The Contract Labour (regulation And Abolition) Act, 1970

By:Arunima SharmaArpita GhoshBushra Zaheer KhanMd. Arif

AGENDA Object Applicability History Terminology Registration & Licensing Important sections Latest amendments Linkage with other acts Case studies Conclusion (Pros & cons)

INTRODUCTION

Objective: 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.

Applicability :

20 or more workmen employed on any day

in the preceding 12months

Employer Contractor

HISTORY

1956- Service conditions of labourers, a topic of concern

1960- Vaccum Refining Co. case1961- Indian labour conference1962-Recommendation to the bill1967- Bill moved to lok Sabha1968- Reference to Joint committee1970- Bill passed1971- Enforcement of Act

Terminology

Establishment Contractor Employer Intermittent Revocation Appropriate

government

This is taken by the Principal Employer.

This is taken by Contractor

Registration License

This is not renewable on year to year basis

This is valid for only one year / should renewed before due date.

Certificate of Reg.. Need not be displayed at the establishment by P.E.

License shall be displayed prominently at the premises where the contract work is being carried on.

Registration (Sec 7) & Licensing (Sec 12)

Registration License

Registration (Sec 7) & Licensing (Sec 12)

Issued on Payment of fees. Issued on Payment of Fee & Security money

For only Bank Draft Required.

Bank Draft + Certt. Of P.E. Is required (Form V)

No Conditions are attached as a part certt.

There is full Annx. Containing conditions for fulfillment by contractor.

Liabilities of the Principal Employer(Sec. 20)

To pay wages incase the contractor fails to do so

To nominate a representative to be present at the time of disbursement of wages by the contractor

To provide welfare and health facilities

Right to recover the expenses involved from the Contractor through bills payable.

Maintain a register and records in form XII giving particulars like

▪ No of Contractors and contract labour employed.▪ Nature of work.▪ Rate of wages.

Display Notice at a conspicuous place in English and Local Language containing information like

▪ Rate of wages.▪ Hour of work.▪ Wage period.▪ Date of payment of wages.▪ Name and address of the Inspectors.

Submission of yearly return to Licensing Officer in Form XXV.

Liabilities of the Contractor Maintain a register in form XIII containing

information like▪ Muster Roll▪ Wages▪ Deductions.▪ Over time▪ Fines▪ Advance ▪ Wage slips

Issue an employment card in form XIV to each worker and to issue a service certificate on termination of employment in form XV

Submission of half yearly return to Licensing Officer in Form XXIV.

Important Sections

(Sec. 10) Prohibition of employment of contract labour.

(Sec. 9) Effect of non-registration. (Sec. 14) Revocation, suspension and

amendment of licences. (Sec. 16) Canteens. (Sec. 17) Rest-rooms. (Sec. 30) Effect of laws and agreements

inconsistent with this Act. Sec 20 (Sec. 21) Responsibility for payment of wages. (Sec. 22) Obstructions. (Sec. 23) Contravention of provisions regarding

employment of contract labour.

Latest Amendments!!

The Contract Labour (Regulation and Abolition) (Amendment) Act, 1986.

The Delegated Legislation Provisions (Amendment) Act, 2004.

Acts applicable to Contract Labour ( Linkage with other acts)

1. Factories Act 1948.2. Employee’s Provident Funds &

Miscellaneous Provision Act 1952.3. The Employees State Insurance

Act 1948.4. The Payment of Wages Act 1936.5. The Minimum Wages Act 1948.6. The Industrial Disputes Act 1947.7. The Workman’s Compensation Act

1923.

Case Studies

R.K. Panda v. Steel Authority of India Air India Statutory Corp. v. United

Labour Union. Steel Authority of India Ltd. v.

National Union Water Front Workers

Conclusion!!!

Pros Cons

Questions??

“Thank you”