The Contract Labour (regulation And Abolition) Act, 1970 By: Arunima Sharma ArpitaGhosh BushraZaheer Khan Md. 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. case 1961- Indian labour conference 1962-Recommendation to the bill 1967- Bill moved to lokSabha 1968- Reference to Joint committee 1970- Bill passed 1971- Enforcement of Act
Terminology Establishment Contractor Employer Intermittent Revocation Appropriate government
Registration (Sec 7) & Licensing (Sec 12) Registration License This is taken by Contractor This is taken by the Principal Employer. This is valid for only one year / should renewed before due date. This is not renewable on year to year basis 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 Issued on Payment of fees. Issued on Payment of Fee & Security money Bank Draft + Certt. Of P.E. Is required (Form V) For only Bank Draft Required. There is full Annx. Containing conditions for fulfillment by contractor. No Conditions are attached as a part certt.
Liabilities of the Principal Employer(Sec. 20) To pay wages incase thecontractor 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.
(Sec. 10) Prohibition of employment of contract labour.
(Sec. 9) Effect of non-registration.
(Sec. 14) Revocation, suspension and amendment of
(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) Factories Act 1948. Employee’s Provident Funds &Miscellaneous Provision Act 1952. The Employees State Insurance Act 1948. The Payment of Wages Act 1936. The Minimum Wages Act 1948. The Industrial Disputes Act 1947. 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