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S.D.M COLLEGE OF ENGINEERING
&
TECHNOLOGY,DHARWAD
DEPARTMENT OF MANAGEMENT STUDIES
ASSIGNMENT ON
CONTRACT LABOUR ACT
SUBMITTED BY
1) NIRANJAN C
2) NAVEEN K N
3) RAHUL V G
This Act may be called the Contract Labor (Regulation and Abolition)
Act, 1970.It extends to the whole of India.It shall come into force on
such date as the Central Government may, by notification in the Official
Gazette, appoint and different dates may be appointed for different
provisions of this Act.
IT APPLIES
1)To every establishment in which twenty or more workmen are
employed or were employed on any day of the preceding twelve months
as contract labor;
2)To every contractor who employs or who employed on any day of the
preceding twelve months twenty or more workmen:
PROVIDEDS
That the appropriate government may, after giving not less than two
months' notice of its intention so to do, by notification in the Official
Gazette, apply the provisions of this Act to any establishment or
contractor employing such number of workmen less than twenty as may
be specified in the notification.
DEFINITIONS
In this Act, unless the context otherwise requires,-
(a) "appropriate government" means-
(i) in relation to an establishment in respect of which the appropriate
government under the Industrial Disputes Act, 1947 (14 of 1947), is the
Central Government, the Central Government;
(b) a workman shall be deemed to be employed as "contract labor" in or
in connection with the work of an establishment when he is hired in or in
connection with such work by or through a contractor, with or without
the knowledge of the principal employer;
(c) "contractor", in relation to an establishment, means a person who
undertakes to produce a given result for the establishment, other than a
mere supply of goods or articles of manufacture to such establishment,
through contract labor or who supplies contract labor for any work of the
establishment and includes a sub-contractor.
OBJECTIVES
The main objective of the act was to stop exploitation of these laborers
and to abolish the practice of contract labour where
1)The work is of perennial nature.
2)The work is incidental to and necessary for the work of the factory i.e
the principal activity of the industry e.g., work related to production.
3)The work is of the nature that it can employ considerable number of
whole time workmen .
4)the work can be done by ordinary or regular workmen.
APPLICATIONS OF THE ACT
The act applies to all the establishments where the number of workmen
employed as contract labour are 20 or more .on any day of the preceding
twelve months. it includes all the contracts of Govts and local
authorities as well.
The act does not apply to establishments where the work done is
intermittent or seasonal nature it will come under the act only when the
work is performed for more then 120 days in a year and more then 60
days in a year when the work is of a seasonal nature.
Registration Of Establishments Employing Contract Labour
1)Appointment of registering officers:
The appropriate government may, by an order notified in the Official
Gazette-
(a) appoint such persons, being Gazetted Officers of government, as it
thinks fit to be registering officers for the purpose of this chapter; and
(b) define the limits, with in which a registering officer shall exercise the
powers conferred on him by or under this Act.
2)Registration of certain establishments
Every principal employer of an establishment to which this Act applies
shall, within such period as the appropriate government may, by
notification in the Official Gazette, fix in this behalf with respect to
establishment generally or with respect to any class of them, make an
application to the registering officer in the prescribed manner for
registration of the establishment.
3)Revocation of registration in certain cases
If the registering officer is satisfied, either on a reference made to him in
this behalf or otherwise, that the registration of any establishment has
been obtained by misrepresentation or suppression of any material fact,
or that for any other reason the registration has become useless or
ineffective and, therefore requires to be revoked, the registering officer
may, after giving an opportunity to the principal employer of the
establishment to be heard and with the previous approval of the
appropriate government, revoke the registration .
Licensing Of Contractors
1)Appointment of licensing officers
The appropriate government may, by an order notified in the Official
Gazette-
(a) appoint such person, being Gazetted Officers of government, as it
thinks fit to be licensing officers for the purposes of this chapter; and
(b) define the limits, within which a licensing officer shall exercise the
powers conferred on licensing officers by or under this Act.
2)Licensing of contractors
1) With effect from such date as the appropriate government may, by
notification in the Official Gazette, appoint no contractor to whom this
Act applies, shall undertake or execute any work through contract labor
except under and in accordance with a license issued in that behalf by
the licensing officer.
2) Subject to the provisions of this Act, a license under sub-section (1)
may contain such conditions including, in particular, conditions as to
hours of work, fixation of wages and other essential amenities in respect
of contract labor as the appropriate government may deem fit to impose
in accordance with the rules, if any, made under section 35 and shall be
issued on payment of such fees and on the deposit of such sum, if any, as
security for the due performance of the conditions as may be prescribed.
