draft-151104contract labour bill

7/24/2019 Draft-151104Contract Labour Bill

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DRAFT BILL ON THE CONTRACT LABOUR (REGULATION AND

ABOLITION), 2015

An A ct to regulate the employm ent of contract labour in certain

establishments and to provide for its abolition in certain circumstances and

for matters connected labou r therewith.

CHAPTER I

PRELIMINARY

1. Short title extent commencement and application. -

(1) This Act

may be called the Contract Labour (Regu lation and Abo lition) Act, 2015

(2) It extends to the whole of India.

(3)

It shall come into force on such d ate as the Central Government may, by

notification in the O fficial Gazette, appoint.

(4) It applies--

(a)

To every establishment in which ten or more contract labour employed

or was employed on any day of the preceding twelve months through

contractor ;

(b)

To every m anpow er contractor who supply /provide contract labour to

any establishm ent.

2. Definitions.-

(1) In this Act, unless the co ntext otherwise requ ires,--

(a) Appropriate Governm ent means,-- (i) in relation to the manp ower supply

contractor having the functioning in mo re than one S tate, Central

Government, and

(ii) in relation to any other manp ower su pply contractor, Government of

State.

(b) Blacklisted Contractor- any contractor who has been blacklisted by

any Government Department.

(c)

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 w ith such work through a manpow er supply contractor.

(d)

Manp ower Supp ly Contractor , mean s a firm wh o supplies contract labour

for any work of the establishment.


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(e)

establishment means--

a. any office or departmen t of the Governm ent or a local authority, or

(ii) any place wh ere any industry, trade, business, manu facture or

occupation is carried on;

(f) prescribed means prescribed by rules made under this Act;

(g)

wages means all remuneration (whether by way of salary, allowances or

otherwise) expressed in terms of mo ney or capable of being so expressed

which would, if the terms of employment, express or implied, were fulfilled, be

payable to a person employed in respect of his employment or of work done

in such employment, and includes:

(a).

any remun eration payable unde r any award or settlement between the

parties or order of a court;

(b).

any remun eration to which the person employed is entitled in respect of

overtime work or holidays or any leave period;

(c).

any additional remuneration payable under the terms of employment

(whether called a bonus or by any other name);

(d).

any sum w hich by reason of the termination of employm ent of the person

employed is payable und er any law, contract or instrument w hich provides for

the payment of such sum , whether with or without deductions, but does not

provide for the time within which the paymen t is to be made;

(e).

any sum to which the person employed is entitled under any scheme

framed und er any law for the time being in force;

(f).

house rent allowance;

but does not include

(1).

any bonus payable under this Code, which does not form part of the

remuneration payable under the terms of employm ent or which is not payable

under any aw ard or settlement between the parties or order of a Court;

(2).

the value of any house-accommodation, or of the supply of light, water,

medical attendance or other amenity or of any service excluded from the

computation of wages by a general or special order of the State Government;

(3).

any contribution paid by the employer to any pension or provident fund,

and the interest which may have accrued thereon;

(4).

any travelling allowance or the value o f any travelling con cession;

(5).

any sum paid to the employed person to defray special expenses entailed

on

2 the nature of his employment; or


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(6). any gratuity payable on the termination of employm ent in cases other than

those sp ecified in sub-clause (d).

(h) "worker" means any person (except an apprentice) employed to do any

manual, unskilled, skilled, technical, operational, clerical work for hire or

reward, whether the terms of em ployment be express or implied, but does not

include who is employed mainly in a supervisory or managerial or

adm inistrative capacity.

CHAPTER II

THE ADVISORY BOARDS

3. Central Advisory Board.-

(1) The Central Government shall, as soon as

may b e, constitute a board to be called the Central Advisory Contract Labour

Board (hereinafter referred to as the Central Board) to advise the Central

Government on such matters arising out of the administration of this Act as

may be referred to it and to carry out other functions assigned to it under this

Act.

(2) The Central Advisory Board shall consist of--

a.

Union Labour Minister (in charge), Chairman, ex-officio;

b.

Secretary(Labour), Vice-Chairman, ex-officio

c.

Joint Secretary/DGLW, Member Secretary

d.

Chief Labour C om missioner (Central), Mem ber, ex-officio

e.

such number of members, not exceeding eleven but not less than three,

as the Central Government may nominate to represent the Government, the

contractors, the workers and any other interests which, the opinion of the

Central Government, ough t to be represented on the Central Advisory Board.

