineer whether in connection with the works or otherwise for
the purpose of the Engineer, such labour shall nevertheless be
deemed to comprise persons employed by the Contractor and
any moneys payable shall be paid by the Contractor and the
Engineer may on failure of the Contractor to repay such money
to the Railways deduct the same from any moneys due to the
Contractor in terms of the contract.

29
Provisions of The Payment of Wages Act, 1936

⮚ Objectives:
(i) Regulating payment of wages, imposition of fines and
deductions from wages, and
(ii) Eliminating all malpractices by laying down wage periods and
time and mode of payment of wages.
Provisions of The Payment of Wages Act, 1936
⮚ Section 1(4) application –
It applies in the first instance to the payment of wages to persons
employed to persons employed upon any railway by a railway
administration either directly or through a sub-contractor, by a person
fulfilling a contract
 Section 2 (v) “railway administration” has the meaning assigned to it in
clause (32) of section 2 of the Railways Act, 1989 (24 of 1989);
⮚ Applies to an employed person whose wages for that wage period do not
exceed 24[twenty four] thousand rupees per month.

► Section 3 Responsibility for payment of wages

(1) Every employer shall be responsible for the payment of all wages
required to be paid under this Act to persons employed by him and in
case of persons employed, (d) in the case of contractor, a person
designated by such contractor who is directly under his charge; and
(2) Notwithstanding anything contained in sub-section (1), it shall be the
responsibility of the employer to, make payment of all wages required to
be made under this Act in case the contractor or the person designated
 Provisions of The Payment of Wages Act, 1936
► Section 4 Fixation of wage-periods.— (1) Every person responsible for the
payment of wages shall fix periods (wage-period)
(2) No wage-period shall exceed one month.
► Section 5 Time of payment of wages.—
(1)(a) before the expiry of the 7th day after the last day of the wage-period
in any establishment in which less than one thousand persons are
employed,
(b) before the expiry of the 10th day after the last day of the wage-period
in other establishments :
 Liable Penalties due to Offences under The Payment of Wages
Act
SN Offence Penalty
1 (a) Delay in, or non-payment of, wages within the Fine upto Rs. 7500/- (minimum fine
prescribed time / (b) Making any unauthorised Rs. 1500/-)
deduction or imposition of fines in contravention of the
Act.
2 (a) Failure to fix the wage period or make payment of Fine upto Rs. 3750/-
wages on a working day / (b) Failure to maintain the
registers of fines and deductions or display the
prescribed notices.
3 Failure to nominate or designate a person under section Fine upto Rs. 3,000/-
3 of the Act
4 (a) Failure to maintain the prescribed returns and Fine upto Rs. 7500/- (minimum Fine
records, failure to furnish the required information or Rs. 1500/-)
furnishing of false information /(b) Obstructing the
Inspector or refusal to produce before him the
records/documents, for inspection
5 On repetition of the same offence Imprisonment upto 6 months and fine
upto Rs. 22,500/- (Minimum one
month and Rs. 3750/-, respectively)
6 Failure to pay the wages by the date fixed by the Additional fine of Rs. 750/- per day
authority. of default.
 Clause 55-A- Provisions Of Contract Labour
(Regulation And Abolition) Act, 1970
• 55-A.(1) The Contractor shall comply with the provision of the contract
labour (Regulation and Abolition) Act, 1970 and the Contract labour
(Regulation and Abolition) Central Rules 1971 as modified from time to
time, wherever applicable and shall also indemnify the Railway from and
against any claims under the aforesaid Act and the Rules.