3)Grant of licenses
1) Every application for the grant of license under sub-section (1) of
section 12 shall be made in the prescribed form and shall contain the
particulars regarding the location of the establishment, the nature of
process, operation or work for which contract labor is to be employed
and such other particulars as may be prescribed.
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.
Welfare And Health Of Contract Labour
1)Canteens
a) wherein work requiring employment of contract labor is likely to
continue for such period as may be prescribed, and
b) wherein contract labor numbering one hundred or more is ordinarily
employed by a contractor, one or more canteens shall be provided and
maintained by the contractor for the use of such contract labor.
2)Rest-rooms
(1) In every place where in contract labor is required to halt at night in
connection within the work of an establishment-
(a) to which this Act applies, and
(b) in which work requiring employment of contract labor is likely to
continue for such period as may be prescribed, there shall be provided
and maintained by the contractor for the use of the contract labor such
number of rest-rooms or such other suitable alternative accommodation
with such time as may be prescribed.
(2) The rest-rooms or the alternative accommodation to be provided
under subsection (1) shall be sufficiently lighted and ventilated and shall
be maintained in clean and comfortable condition.
3)First-aid facilities
There shall be provided and maintained by the contractor so as to be
readily accessible during all working hours a first-aid box equipped with
the prescribed contents at every place where contract labor is employed
by him.
4)Responsibility for payment of wages
(1) A contractor shall be responsible for payment of wages to each
worker employed by him as contract labor and such wages shall be paid
before the expiry of such period as may be prescribed.
(2) Every principal employer shall nominate a representative duly
authorized by him to be present at the time of disbursement of wages by
the contractor and it shall be the duty of such representative to certify the
amounts paid as wages in such manner as may be prescribed.
(3) It shall be the duty of the contractor or ensure the disbursement of
wages in the presence of the authorized representative of the principal
employer.
Penalties And Procedure
1)Contravention of provisions regarding employment of contract
labor
Whoever contravenes any provision of this Act or of any rules made
there under prohibiting, restricting or regulating the employment of
contract labor, or contravenes any condition of a license granted under
this Act, shall be punishable with imprisonment for a term which may
extend to three months, or with fine which may extend to one thousand
rupees, or with both, and in the case of a continuing contravention with
an additional fine which may extend to one hundred rupees for every
day during which such contravention continues after conviction for the
first such contravention..
2)Other offences
If any person contravenes any of the provisions of this Act or of any
rules made thereunder for which no other penalty is elsewhere provided,
he shall be punishable with imprisonment for a term which may extend
to three months, or with fine which may extend to one thousand rupees,
or with both.
3)Offences by companies
1) If the person committing an offence under this Act is a company, the
company as well as every person in charge of, and responsible to, the
company for the conduct of its business at the time of commission of the
offence shall be deemed to be guilty of the offence and shall be liable to
be proceeded against and punished accordingly.
PROVIDED that nothing contained in this sub-section shall render any
such person liable to any punishment if he proves that the offence was
committed without his knowledge or that he exercised all due diligence
to prevent the commission of such offence.
Miscellaneous
1)Inspecting staff
(1) The appropriate government may, by notification in the Official
Gazette, appoint such persons as it thinks fit to be inspectors for the
purposes of this Act, and define the local limits within which they shall
exercise their powers under this Act.
(2) Subject to any rules made in this behalf, an inspector may, within the
local limits for which he is appointed.
2)Registers and other records to be maintained
(1) Every principal employer and every contractor shall maintain such
register and records giving such particulars of contract labor employed,
the nature of work performed by the contract labor, the rate of wages
paid to the contract labor and such other particulars in such form as may
be prescribed.
(2) Every principal employer and every contractor shall keep exhibited
in such manner as may be prescribed within the premises of the
establishment where the contract labor is employed, notices in the
prescribed form containing particulars about the hours of work, nature of
duty and such other information
3)Power to give directions
The Central Government may give directions to the Government of any
State as to the carrying into execution in the State of the provisions
contained in this Act.
4)Power to remove difficulties
If any difficulty arises in giving effect to the provisions of this Act, the
Central Government may, by order published in the Official Gazette,
make such provisions not inconsistent with the provisions of this Act, as
appears to it to be necessary or expedient for removing the difficulty.
5) Power to make rules
(1) The appropriate government may, subject to the condition of
previous publication, make rules for carrying out the purposes of this
Act.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters,
namely
(a) the number of persons to be appointed members representing various
interests on the Central Board and the State Board, the term of their
office and other conditions of service, the procedure to be followed in
the discharge of their functions and the manner of filling vacancies.