(3) The number of persons to be appointed as members from each of the

categories specified in sub-section (2), the term of office and the manner of

filling vacancies of the Central Advisory Board shall be such as may be

prescribed:

Provided that the number of members nominated to represent the workers

shall not be less than the number of members nominated to represent the

contracts.


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4. State Advisory Board.- (1) The State Government may constitute a

board to be called the State Advisory Contract Labour Board (hereinafter

referred to as the State Board) to advice the State Government on such

matters arising out of the administration of this Act as may_ be referred to it and

to carry out other functions assign ed to it under this Act

2. The State Advisory Board shall consist of--

a.

Labour Minister (in charge), Chairman, ex-otticio

b.

Secretary (in charge Labour), Vice-Chairman, ex-officio

c.

Joint Secretary, Department of Labour, Mem ber Secretary, ex-officio

d.

the Labour Com missioner, ex-officio

e.

such num ber of mem bers, not exceeding eleven but not less than three,

as the State Government m ay nominate to represent the Governm ent, the

contractors, the workers an d any other interests wh ich, the opinion of the

State Government, ought to be represented on the S tate Advisory Board

(3) The number of persons to be appointed as members from each of the

categories spec ified in sub-sec tion (2), the term of office and the m anner of

fil ling vacancies amo ng, the mem bers of the State Advisory Board shall be

such as may be prescribed:

Provided that the num ber of memb ers nominated to represent the workers

shall not be less than the number of mem bers nom inated to represent the

contractors.

5. Power to con stitute com mittees. - (1) The Central Advisory Board o r the

State Advisory Board, as the case may be, may cons titute such comm ittees

and for such purpose or purpos es as it may think fit.

(2)

The com mittee constituted under sub-section (1) shall meet at such times

and places and shall observe such rules of procedure in regard to the

transaction of business at its meetings as m ay be prescribed.

(3)

The m embers of a com mittee shall be paid such allowances for attending

its meetings as may b e prescribed:

Provided that no allowance shall, be payable to a m ember who is an officer of

Government or o f any corporation established by an y law for the time being in

force.


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CHAPTER III

LICENSING OF CONTRACTORS

6. Appointment of Licensing officers.-- The Appropriate Government

may , by an order notified in the Official Gazette,-- appoint suc h perso ns,

being G azetted officers of Go vernm ent, as it thinks fit to be licensing officers

for the purposes of this Chapter;

7. Licencing of contractors.- (1) No contractor, shall supply or engage

contract labour in any establishment except under and in accordance with a

licence issued in that behalf.

8. Eligibility for Licence

(1)

Applicant must be a (Private Limited Company or Public Limited

Com pany/ Limited Liability Partnership) and incorporated o r registered in India

under the Indian Companies Act 2013

(2)

Applicant must have m inimum 100 workers on its pay roll.

(3)

Applicant must not have been blacklisted by Central, or any State/ UT

Government under any law

(4)

Applicant must be registered under Employee's Provident Fund and

Miscellaneous Provisions Act 1952 and each of his worker must be member

of the same.

(5)

Applicant must be registered with ESIC Act, 1948, if applicable and each

of his worker is the memb er of the same.

(6)

Applicant must be having registration under Income Tax A ct and Income

Tax Payee.

(7) The applicant must be having registration under Service tax Act or other

similar law.

(8) The net w orth of the applicant must not be less than 5 crore.

(9)

The ap plicant mu st be hav ing Labour Identification N umb er (LIN).

9. Application for Licence.- (1) Every application for the grant of a licence

shall be made in the prescribed form.

(2) The licensing officer may make such investigation in respect of the

application received under sub-section (1) and in making any such

investigation the licensing officer shall follow such procedure as may be

prescribed.


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10. Grant of Licence:- If the applicant satisfies the requireme nt of section 8

and section 9, the licencing officer shall grant the licence within 30 days of

receipt of the application.

11. No fees/ Com mission or any cost to workers:- The c ontractor shall not

charge directly or indirectly, in whole or in part, any fees/ commission or costs

to the workers.

