CONTRACT LABOUR(REGULARATION & ABOLITION) ACT,1970

 Contract labour has its root from time immemorial

 Contract workmen are hired, supervised and remunerated by
the contractor who, in turn, remunerated by the establishment
hiring the services of the Contractor.
 Contract labourers were considered exploited section of the
working class mainly due to lack of organisation on their part.
The primary objective of the Act is to stop exploitation of
contract labourers by contractors and establishments.
The Act does 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.
The Act does not regard persons as contractors who only supply

goods or articles of manufacture to an establishment [Sections

1, 2 (c)].
OBJECT AND APPLICABLITY
 Object of the 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.
 Applicability

• Every establishment in which 20 or more

workmen are employed or were employed on any
day of the preceding 12 months as contract
labour. • Every contractor who employs or who
employed on any day of the preceding twelve
months 20 or more workmen.
 SECTION 1 : SHORT TITLE, EXTENT,
COMMENCEMENT AND APPLICATION
This Act may be called the Contract Labour Act,1970.
It extends to the whole of India

It applies:-
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 employees or who employed on any day of the

preceding twelve months twenty or more workmen

Act does not apply to:-

 
Intermittent nature

 
Work not perform for more than 120 days

 
Seasonal nature

 
 DEFINITIONS (SECTION 2)

 Appropriate Government” means:

(i) in relation to an establishment in respect of which
the Appropriate Government under the Industrial
Disputes Act, 1947 (14 of 1947), is the Central
Government;
(ii) in relation to any other establishment, the
Government of the State in which that other
establishment is situated.
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.
 DEFINITIONS

 “Contractor”, in relation to an establishment, means a

person who undertakes to produce a given result for the
establishment, other than a mere supply of goods of
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
 “Controlled industry” means any industry the control of
which by the Union has been declared by any Central
Act to be expedient in the public interest.
 “Establishment” means: (i) any office or department of
the Government or a local authority, or (ii) any place
where any industry, trade, business, manufacture or
occupation is carried on.
DEFINITIONS

“Prescribed” means prescribed by rules made under this Act.

“Principal Employer” means:
(i) in relation to any office or department of the Government
or a local authority, 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
(ii) in a factory, the owner or occupier of the factory and
where a person has been named as the manager of the
factory under the Factories Act, 1948 (63 of 1948) the person
so named
(iii) in a mine, the owner or agent of the mine and where a
person has been named as the manager of the mine, the
person so named; and
(iv) in any other establishment, any person responsible for
the supervision and control of the establishment.
 Wages” shall have the meaning assigned to it in Clause (vi) of
Section 2 of the Payment of Wages Act, 1936 (4 of 1936);
 (i) “workman” means any person employed in or in connection
with the work of any establishment to do any skilled, semiskilled
or unskilled manual, supervisory, or clerical work for hire or
reward, whether the terms of employment be express or
implied, but does not include any such person:
 who is employed mainly in a managerial or administrative
capacity
 who, being employed in a supervisory capacity draws wages
exceeding five hundred rupees
 who is an out-worker, that is to say, a person to whom any
articles or materials are given out by or on behalf of the
principal employer to be made up, cleaned, washed, altered,
ornamented, finished, repaired, adapted
 CENTRAL ADVISORY BOARD (SECTION 3)

 The Central Government may constitute a board to be called

Central Advisory Contract Labour Board. It is the duty of the
Central Advisory Contract Labour Board to advise the Central
Government on such matter arising out of the administration
under this Act.
 Composition of the Central Advisory Board

 The Central Board shall consists of:

A Chairman to be appointed by the Central
Government;
 The Chief Labour Commissioner (Central), ex officio;
and
 such number of members not exceeding 17 but not less
than 11.
STATE ADVISORY BOARD
 The State Government may constitute a State Advisory
Contract Labour Board in order to advise the State
Government. The State Advisory Board shall advise the
State Governments on such matters arising out of the
administration of this Act. It shall also carry out such
other functions assigned to it.
The State Advisory Board shall consist of:
 A Chairman to be appointed by the Central Government.
 The Labour Commissioner, ex officio or in his absence
any other officer nominated by the State Government in
this behalf.
 Such other members not exceeding 11 but not less than
9.
POWER TO CONSTITUTE COMMITTEES (SECTION 5)

 The Central Board or the State Board may

constitute such committees as it thinks fit.
The committee constituted shall meet at
regular intervals.
 It shall follow the rules and procedures with
regard to the transactions of business and its
meetings. The members of the committee are
eligible for fees and allowances for attending
its meetings.
 However, Government/Corporation officials
are not entitled to claim fees for attending the
meeting.
APPOINTMENT OF REGISTERING OFFICERS (SECTION 6)

 The appropriate Government may by

notification in the Official Gazette:
 appoint such persons being Gazetted Officers
of Government to be registering officers; and
 define the limits, within which a registering
officer shall exercise the powers conferred
on him.
REGISTRATION OF ESTABLISHMENTS (SECTION 7)
 Every employer of an establishment shall make an
application to the Registering Officer in the prescribed
manner for registration.
 The appropriate Government may specify the time limit

within which the establishments shall make an application.

 If the Registering Officer is satisfied that the applicant was

prevented by sufficient cause from making the

application in time, the Registering Officer may entertain
the application for registration after the expiry of the time
fixed in this behalf.
 If the Registering Officer is satisfied that the application

for registration is complete in all respects, he shall

register the establishment. The Registering Officer shall
issue a certificate of registration to the principal employer
of the establishment.
SECTION 8: REVOCATION OF REGISTRATION IN CERTAIN
CASES
 The Registering Officer shall revoke the registration, if
he is satisfied that the registration of any
establishment has been obtained by:
 Misrepresentation.