(b) the times and places of the meetings of any committee constituted
under that Act, the procedure to be followed at such meeting including
the quorum necessary for the transaction of business, and the fees and
allowances that may be paid to the members of a committee;
Recent Changes in Act
Amendments to the Contract Labor Act, 1970:
This act is now applicable to establishments employing 50 contract
workers, the earlier threshold being 20. This increase in upper limits
ensures better compliance be small entrepreneurs and contractors.
Companies now have the flexibility to hire employees or lay them off to
adjust to the demand-supply scenario that exists in the markets at any
given time. Loss- making businesses can be dumped without delay or
without loss of precious resources. With the reduced thresholds for labor
union memberships, inter-union conflicts and multiplicity can be
reduced or even completely avoided. The management-labour interface
reduces leading to fewer conflicts and lessens the losses due to these
conflicts. With the Amendments in the Factories Act reducing the
number of workers in a factory, companies now have reduced burden of
compliance, allowing factory a management greater accent on
production innovation and harnessing efficiencies.
Contract Labor Act 1970 Report

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Contract Labor Act 1970 Report

  • 1. S.D.M COLLEGE OF ENGINEERING & TECHNOLOGY,DHARWAD DEPARTMENT OF MANAGEMENT STUDIES ASSIGNMENT ON CONTRACT LABOUR ACT SUBMITTED BY 1) NIRANJAN C 2) NAVEEN K N 3) RAHUL V G
  • 2. This Act may be called the Contract Labor (Regulation and Abolition) Act, 1970.It extends to the whole of India.It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. IT APPLIES 1)To every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labor; 2)To every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen: PROVIDEDS That the appropriate government may, after giving not less than two months' notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or contractor employing such number of workmen less than twenty as may be specified in the notification. DEFINITIONS In this Act, unless the context otherwise requires,- (a) "appropriate government" means- (i) in relation to an establishment in respect of which the appropriate government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government; (b) a workman shall be deemed to be employed as "contract labor" in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer;
  • 3. (c) "contractor", in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labor or who supplies contract labor for any work of the establishment and includes a sub-contractor. OBJECTIVES The main objective of the act was to stop exploitation of these laborers and to abolish the practice of contract labour where 1)The work is of perennial nature. 2)The work is incidental to and necessary for the work of the factory i.e the principal activity of the industry e.g., work related to production. 3)The work is of the nature that it can employ considerable number of whole time workmen . 4)the work can be done by ordinary or regular workmen. APPLICATIONS OF THE ACT The act applies to all the establishments where the number of workmen employed as contract labour are 20 or more .on any day of the preceding twelve months. it includes all the contracts of Govts and local authorities as well. The act does not apply to establishments where the work done is intermittent or seasonal nature it will come under the act only when the work is performed for more then 120 days in a year and more then 60 days in a year when the work is of a seasonal nature.
  • 4. Registration Of Establishments Employing Contract Labour 1)Appointment of registering officers: The appropriate government may, by an order notified in the Official Gazette- (a) appoint such persons, being Gazetted Officers of government, as it thinks fit to be registering officers for the purpose of this chapter; and (b) define the limits, with in which a registering officer shall exercise the powers conferred on him by or under this Act. 2)Registration of certain establishments Every principal employer of an establishment to which this Act applies shall, within such period as the appropriate government may, by notification in the Official Gazette, fix in this behalf with respect to establishment generally or with respect to any class of them, make an application to the registering officer in the prescribed manner for registration of the establishment. 3)Revocation of registration in certain cases If the registering officer is satisfied, either on a reference made to him in this behalf or otherwise, that the registration of any establishment has been obtained by misrepresentation or suppression of any material fact, or that for any other reason the registration has become useless or ineffective and, therefore requires to be revoked, the registering officer may, after giving an opportunity to the principal employer of the establishment to be heard and with the previous approval of the appropriate government, revoke the registration .
  • 5. Licensing Of Contractors 1)Appointment of licensing officers The appropriate government may, by an order notified in the Official Gazette- (a) appoint such person, being Gazetted Officers of government, as it thinks fit to be licensing officers for the purposes of this chapter; and (b) define the limits, within which a licensing officer shall exercise the powers conferred on licensing officers by or under this Act. 2)Licensing of contractors 1) With effect from such date as the appropriate government may, by notification in the Official Gazette, appoint no contractor to whom this Act applies, shall undertake or execute any work through contract labor except under and in accordance with a license issued in that behalf by the licensing officer. 2) Subject to the provisions of this Act, a license under sub-section (1) may contain such conditions including, in particular, conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labor as the appropriate government may deem fit to impose in accordance with the rules, if any, made under section 35 and shall be issued on payment of such fees and on the deposit of such sum, if any, as security for the due performance of the conditions as may be prescribed. 3)Grant of licenses 1) Every application for the grant of license under sub-section (1) of section 12 shall be made in the prescribed form and shall contain the particulars regarding the location of the establishment, the nature of
  • 6. process, operation or work for which contract labor is to be employed and such other particulars as may be prescribed. 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.
