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“To prevent exploitation of contract labor and also to 
introduce better conditions of work”.
1. This Act may be called as the Contract Labor Act,1970. 
2. It extends to the whole of India 
3. It applies:- 
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 labor. 
b) To every contractor who employees or who employed on any day of the 
preceding twelve months twenty or more workmen
4. Act does not apply to:- 
a) Intermittent nature 
b)Work not perform for more than 120 days 
c)Seasonal nature
Sec 2 (c) CONTRACTOR 
"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 labour or who supplies contract labour for any 
work of the establishment and includes a sub-contractor.
Sec 2 (i) WORKMEN 
"workman" means any person employed in or in 
connection with the work of any establishment to do 
any skilled, semi-skilled or un-skilled manual, 
supervisory, technical or clerical work for hire or 
reward, whether the terms of employment be express 
or implied, but does not include any such person.
 Head of Department or office 
 Occupier/Owner 
 Owner or agent of Owner 
 Any person responsible for supervision
 Central Advisory Contract Labor Board 
 Chairman (appointed by the Central govt.) 
 Chief Labor commissioner 
 Members > 18 not <11 
 State Advisory Contract Labor Board 
 Chairman 
 Labor commissioner (or any other person by 
Govt.) 
 Members>11 not <9
APPOINT SUCH PERSONS TO define the limits, 
within which a registering officer shall exercise the 
powers conferred on him by or under this Act.
1. Every principal employer of an establishment to which this Act 
applies shall, make an application to the registering officer in 
the prescribed manner for registration of the establishment 
2. If the application for registration is complete in all respects, the 
registering officer shall register the establishment and issue to the 
principal employer of the establishment a certificate of 
registration containing such particulars as may be prescribed.
 If the registering officer is satisfied 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
1. The appropriate Government may, after consultation with the Central Board or, as the 
case may be, a State Board, prohibit, by notification in the Official Gazette, employment 
of contract labour in any process, operation or other work in any establishment. 
2. The appropriate Government shall have regard to the conditions of work and benefits 
provided for the contract labour in that establishment and other relevant factors, such as – 
a) Whether the process, operation or other work is incidental to, or necessary for the industry, 
trade, business, manufacture or occupation that is carried on in the establishment
 Appoint such persons define the limits, within which 
a licensing officer shall exercise the powers conferred 
on licensing officers by or under this Act.
1. With effect from such date as the appropriate government shall undertake or execute any work 
through contract labour except under and in accordance with a licence issued in that behalf by the 
licensing officer. 
2. Provisions of this act may contain such conditions including, 
 Hours of work 
 Fixation of wages 
 Other essential amenities
1. Every application for the grant of a licence under sub-section( 
1) of section 12 shall be made in the prescribed form 
and shall contain the particulars 
2. The licensing officer may make investigation 
3. A licence granted shall be valid for the period specified 
therein and may be renewed from time to time
If the licensing officer is satisfied, either on a reference 
made to him in this behalf or otherwise, that-a) 
Obtained by misrepresentation or suppression of any 
material fact 
b) Failed to comply with the conditions subject to which the 
licence has been granted
1. Appropriate Government may make rules 
(a) to which this Act applies, 
(b) Wherein work requiring employment of contract labour is likely to 
continue for such period as may be prescribed, and 
(c) wherein contract labour 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 labour.
1. In every place wherein contract labour is required to halt at night in connection with the 
work of an establishment:- 
(a) To which this Act applies, and 
(b) In which work requiring employment of contract labour is likely to continue for such 
period 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 a clean and comfortable 
condition.
It shall be the duty of every contractor employing 
contract labour to provide and maintain: 
a) A sufficient supply of wholesome drinking water 
b) A sufficient number of latrines and urinals 
situated as to be convenient and accessible to the 
contract labour and 
c) Washing 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 
labour is employed by him.
1. If any amenity required to be provided for the benefit of the contract 
labour employed in an establishment is not provided by the contractor 
within the time prescribed thereof, such amenity shall be provided by the 
principal employer within such time as may be prescribed. 
2. All expenses incurred by the principal employer in providing the 
amenity may be recovered by the principal employer from the contractor 
either by deduction from any amount payable to the contractor under 
any contract or as a debt payable by the contractor.
1. A contractor shall be responsible for 
 Payment of wages to each worker employed by him 
 Shall be paid before the expiry of such period as 
may be prescribed.
2. Duty of principle employer 
 Shall nominate a representative to be present at the time of disbursement of wages 
 Shall be the duty of such representative to certify the amounts paid as wages in 
such manner 
3. It shall be the duty of the contractor to ensure the disbursement of wages in the 
presence of the authorized representative of the principal employer.