12. Revocation, suspension and amendment of Licence.- (1) If the

licensing officer is satisfied, either on a reference made to him in this behalf

or otherw ise, that--

a)

a licence issued u nder section 10 has been obtained by m isrepresentation

or suppression of any material fact, or

b)

That the contractor has v iolated the provision of this Act or the rules made

there under or an y of the co nditions of the licence.

c)

the holder of a licence ha s, without reasonab le cause, failed to com ply

with the conditions subject to which the registration has be en granted or has

contravened any of the provisions o f this Act or the rules made there under,

or any other applicable labour law(s) then, without prejudice to any other

penalty to which the contract may be liable under this Act, the licensing officer

may, after giving the contractor an opportunity of show ing cause, revoke or

suspend the license.

(2) Subject to any rules that may be mad e in this behalf, the licensing officer

may vary or am end a registration granted unde r section 10.

13. Appeal.-

(1) Any person aggrieved by an order made under section 10 or

section 12 may, within thirty days from the date on which the order is

comm unicated to him, prefer an appeal to an appellate authority who shall be

a person notified in this behalf by the appropriate Governmen t:

Provided that the ap pellate officer ma y entertain the appeal after the expiry of

the said period o f thirty days, if he is satisfied that the appellant was p revented

by sufficient cause from filing the appeal in time.

(2) On receipt of an ap peal under s ub-section (1), the appellate officer shall,

after giving the appe llant an opportunity of being heard dispose of the app eal

within 30 days.

14.

If the establishment has not taken contract labour from the licensed

contractor, then the co ntract labour sh all deem ed to be directly employed

worker of the establishmen t.


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CHAPTER IV

SOCIAL SECURITY OF CONTRACT LABOUR

15. It shall be the duty of the establishment to pay the dues to the contract

labour and d eposit the dues towards the contract labour to various statutory

bodies on behalf of contractor and to comply with the following legislations

wherever applicable;

1. The Employee's Compensation Act, 1923,

2. The Employee's State Insurance Act, 1948,

3.

The Em ployee's Provident Funds and Miscellaneous Provisions A ct, 1952,

4. The Maternity Benefit Act, 1961,

5. The Payment of Gratuity Act, 1972

6. The payment of Wages Act, 1936

7.

The Equal Remuneration Act, 1976

8.

The Minimum Wages Act, 1948

9.

The Payment of Bonus Act, 1965

CHAPTER V

OTHER BENEFITS

16. Annual Increment:- Contract Labour shall be entitled for the annual

incremen t which shall not be less than three per cent of wages.

17. Priority in Regular Employment:- The contract labour who has worked

not less than three years in an establishm ent shall be given preference by the

establishmen t while recruiting regular workers.


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18.

Skill Certification:- The es tablishment shall issue a skill certificate to the

contract labour at the time of termination/leaving the employment obtained

from the institutions recognised for this purpose.

19.

Experience Certificate:- Contractor shall issue experience certification

to the contract labour annu ally giving details of the work perform ed by the

contract labour in the prescribed tormat

CHAPTER VI

PROHIBITION

20.

Prohibition of employment of contract labour.- (1) Notwithstanding

anything contained in this Act, the appropriate Government may, after

consultation w ith the Central Board or, as the case m ay be, a S tate Board,

prohibit, by notification in the Official Gazette, employm ent of co ntract labour

in any process, operation or other w ork in any es tablishment.

(2) Before issuing any notification under sub-section (1) in relation to an

establishment, the appropriate Government shall have regard to the

conditions of work and benefits provided for the contract labour in that

establishment and o ther relevant factors, such as-

(a) whether process, operation or other work is incidental to, or necessary for

the industry, trade, business, manu facture 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 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.

Explanation.--

If a question arises whether any process or op eration or o ther


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work is of perennial nature, the decision of the appropriate Government

thereon shall be final.

21.

If any establishment has engaged contract labour in violation of section

20 of this Act, such contract labour shall be deemed to be directly employed

worker of the establishment.

CHAPTER-VI

RECORDS, RETURNS AND NOTICES

22.

Records, Returns and Notices:

1). Every

mployer

f n

establishment to which this Act applies, shall maintain records containing the

details with regard to persons employed, muster roll, wages, and other details

as prescribed by the appropriate Government on their website and in case the

contractor is not having the website than on the website of establishment is

which the contract labour are engaged.

2) Every employer shall display on the notice board at a prominent place of

the establishment containing the abstract of the Act, category-wise wage rates

of employees, wage period, day or date and time of payment of wages, and

the name and address of the Facilitator having jurisdiction.

3). Every employer shall issue wage slips to the employees as may be

prescribed.

