The Contract Labour (Regulation & Abolition) Act, 1970 aims to regulate the employment of contract labour in certain establishments and provide for its abolition under certain circumstances. Some key points: - It applies to establishments employing 20 or more contract workers and contractors employing the same. States can extend it to establishments/contractors with less workers. - It does not apply to intermittent/casual work or work of a seasonal nature below certain thresholds. - Principal employers must register establishments and obtain licenses for contractors. Contractors must maintain records like muster rolls and wages registers. - The Act provides welfare amenities to be provided. Principal employers may be liable for wage payments if contractors default. Appropriate

1. Contract Labour (Regulation &
Abolition) Act, 1970
Construction planning &
legislation
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Presented By:
SANKET INGLE, KUNAL PATIL.

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• It extends to the whole of India
•Total 35 sections
Introduction :
The main objective of this act is to regulate the
contract labour and abolish it in certain cases.
Contract labour :
a workman is deemed to be employed as contract labour in or in
relation to the work of the establishment if he is hired for such work :
By or through a contractor
With or without the knowledge of the principle employer

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a) to every establishment
in which twenty or more workmen are employed or were employed
on any day of the preceding twelve months as contract labour;
b) to every contractor
who employs or who employed on any day of the preceding twelve
months twenty or more workmen:
It applies-
Provided 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.

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a) It shall not apply to establishments in which work only of an intermittent
or casual nature is performed.
b) If a question arises whether work performed in an establishment is of an
intermittent or casual nature, the appropriate Government shall decide
that question after consultation with the Central Board or, as the case
may be, a State Board, and its decision shall be final.
It shall not be applicable-
Explanation.- For the purpose of this sub-section, work performed in an
establishment shall not be deemed to be of an intermittent nature
(i)if it was performed for in the preceding twelve months, or more than one
hundred and twenty days
(ii)if it is of a seasonal character and is performed for more than sixty days in
a year.

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a) to regulate the employment of contract labour in certain establishments
and
b) to provide for its abolition of contract labour in certain circumstances
Object of the act :
Section 16. Canteens.-
Section 17. Rest-rooms.-
Section 18. Other facilities.-
Section 19. First-aid facilities.-
Section 20. Liability of principal employer in certain cases.-
Section 21. Responsibility for payment of wages.-
•Principal employer will have to provide these facilities if not provided by
contractor.
•In annual return these facilities needs to be shown

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a) any office or department of the Government or a local authority; or
b) any place where any industry, trade, business, manufacture or occupation
is carried on;
“Establishment" means-
Registration of establishment
Every such establishment is required to get itself registered under the act

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The act applies to every contractor who employs 20 or more
The contractor covered under this act is required to
•Obtain a license under this act
•Maintain muster rolls and register of wages.
•Provide facilities like canteen facilities, restroom, first aid, drinking water
•Pay wages to workmen in time and in presence of authorized representative
of principle employer.
Section 21 (4) if the contractor
•Fails to make payments of wages, or
•Make short payments of wages
then principle employer is liable to make payment of wages to
contract labour, however he can recover this amount from the
contractor.
“Contractor"

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Appropriate government can prohibit employment of contract labour
•Any process, operation, or work in any establishment, by issuing a notification
However, appropriate government will consider following factors before
issuing such order :
a)Condition of the work and benefits provided to contract labour
b)Whether process, operation, or work is incidental or necessary for the
industry, trade, or business.
c)Whether such process, operation, or work is done ordinarily through regular
workmen or contract labour in other similar establishment.
Prohibition on employment of contract labour

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There is no provision in the contract labour act 1970, which requires
the employer to absorb the contract labour as regular employee, if the
contract labour has been abolished by the government in such organization's.
SAIL Vs NATIONAL UNION OF WATER FRONT WORKERS
Absorption as regular employee

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Besides contract act, following acts are also applicable to contract labour:
Applicability of other laws to contract labour
i. Factory Act, 1948
ii. Industrial disputes Act
iii. Workmen Compensation Act, 1923
iv. Employees’ State Insurance Act, 1948
v. Payment of wages Act
vi. Employees’ Provident Fund & Miscellaneous Provisions Act, 1952

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Obtaining registration & license
i. Apply in form I for registration in triplicate copy along with prescribed
fees ( Rs.142/- ).
ii. Apply in form IV for license in triplicate copy along with license &
security fees ( Rs.370/- per worker Generally in all cases- Refundable) .
iii. For license form V is given by Principal employer to contractor.
Provisions for temporary registration & license
• For work of immediate nature Principal employer/ Contractor can apply
for temporary registration/ license which is valid up to 15 days only.

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Obligation of Principal employer
i. Register of contractors Form XII
ii. Annual return Form XXV
(on or before 15th Feb-consolidated return)
iii. Notice of Commencement/ Form VI B Completion

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Obligation of Contractor
i. Renewal of license Form VII
ii. Register of workman Form XIII
iii. Employment Card Form XIV
iv. Service Certificate Form XV
v. Muster Roll Form XVI
vi. Wages register Form XVII
vii. Wage slip Form XIX

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Conditions;
i. Deduction for damage/loss Form XX
ii. Register of fines Form XXI
iii. Register of advances Form XXII
iv. Register of over-time Form XXIII
v. Half yearly return Form XXIV
vi. Notice of Commencement Form VI A /Completion

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Thank you ;