• 55-A.(2) The Contractor shall obtain a valid license before the
commencement of the work and continue to have a valid license until the
completion of the work. Any failure to fulfill the requirement shall attract
the penal provision of the Contract arising out of the resultant non-
execution of the work.
• 55-A.(5) In every case in which, by virtue of the provisions of the aforesaid
Act or the rules, the Railway is obliged to pay any amount of wages to a
workman employed by the Contractor or his sub-contractor in execution
of the work or to incur any expenditure on account of the contingent,
liability of the Railway due to the Contractor's failure to fulfill his statutory
obligations under the aforesaid Act or the rules, the Railway will recover
from the Contractor, the amount of wages so paid or the amount of
35
expenditure so incurred
 Provisions of The Contract Labour (Regulation
⮚ Section 1(4)
and Abolition) Act
⮚ It applies
⮚ (a) 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;
(b) to every contractor who employees or who employed on any day of the preceding
twelve months twenty or more workmen:
⮚ Section 2(b) 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;
⮚ Section 2(c) “Contractor", who undertakes to produce a given result for the
establishment, other than a mere supply of goods, through contract labour or who
supplies contract labour for any work and includes a sub-contractor;
⮚ Section 2(g) “Principal employer” means - the head of that office or department or such
other officer as the Government or the local authority, as the case may be, may specify in
this behalf,
⮚ Railway Board letter no. E/LL/70AT/CNR/1-3 dated 15.10.1971-
Divisional officers in Divisions, Senior Mechanical Engineer, Deputy Chief Mechanical
Engineer or Works Manager in respect of Workshops, Controller of Stores in respect of
Stores depot, Executive Engineer in respect of Construction and Heads of Departments in
respect of contracts directly controlled by the Headquarters in respect of contracts as
Principal Employer
 Provisions of The Contract Labour (Regulation and
Abolition) Act
⮚ Section 21 Responsibility for payment of wages.-
(1) A contractor shall be responsible for payment of wages to each worker
employed by him as contract labour and such wages shall be paid before the
expiry of such period as may be prescribed.
(2) Every Principal employer shall nominate a representative duly
authorized by him to be present at the time of disbursement of wages by
the contractor and it shall be the duty of such representative to certify the
amounts paid as wages in such manner as may be prescribed.
(3) 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.
(4) In case the contractor fails to make payment of wages within the
prescribed period or makes short payment, then the principal employer
shall be liable to make payment of wages in full or the unpaid balance due,
as the case may be, to the contract labour employed by the contractor and
recover the amount so paid from the contractor either by deduction from
any amount payable to the contractor under any contract or as a debt
payable by the contractor.
 Provisions of The Contract Labour
(Regulation and Abolition) Act
⮚ Section 29 Registers and other records to be maintained.-
(1) Every principal employer and every contractor shall
maintain registers and records giving particulars of
contract labour employed, the nature of work performed
by the contract labour, the rates of wages paid to the
contract labour and other particulars in prescribed forms.
(2) Every principal employer and every contractor shall keep
exhibited within the premises of the establishment where
the contract labour is employed, notices about the hours
of work, nature of duty and other prescribed information.
 Provisions of The Contract Labour (Regulation and
Abolition) Central Rules

