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    Contract Labour (Regulation& Abolition) Act

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    Akshita Chamaria Lundia
    The Contract Labour (Regulation & Abolition) Act 1970 regulates the use of contract labour in certain establishments and provides for its abolition in certain circumstances. Key aspects include: 1) It applies to establishments employing 20 or more contract workers and contractors employing the same. 2) It defines contract labour and principal employers and provides for registration, licensing of contractors, and facilities like canteens, rest rooms, drinking water etc. to be provided. 3) Principal employers may be responsible for ensuring facilities if contractors do not provide them, and for timely payment of wages. Equal pay is to be provided for equal work.

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    Contract Labour (Regulation& Abolition) Act

    Uploaded by

    Akshita Chamaria Lundia
    61 views7 pages
    The Contract Labour (Regulation & Abolition) Act 1970 regulates the use of contract labour in certain establishments and provides for its abolition in certain circumstances. Key aspects include: 1) It applies to establishments employing 20 or more contract workers and contractors employing the same. 2) It defines contract labour and principal employers and provides for registration, licensing of contractors, and facilities like canteens, rest rooms, drinking water etc. to be provided. 3) Principal employers may be responsible for ensuring facilities if contractors do not provide them, and for timely payment of wages. Equal pay is to be provided for equal work.

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    Contract Labour(Regulation& Abolition)Act

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    The Contract Labour (Regulation & Abolition) Act 1970 regulates the use of contract labour in certain establishments and provides for its abolition in certain circumstances. Key aspects include: 1) It applies to establishments employing 20 or more contract workers and contractors employing the same. 2) It defines contract labour and principal employers and provides for registration, licensing of contractors, and facilities like canteens, rest rooms, drinking water etc. to be provided. 3) Principal employers may be responsible for ensuring facilities if contractors do not provide them, and for timely payment of wages. Equal pay is to be provided for equal work.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    61 views7 pages

    Contract Labour (Regulation& Abolition) Act

    Uploaded by

    Akshita Chamaria Lundia
    The Contract Labour (Regulation & Abolition) Act 1970 regulates the use of contract labour in certain establishments and provides for its abolition in certain circumstances. Key aspects include: 1) It applies to establishments employing 20 or more contract workers and contractors employing the same. 2) It defines contract labour and principal employers and provides for registration, licensing of contractors, and facilities like canteens, rest rooms, drinking water etc. to be provided. 3) Principal employers may be responsible for ensuring facilities if contractors do not provide them, and for timely payment of wages. Equal pay is to be provided for equal work.

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    CONTRACT LABOUR ACT

    Presentation by : A K Basu
    Advisor HR
    The Contract Labour (Regulation & Abolition)Act
    1970

    Application :
    A) Every establishment in which 20 or more
    workmen employed as contract labour
    B) To every contractor who employs 20 or
    more workmen
    Coverage - Whole of India :

    Important Definitions :
    A) “Contract Labour” : Any workmen
    employed in or in connection with
    the work of an establishment by or
    through a contractor
    The Contract Labour (Regulation & Abolition)Act
    1970
    B) “Principal Employer” : Owner or occupier
    of a factory
    C) “Workman” : Has the same definition as
    in Factories’ Act
    Important Sections :
    A) Registration (Section 7) : Principal
    Employer to register his establishment
    with appropriate authority - certificate
    of registration is a must
    B) Prohibition of employment of contract
    labour (Section 10) : State Labour
    Advisory Board may prohibit
    employment of contract labour in
    process, operation or other work of an
    establishment
    The Contract Labour (Regulation & Abolition)Act
    1970
    Considerations for Prohibition :
    A) Where such process, operation or
    other work is incidental to or
    necessary for the establishment
    B) Where it is of perennial nature
    C) Where it is ordinarily done through
    regular workmen in that
    establishment or a similar
    establishment
    D) Where it is sufficient to employ
    considerable number of whole-time
    workers
    The Contract Labour (Regulation & Abolition)Act
    1970
    Licencing of Contractors (Section 12) :
    Contractor must obtain licence from
    appropriate government to do any work with
    contract labour
    Canteen (Section 16) :
    To be provided where contract labour
    numbering 100 or more is ordinarily
    employed
    Rest Room (Section 17) :
    Where contract labour is required to halt
    at night in connection with the work of an
    establishment
    The Contract Labour (Regulation & Abolition)Act
    1970
    Other Facilities (Section 18) :
    Provision for drinking water, latrines,
    urinals and washing facilities - to be
    provided by contractor
    Liability of Principal Employer :
    If canteen, rest room and other facilities
    are not provided by contractor, to be
    provided by principal employer. Cost may
    be recovered from the contractor
    Responsibility for Payment of Wages :
    Primary responsibility of the contractor -
    In case he fails, principal employer’s
    liability. Disbursement of wages to be made
    in the presence of an authorised
    representative of the principal employer
    The Contract Labour (Regulation & Abolition)Act
    1970

    Equal Pay for Equal Work :


    Normally provided in Rules - should not be
    less than minimum wages as per minimum
    Wages Act. In case of contract labour
    performing same or similar kind of work as
    direct workmen engaged by principal
    employer, then wage rates, holidays, hours
    of work and other conditions of services
    shall be same
    Coverage Under ESI

    Coverage Under PF

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