4). Every employer of an establishment shall send an annual return in the

prescribed form and as far as possible electronically to the authority as may

be prescribed.

CHAPTER-VI

FACILITATORS

23. Appointment of Facilitators and their powers:

1). The appropriate

Government may, by notification, appoint Facilitators who shall exercise the

powers conferred on them under sub-section 4) throughout the State or such

geographical limits assigned to them, in relation to establishments situated in

such State or geographical limits, as the case may be.


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(2). The appropriate Government m ay, by notification, lay down an inspection

scheme which shall provide for generation of a web-based inspection

schedule.

(3). Every Facilitator appointed under sub-section (1) shall be deemed to be

public servant within the m eaning of section 21 of the Indian Penal Code 1860

(45 Of 1860).

(4). Subject to any rules m ade in this behalf by the a ppropriate Governm ent,

a facilitator may, within the local limits for which he is appo inted

(i).

(a). supply information and advice to employers and workers

concerning the m ost effective mean s of comp lying with the provisions of this

Act.

(b). inspect the establishment based on inspection scheme referred to in sub-

section (2);

(ii).

Subject to clause (i), the Facilitator may

(a).

examine any person who is found in any premises of the establishment

and wh om, the Facilitator has reasonable cause to believe, is a w orker of the

establishment;

(b).

require any person to give any information, which is in his power to give

with respect to the names and address es of the persons;

(c).

search, seize or take copies of such register, record of wages or notices

or portions thereof as the Facilitator may consider relevant in respect of an

offence under this Act and which the Facilitator has reason to believe has been

committed by the employer;

(d).

bring to the notice of the appropriate Government d efects or abuses no t

covered by the law for the time being in force; and

(e).

exercise such other powers as may be prescribed.

(5). Any perso n required to produce any docum ent or to give any information

required by a Facilitator under su b-section (4) shall be deeme d to be legally

bound to do so within the meaning of section 175 and section 176 of the Indian

Penal Code (45 of 1860).

CHAPTER VIII

PENALTIES AND PROCEDURE


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24.

Contravention of provisions regarding employment of contract

labour.- Who ever contravenes any provision of this Act or of any rules made

thereunder prohibiting, restricting or regulating the employment of contract

labour, or contravenes any condition of a license granted under this Act, shall

be punishable with imprisonment for a term wh ich may extend to one mon th,

or with fine which m ay extend to fifty thousand rup ees, or with both, and in the

case of a continuing contravention with an additional fine which m ay extend to

one thousand rupee s for every day during which such contravention continues

after conviction for the first such co ntravention.

25.

Cognizance of offences.- No court shall take cognizance of any offence

under this Act except on a complaint made by, or with the previous sanction

in writing of, the facilitator and n o co urt inferior to that a judicial magistrate of

the first class sha ll try any offence p unishable un der this Act.

26.

Limitation of prosecutions.- No court shall take cognizance of an offence

punishable under this Act unless the com plaint thereof is made w ithin one year

from the date on which the alleged commission of the offence came to the

knowledge of facilitator:

27.Compounding of offences:

1).

otwithstanding nything

contained in the Act of Criminal Procedure, 1973 (2 of 1974), on the

application of the employer concerned, any offence under this Act shall be

compounded, by such officer being a gazetted officer of the appropriate

Government, in such manner and on payment of such amount to such

government as may be prescribed and if the employer does not agree to pay

such amount for composition of the offence, then, the proceedings shall be

initiated against such em ployer in accordance with law.

(2).

The offence referred to in sub-section (1) may be compounded before or

pending the trial of the offence and when the offence is compounded during

the trial of the offence, the officer com pound ing the offence under sub -section

(1) shall file a report in the co urt in which the trial of the offence is pending an d

the court shall, on filing of such report, discharge the accused w ith whom the

offence has been compo unded and such com position shall have the effect of

an acqu ittal of the accused.

(3).

Notwithstanding anything contained in this section, where

(i). the second or subsequent offence of similar nature is committed within

five years from the d ate of the comm ission of the first such na ture of offence,


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then, only the first such offence may be com pound ed and such seco nd or

subsequent offence shall not be compounde d; and

(ii). the accused has previously been con victed by a Court for comm itting the

offence of similar nature, no further offence of same nature shall be

compounded , under this section.

(4). No offence under this Act shall be compounded, except as provided under

this section.

CHAPTER-IX

MISCELLANEOUS

28.