⮚ WAGES
⮚ Rule 63. The contractor shall fix wage periods in respect of which
wages shall be payable
⮚ Rule 64. No wage period shall exceed one month.
⮚ Rule 65. The wages of every person employed as contract labour in an
establishment or by a contractor where less than one thousand such
persons are employed shall be paid before the expiry of the seventh
day and in other cases before the expiry of tenth day after the last day
of the wage period in respect of which the wages are payable.
⮚ Rule 66. Where the employment of any worker is terminated by or on
behalf of the contractor the wages earned by him shall be paid before
the expiry of the second working day from the day on which his
employment is terminated.
 Provisions of The Contract Labour
(Regulation and Abolition) Central Rules
►WAGES
⮚ Rule 69. All wages shall be paid through Bank, where central
Government is appropriate Government.
⮚ Rule 71. A notice showing the wage period and the place and time of
disbursement of wages shall be displayed at the place of work and a
copy sent by the contractor to the principal employer under
acknowledgement.
⮚ Rule 72. The principal employer shall ensure the presence of his
authorised representative at the place and time of disbursement of
wages by the contractor to workmen.
⮚ Rule 73. The authorised representative of the principal employer shall
record under his signature a certificate at the end of the entries in the
Register of Wages or the [Register of Wages-cum-Muster Roll], in the
following form: “Certified that the amount shown in column No. ... has
been paid to the workman concerned in my presence on ..... at .....”
 Provisions of The Contract Labour (Regulation and
Abolition) Central Rules
⮚ RECORDS TO BE MAINTAINED
⮚ By PEs
Rule 74 Register of contractors—Form XII.
 By Contractors
Rule 75 Register of Workmen Establishment Wise ; FormXII (Form A)
Rule 76 Employment Card: To each worker within three days of the employment
of the worker in Form XIV .
Rule 77 Service Certificate: To the workman whose services have been terminated
in Form XV
Rule 78
(a).(i) Maintain a Muster Roll in From XVI (Form D);
(ii) Maintain a Register of Wages and Overtime in From XVII&XXIII (Form B)
(iii) maintain a Register of Deduction for Damage or Loss, Fine and Advances in
Form XX, XXI & XXII (Form C)
(b) Wage slip in Form XIX, a day prior to the disbursement of wages

Note- Formats to Maintain Registers under this rule has been revised through Ease of Compliance Laws Rules,
Form XII

43
44
Clause 55(B)-Provisions of Employees Provident Fund
and Miscellaneous Provisions Act, 1952

• The Contractor shall comply with the provisions of

• Para 30 & 36-B of the Employees Provident Fund
Scheme, 1952;
• Para 3 & 4 of Employees’ Pension Scheme, 1995; and
Para 7 & 8 of Employees Deposit Linked Insurance
Scheme, 1976; and shall also indemnify the Railway
from and against any claims under the aforesaid Act and
the Rules.

45
 Clause 55(C)- Shramikkalyan portal
• In order to ensure the compliance for the provisions of
Payment of Wages act & Minimum Wages act, an application
has been hosted ‘www.shramikkalyan.indianrailways.gov.in’.
• Contractor shall register his firm/company etc. and upload
requisite details of labour and their payment in this portal.
• These details shall be available in public domain.
• (ii) While processing payment of any ‘On Account bill’ or ‘Final
bill’ or release of ‘Advances’ or ‘PG/ SD’, contractor shall
submit a certificate that “I have uploaded the correct details
of contract labours engaged in connection with this contract
and payments made to them during the wage period in
Railway’s Shramikkalyan portal till ____Month, ____Year.”

46
 Clause 55(D)-Provisions of “The Building and Other Construction Workers
(Regulation of Employment and Conditions of Service) Act, 1996” and “The Building
and Other Construction Workers’ Welfare Cess Act, 1996”

• The tenderers, for carrying out any construction work, must

get themselves registered with the Registering Officer under
Section-7 of the Building and Other Construction Workers Act,
1996 and rules made thereto by the concerned State Govt.
and submit certificate of Registration, issued from the
Registering Officer of the concerned State Govt. (Labour
Dept.).
• As per this Act, the tenderer shall be levied a cess @1% of
cost of construction work, which would be deducted from
each bill. Cost of material, when supplied under a separate
schedule item, shall be outside the purview of cess.

47
 Prosecution process

www.shramikkalyan.indianrailways.gov.in
GCC_SERVICE

49
4.44 Digital Contract Labour Management System
(New)
• New Concept in Indian Railways
• For creating database and for attendance.
• For safeguarding worker’s welfare
• Mandatory in Labour intensive Service
Contracts.
• Overtime/Double shift can be logged
• Applicability of this clause to be made in
special condition.
• Create a Database – next slide
50
Contd....Digital Contract Labour Management System
• Bio data: Personal, Education, family, hometown,
police verification, Medical, Insurance, PF
registration
• Identification: Aadhar, Voter card, PAN, DL
• I Card: Photo, Blood group, Colour Band
• Biometric: Photo, fingerprint, iris
• Attendance: biometric machines
• Restricted Entry, Shift Logic, Time sheet generation,
Consumables, Safety/performance/Labour Law
training, Who’s where and Alerts(in Emergency)

