THE ACT WAS ENACTED WITH AVIEW TO REGULATE THE
CONTRACT LABOUR AND TO PROVIDE FOR ITS ABOLITION
IN CERTAIN CERCUMSTANCES.
THE UNDERLYING POLICIES OF THE ACT IS TO ABOLISH
CONTRACT LABOUR WHEREVER POSSIBLE AND
BENEFITS OF CONTRACT LAW
The need of contract law is undisputed. It is necessary for the
following among other reasons.
The contract labour would ensure speedy completion of the
Comparatively cheaper with less liability on supervision
There will not be much union activities.
There is no need of permanent retention of employee.
It is best system for certain activities like construction,
repairs of machines, packing, loading & unloading, etc.
APPLICABILITY & NOT APPLICABLE
To every establishment in which 20 or more workmen are
To every contractor who employs or employed on any one
day of the preceding 12 month 20 or more contract
To establishment in which work only is of only an
intermittent or casual nature is performed.
(Non-intermittent: more than 120 days, seasonal work more
Who undertakes to provide a given result for the
establishment other than mere supply of goods or
articles to such establishment.
Government-local authority- head of department
Factory- the owner, manager
Mines- the owner, agent.
APPLICABILITY OF OTHER ACT
Persons cover under this act will be covered under:
Factory Act, 1948
Employees’ Provident Fund & Miscellaneous
Provisions Act, 1952
Employees’ State Insurance Act, 1948 / Workmen
Compensation Act, 1923
Payment of Bonus Act, 1965
Minimum Wages Act, 1948
Payment of Wages Act, 1936
VARIOUS SECTIONS UNDER THIS ACT
Sec 11 appointment of licensing officer
Sec 12 licensing of contractor
Sec 13 grant of license
Sec 14 revocation, suspension of license
Sec 15 appeal
Sec 16 canteen
Sec 17 rest room
sec 18 other facilities
sec 19 first Aid facilities
Sec 20 liabilities of principal employer in certain case
sec 21 responsibility for the payment of wages
SEC 35 POWER TO MAKE RULES
Obligation of principal employer
1. Principal employer to get his establishment registered under
the act and rules. ( prosecution under sec 23, 24& 25)
2. Contractors must be licenses.
3. Principal employer must provide certain amenities.
If employment of contract labour is likely to continue for more
than 6 month and employ contract labour of 100 or morecontractor should provide canteen within 60 days of
employment of contract labour.
REST ROOM- within 15 days of commencement, if 3 month or
FIRST AID FACILITIES – 1 box for every 150 employees.
Where 50 or more women are employed as contract labour
there shall be provided 2 rooms of reasonable dimension.
Prohibition of female employment before 6am and after 7 pm
Atleast one urinal for every 50 male & female employees.
Adequate supply of water @ of 20 lts per employee.
PAYMENT OF WAGES
No wages period shall exceed one month
If employment is terminated, wages should be
disbursed before the expiry of second working day.
All deductions shall be in accordance with the
provision payment of wages Act 1936.
It shall be paid in current coin or currency and to be
paid at work site.
The contractor shall disburse the wages in the
presence of the principal employer.
AIR INDIA STATUTORY CORPORATION-1997 (1) LLN 75
Contract labour engaged by air India for sweeping, cleaning.
Dusting and washing of building are to be absorbed by air
STEEL AUTHORITY OF INDIA Vs national union water
front worker and other (5 judges bench- 2001LLR
Notification by government prohibiting employment of
contractor labour for sweeping , cleaning, dusting and
washing of building by establishments governed by
SATTE OF HARYANA Vs SURENDRA KUMAR
Contract workman can not claim equal pay on par with