  • 7. Welfare And Health Of Contract Labour 1)Canteens a) wherein work requiring employment of contract labor is likely to continue for such period as may be prescribed, and b) wherein contract labor numbering one hundred or more is ordinarily employed by a contractor, one or more canteens shall be provided and maintained by the contractor for the use of such contract labor. 2)Rest-rooms (1) In every place where in contract labor is required to halt at night in connection within the work of an establishment- (a) to which this Act applies, and (b) in which work requiring employment of contract labor is likely to continue for such period as may be prescribed, there shall be provided and maintained by the contractor for the use of the contract labor such number of rest-rooms or such other suitable alternative accommodation with such time as may be prescribed. (2) The rest-rooms or the alternative accommodation to be provided under subsection (1) shall be sufficiently lighted and ventilated and shall be maintained in clean and comfortable condition. 3)First-aid facilities There shall be provided and maintained by the contractor so as to be readily accessible during all working hours a first-aid box equipped with
  • 8. the prescribed contents at every place where contract labor is employed by him. 4)Responsibility for payment of wages (1) A contractor shall be responsible for payment of wages to each worker employed by him as contract labor and such wages shall be paid before the expiry of such period as may be prescribed. (2) Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed. (3) It shall be the duty of the contractor or ensure the disbursement of wages in the presence of the authorized representative of the principal employer.
  • 9. Penalties And Procedure 1)Contravention of provisions regarding employment of contract labor Whoever contravenes any provision of this Act or of any rules made there under prohibiting, restricting or regulating the employment of contract labor, or contravenes any condition of a license granted under this Act, shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both, and in the case of a continuing contravention with an additional fine which may extend to one hundred rupees for every day during which such contravention continues after conviction for the first such contravention.. 2)Other offences If any person contravenes any of the provisions of this Act or of any rules made thereunder for which no other penalty is elsewhere provided, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both. 3)Offences by companies 1) If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
  • 10. PROVIDED that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
  • 11. Miscellaneous 1)Inspecting staff (1) The appropriate government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be inspectors for the purposes of this Act, and define the local limits within which they shall exercise their powers under this Act. (2) Subject to any rules made in this behalf, an inspector may, within the local limits for which he is appointed. 2)Registers and other records to be maintained (1) Every principal employer and every contractor shall maintain such register and records giving such particulars of contract labor employed, the nature of work performed by the contract labor, the rate of wages paid to the contract labor and such other particulars in such form as may be prescribed. (2) Every principal employer and every contractor shall keep exhibited in such manner as may be prescribed within the premises of the establishment where the contract labor is employed, notices in the prescribed form containing particulars about the hours of work, nature of duty and such other information 3)Power to give directions The Central Government may give directions to the Government of any State as to the carrying into execution in the State of the provisions contained in this Act.
  • 12. 4)Power to remove difficulties If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty. 5) Power to make rules (1) The appropriate government may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely (a) the number of persons to be appointed members representing various interests on the Central Board and the State Board, the term of their office and other conditions of service, the procedure to be followed in the discharge of their functions and the manner of filling vacancies. (b) the times and places of the meetings of any committee constituted under that Act, the procedure to be followed at such meeting including the quorum necessary for the transaction of business, and the fees and allowances that may be paid to the members of a committee;
  • 13. Recent Changes in Act Amendments to the Contract Labor Act, 1970: This act is now applicable to establishments employing 50 contract workers, the earlier threshold being 20. This increase in upper limits ensures better compliance be small entrepreneurs and contractors. Companies now have the flexibility to hire employees or lay them off to adjust to the demand-supply scenario that exists in the markets at any given time. Loss- making businesses can be dumped without delay or without loss of precious resources. With the reduced thresholds for labor union memberships, inter-union conflicts and multiplicity can be reduced or even completely avoided. The management-labour interface reduces leading to fewer conflicts and lessens the losses due to these conflicts. With the Amendments in the Factories Act reducing the number of workers in a factory, companies now have reduced burden of compliance, allowing factory a management greater accent on production innovation and harnessing efficiencies.