Power to exempt in special cases.-

The appropriate Government may,

in the case of an emergency, direct, by notification in the Official Gazette, that

subject to such conditions and restrictions, if any, and for such period or

periods, as m ay be s pecified in the notification, all or any of the provisions of

this Act or the rules made thereunder sha ll not apply to any establishm ent or

class of establishments or any class of contractors.

29.

Protection of action taken under this Act.-(1) No suit, prosecution or

other legal proceedings shall lie against any registering offices, licensing

officer or any other governm ent servant or against any m ember of the C entral

Advisory Board or the State Advisory Board, as the case may be, for anything

which is in good faith done or intended to be done in pursuan ce of this Act or

any rule or order made thereunder.

(2) No suit or other legal proceeding shall lie against the Governm ent for any

damage caused or likely to be caused by anything w hich is in good faith done

or intended to be done in pursuance of this Act or any rule or order made

thereunder.

30.Power to give directions.-

The Central Government m ay give directions

to the Governm ent of any State as to the carrying into execution in the State

of the provisions contained in this Act.

31.Power to remove difficulties.-

If any difficulty arises in giving effect to the

provisions of this Act, the Central Government m ay, by order published in the

Official Gazette, make su ch provisions not incons istent with the provisions of

this Act, as appears to it to be necessary or expedient for removing the

difficulty.


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32. Effect of laws and agreements inconsistent with this Act.-

(1) The

provisions o f this Act shall have effect notwithstand ing anything incons istent

therewith contained in any other law or in the terms of any agreement or

contract of service, or in any standing orders applicable to the establishment

whether made before or after the com mencem ent of this Act:

Provided that where under any such agreement, contract of service or

standing orders the contract labour em ployed in the establishm ent are entitled

to benefits in respect of any matter which are more favourable to them than

those to w hich they wo uld be entitled under this Act, the contract labour shall

continue to be entitled to the more favourable benefits in respect of that matter,

notwithstanding that they receive benefits in respect of other matters under

this Act.

(2) Nothing contained in this Act shall be construed as precluding any such

contract labour from entering into an agreem ent with the establishmen t or the

contractor, as the case m ay be, for granting them rights or privileges in respect

of any matter, which are more favourable to them than those to which they

would be entitled under this A ct.

33. Power to make rules.- (1) The appropriate Government may, subject to

the condition of previous publication, mak e rules for carrying out the purposes

of this Act.

2) In particular, and withou t prejudice to the generality of the foregoing

power, such rules m ay provide for all or any of the following m atters,

namely:--

(a)

the number of persons to be appointed as mem bers representing various

interests on the Cen tral Board and the State B oard, the term o f their office, the

procedure to be followed in the discharge of their functions and the manner of

filling vacan cies;

(b)

the times and places of the m eetings of any comm ittee constituted under

(c)

the form of application for the grant a license and the particulars it may

contain;

(d)

the manner in which an investigation is to be made in respect of an

application for the grant of a license an d the ma tters to be taken into account

in granting or refusing a registration;

(e) the form and mann er in which appeals m ay be filed and the procedure to


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be followed by appellate officers in disposing of the appeals;

(3) Every rule made by the Central Government under this Act shall be laid

as soon as may b e after it is made , before each House of P arliament while it

is in session for a total period of thirty days wh ich may be com prised in one

session or in two successive sessions, and if before the expiry of the session

in which it is so laid or the session imm ediately following, both Houses agree

in making any modification in the rule or both Houses agree that the rule

should not be made, the rule shall thereafter have effect only in such m odified

form or be of no effect, as the case may be; so, however, that any such

modification or annulment shall be without prejudice to

the validity of anything

previously done under that rule.

34. Repeal and savings -

1). Contract Labour (Regulation &

Abolition) Act, 1970 is hereby repealed.

(2).

Notwithstanding such repeal, anything do ne or any action taken un der the

enactment so repealed (including any notification, nomination, appointment,

order or direction made thereunder) shall be deem ed to have been don e or

taken under the corresponding provisions of this Act and shall be in force to

the extent they are not contrary to the provisions of this Act till they are

repealed under the corresponding provisions of this Act.

(3).

Without prejudice to the prov isions of sub-section (2), the provisions of

section 6 of the General Clause A ct, 1897 (10 of 1897) shall apply to the repeal

of such enactments.

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draft-151104contract labour bill

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