51
Digital Labour Management System

The Computer calculates

how much
they (Labour)
will be paid
as per
when they entered
and exited
the workplace
52
 Data Protection(4.46)

• If Contractor is processing personal data, she

should comply all instructions and Laws
• Should protect data against unauthorized or
unlawful processing
• Protect against loss
• Provision shall apply during the period and
indefinitely.

53
Letter No.2018/E/LL/AT/CNR/3 Dated 24.01.2018
Sub: Compliance to statutory provisions of applicable Labour
Laws relating to “Contract Labour “ hired by Railways either
directly or through Contractors.
Labour_Laws_24012018 (1).pdf

.............In view of the fact that the Contract Labour

are engaged by various departments of Zonal
Railways, PU’s etc., it is incumbent on the Principal
Heads of the departments to put in place a robust
mechanism so that no violation of labour laws takes
place in their respective departments.

54
 Independent Contractor

• The contractor, its emplyees, agents etc shall

not be the employees of the state/ Railways
simply by virtue of work performed pursuant
to this contract

55
 Legal Obligations
(20 Acts)

• Contractor labour Act, 1970

• Minimum Wages Act , 1948
• Payment of Wages Act, 1936
• The Workman’s Compensation Act, 1923
• Employee Provident Fund Act, 1952
• Employees’ State Insurance Act, 1948
• Employees’ Pension Scheme, 1995
• Factories Act, 1948
• Manual Scavengers (Prohibition) Act, 1993
• Child Labour Act, 1986
Contd............

56
 Legal Obligations
(20 Acts)
Contd............
• Apprentices Act, 1961
• Equal Remuneration Act, 1976
• Safai Karamchari Act, 1993
• Industrial Disputes Act, 1947
• Maternity Benefit Act, 1961
• Trade Unions Act, 1926
• Payment of Bonus Act, 1965
• Payment of Gratuity, 1972
• Industrial Employment Act, 1946
• Sexual Harassment of Women at workplace Act, 2013

57
 Another disqualification

• (2.5.2.1)The bidder shall be disqualified

from participation in a bid if she has been
levied with a penalty for violation of
labour laws for 3 times in the last 2 years
by appropriate enforcing agency like
Labour Commissioner etc ).

58
 Added Provisions
IR may undertake measures to
ensure labour welfare like ( 6.1.3):

• Helpline for complaints from

labour
• Recording of anonymous
complaints

59
 6.3 Labour Law Awareness
• The Contractor has to mandatorily provide a
comprehensive day-long training by certified
third party for the awareness of all laws
applicable.
• To submit proof of Training
• Booklet (all updated labour legislations) to all
workers in local language

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 New Clauses added in Chapter VI
Clause Title
6.1 Independent Contractor
6.2 Legal Obligations
6.3 Labour Law Awareness
6.9 The Maternity Benefit Act, 1961
6.10 The Sexual Harassment of Women at the workplace
Act, 2013
6.11 Safai Kamachari Act, 1993
6.12 Child Labour Act, 1986
6.16 Police Verification of Labour
6.17 Mandatory compliances of Government Schemes)

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 Government Schemes- Mandatory

• 6.17.1 Pradhan Mantri Jan Dhan Yojna – provides for bank

account, credit facility, debit card

• 6.17.2 Pradhan Mantri Suraksha Bima Yojna– to pay

premium for accident cover

• 6.17.3 Pradhan Mantri Jeevan Jyoti Bima Yojna– to pay

premium for death due to any reason

• 6.17.4 Contractor to submit Documentary Evidence for the

above for having paid the premium for the contract period.

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THANKS

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