 Suppression of any material fact.

 Any other reason the registration has become

useless or ineffective.
 Before revoking the registration, the registering
officer shall give the principal employer of the
establishment an opportunity of being heard.
 The registering officer shall revoke the registration
only with the previous approval of the appropriate
Government.
SECTION 9: EFFECT OF NON-REGISTRATION

 In case an establishment required to be

registered under Section 7 is not been
registered within the time fixed for the
purpose under that section;
  
 In the case of an establishment the
registration in respect of which has been
revoked under section 8.
 SECTION 10: PROHIBITION OF EMPLOYMENT OF CONTRACT
LABOUR
 The appropriate Government may, after consultation with the
Central Board or, as the case may be, a State Board, prohibit, by
notification in the Official Gazette, employment of contract labour
in any process, operation or other work in any establishment.
 The appropriate Government shall have regard to the conditions
of work and benefits provided for the contract labour in that
establishment and other relevant factors, such as :
 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
 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 
 Whether it is done ordinarily through regular workmen in that
establishment or an establishment similar there off
 Whether it is sufficient to employ considerable number of whole-
time workmen
LICENSING OF CONTRACTORS
SECTION 11: APPOINTMENT OF LICENSING OFFICERS

 Appoint such persons define the limits,

within which a licensing officer shall exercise
the powers conferred on licensing officers by
or under this Act
SECTION 12: LICENSING OF CONTRACTORS

 A contractor shall not undertake or

execute any work through contract labour
unless a licence has been obtained from
the licensing officer. The license may
contain such particulars such as:
 Conditions as to hours of work.
 Fixation of wages.
 Other essential amenities to be provided in respect of
contract labour.
GRANT OF LICENCES (SECTION 13)

 Every application for the grant of licence shall be made in

the prescribed form. It shall contain the following
particulars:
 Location of the establishment.
 Nature of process, operations.
 Work for which the contract labour is to be employed.
 Such other particulars as may be prescribed.
 The licensing officer has the right to make an investigation
in respect of the application received. The licensing officer
shall follow the procedure as laid down under this Act.
 The licence granted by the officer shall be valid only for
the period specified therein.
 The licence shall be renewed from time to time on
payment of the prescribed fees.
REVOCATION, SUSPENSION AND AMENDMENT OF LICENCE (SECTION
14)

 If the licensing officer is satisfied, either

on a reference made to him in this behalf
or otherwise, that-
 Obtained by misrepresentation or
suppression of any material fact
 Failed to comply with the conditions
 subject to which the licence has been
granted
WELFARE AND HEALTH
SECTION 16: CANTEEN

 Appropriate Government may make rules

 to which this Act applies,
 Wherein work requiring employment of
contract labour is likely to continue for such
period as may be prescribed, and
 wherein contract labour numbering one
hundred or more is ordinarily employed by a
contractor, one or more canteens shall be
provided and maintained by the contractor
for the use of such contract labour.
 Without prejudice to the generality of the
foregoing power, such rules may provide
for:- 
 The date by which the canteens shall be
provided 
 The number of canteens that shall be
provided, and the standards in respect of
construction, accommodation, furniture and
other equipment of the canteens
 The foodstuffs which may be served therein
and the charges which may be made thereof.
RESTROOMS (SECTION 17)

 A contractor shall provide restrooms or other

suitable accommodation for the use of the
contract labour.
 A contract labour can halt at night in
connection with the work of an
establishment.
 The restrooms provided by the contractor
shall be sufficiently lighted and ventilated.
The rooms shall be cleanly maintained and
should be in a comfortable condition.
OTHER FACILITIES (SECTION 18)

 Every contractor employing contract

labour shall provide and maintain the
following:
 sufficient supply of drinking water at convenient
places;
 sufficient number of latrines and urinals; and
 washing facilities.
FIRST AID (SECTION 19)

 Every contractor shall provide and maintain a

first-aid box.
 The first-aid box shall be readily accessible
during all working hours.
 The first-aid box should be equipped with
the prescribed contents at every place where
contract labour is employed
LIABILITY OF PRINCIPAL EMPLOYER (SECTION 20)

 It shall be the duty of the contractor to

provide the amenities to the contract labour.
 If a contractor fails to do so, such amenities
shall be provided by the principal employer.
 All expenses incurred by the principal
employer for providing the amenities shall be
recovered from the contractor or by
deducting the amount payable to the
contractor under any contract or as a debt by
the contractor.
RESPONSIBILITY FOR PAYMENT OF WAGES (SECTION 21)

 A contractor shall be responsible for payment of

wages to each worker employed by him.
 Wages shall be paid before the expiry of such period
as may be prescribed.
 Every principal employer shall nominate a
representative to be present at the time of
disbursement of wages by the contractor. It shall be
the duty of such representative to certify the
amounts paid as wages in such manner as may be
prescribed.
 A contractor has to ensure that the disbursement of
wages shall be made in the presence of the
authorized representative of the principal employer.
INSPECTORS (SECTION 28)
 The appropriate Government may by notification in the Official
Gazette appoint such persons to be the inspectors to carry out
their duties. It may also define the local limits within which the
inspectors shall exercise their powers.
 Powers of Inspectors
 The inspector shall exercise the following powers:
 Enter the premises or place where contract labour is employed at
all reasonable hours with such assistance.
 Examine the registers, records or notices required to be kept

under this Act.

 Examine any person whom he finds in any such premises or place.

 Require any person giving out work and any workman to give any

information.
 Seize or take copies of registers, records of wages or notices as he

considered relevant.
 Exercise such other powers as may be prescribed.

 Take measurements and photographs of such recordings.