The contract Labour act, 1970

1. The Contract Labour Act, 1970
Regulation or Abolition of labours on contract
- Itti Rehan

2. Condition of Contract Labour before this Act
1. Exploitation of contract labours
2. Poor working conditions

3. What does this Act do?
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.

4. Terms related to the Act (Section 2)
1. Contract Labour- workers hired on a particular task for a particular period of time
through a contractor.
2. Establishment- an organization that needs and hires contract labours
3. Principal Employer - Owner or any person responsible for the supervision and
control of the establishment.
4. Contractor - A person who provides contract labours to the establishment

5. Extent of the Act (Section 1)
1. This extends to whole of India.
2. Covers both government and non - government establishments
3. This applies to
a. Any establishment with 20 or more workers
b. Any contractor who has provided 20 or more workers
4. Doesn’t apply to any establishment with intermittent or casual nature

6. Advisory Boards
1. Central Advisory Board (11- 18 members)- under central government
a. Chairman
b. Chief Labour Commissioner
2. State Advisory Board (under 9- 11) - under state government
a. Chairman
b. Labour Commissioner

7. Registrations of Establishments (Section 6 - 10)
1. Principal employer should make an application to the registering officer. If the
application is valid, then certificate of registration is issued to the
establishment(section 7).
2. If the registering officer is satisfied that the registration of the establishment has
been obtained by misinterpretation or suppression of any material fact, then the
registration becomes useless or ineffective (Section 8). This leads to prohibition of
employment of contract labours (Section 10).

8. Licensing of contractors (Section 11 - 14)
1. A license is issued to the contractor after he fills up the application, by the
licensing officer (Section 12, 13).
2. Provisions covered in the application are:
a. Hours of work
b. Fixation of wages
c. Other essential amenities
3. This license may be revoked if the licensing officer is satisfied that the contractor
filled up misleading information in the application(Section 14).

9. Welfare and Health(section 16 - 21)
1. Canteen
2. Rest- rooms
3. Drinking water
4. Washing facilities
5. Responsibility of permanent wages