4. In case the contractor fails to make payment of 
wages within the prescribed period or makes short 
payment, 
 Then the principal employer shall be liable to make 
payment of wages in full or the unpaid balance due, 
 Recover the amount so paid from the contractor 
either by deduction from any amount payable to the 
contractor under any contract or as a debt payable by 
the contractor.
 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—
 (a) enter, at all reasonable hours, with such 
assistance (if any), being persons in the service of the 
Government or any local or other public authority as 
he thinks fit, any premises or place where contract 
labour is employed, for the purpose of examining 
any register or record or notices required to be 
kept or exhibited by or under this Act or rules made 
thereunder, and require the production thereof for 
inspection; 
 (b) examine any person whom he finds in any such 
premises or place and who, he has reasonable cause 
to believe, is a workman employed therein;
 (c) require any person giving out work and any workman, to give 
any information, which is in his power to give with respect to the 
names and addresses of the persons to, for and from whom the 
work is given out or received, and with respect to the payments to 
be made for the work; 
 (d) seize or take copies of such register, record of wages or 
notices or portions thereof as he may consider relevant in respect 
of an offence under this Act which he has reason to believe has 
been committed by the principal employer or contractor; and 
 (e) exercise such other powers as may be prescribed.

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The contract labour (regulation and abolition)

  • 1.
  • 2. “To prevent exploitation of contract labor and also to introduce better conditions of work”.
  • 3. 1. This Act may be called as the Contract Labor Act,1970. 2. It extends to the whole of India 3. It applies:- 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 labor. b) To every contractor who employees or who employed on any day of the preceding twelve months twenty or more workmen
  • 4. 4. Act does not apply to:- a) Intermittent nature b)Work not perform for more than 120 days c)Seasonal nature
  • 5. Sec 2 (c) CONTRACTOR "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 labour or who supplies contract labour for any work of the establishment and includes a sub-contractor.
  • 6. Sec 2 (i) WORKMEN "workman" means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person.
  • 7.  Head of Department or office  Occupier/Owner  Owner or agent of Owner  Any person responsible for supervision
  • 8.  Central Advisory Contract Labor Board  Chairman (appointed by the Central govt.)  Chief Labor commissioner  Members > 18 not <11  State Advisory Contract Labor Board  Chairman  Labor commissioner (or any other person by Govt.)  Members>11 not <9
  • 9.
  • 10. APPOINT SUCH PERSONS TO define the limits, within which a registering officer shall exercise the powers conferred on him by or under this Act.
  • 11. 1. Every principal employer of an establishment to which this Act applies shall, make an application to the registering officer in the prescribed manner for registration of the establishment 2. If the application for registration is complete in all respects, the registering officer shall register the establishment and issue to the principal employer of the establishment a certificate of registration containing such particulars as may be prescribed.
  • 12.  If the registering officer is satisfied 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
  • 13. 1. The appropriate Government may, after consultation with the Central Board or, as the case may be, a State Board, prohibit, by notification in the Official Gazette, employment of contract labour in any process, operation or other work in any establishment. 2. The appropriate Government shall have regard to the conditions of work and benefits provided for the contract labour in that establishment and other relevant factors, such as – a) Whether the process, operation or other work is incidental to, or necessary for the industry, trade, business, manufacture or occupation that is carried on in the establishment
  • 14.
  • 15.  Appoint such persons define the limits, within which a licensing officer shall exercise the powers conferred on licensing officers by or under this Act.
  • 16. 1. With effect from such date as the appropriate government shall undertake or execute any work through contract labour except under and in accordance with a licence issued in that behalf by the licensing officer. 2. Provisions of this act may contain such conditions including,  Hours of work  Fixation of wages  Other essential amenities
  • 17. 1. Every application for the grant of a licence under sub-section( 1) of section 12 shall be made in the prescribed form and shall contain the particulars 2. The licensing officer may make investigation 3. A licence granted shall be valid for the period specified therein and may be renewed from time to time
  • 18. If the licensing officer is satisfied, either on a reference made to him in this behalf or otherwise, that-a) Obtained by misrepresentation or suppression of any material fact b) Failed to comply with the conditions subject to which the licence has been granted
  • 19.
  • 20. 1. Appropriate Government may make rules (a) to which this Act applies, (b) Wherein work requiring employment of contract labour is likely to continue for such period as may be prescribed, and (c) wherein contract labour 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 labour.
  • 21. 1. In every place wherein contract labour is required to halt at night in connection with the work of an establishment:- (a) To which this Act applies, and (b) In which work requiring employment of contract labour is likely to continue for such period as may be prescribed,
  • 22. 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 a clean and comfortable condition.
  • 23. It shall be the duty of every contractor employing contract labour to provide and maintain: a) A sufficient supply of wholesome drinking water b) A sufficient number of latrines and urinals situated as to be convenient and accessible to the contract labour and c) Washing facilities
  • 24.  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 labour is employed by him.
  • 25. 1. If any amenity required to be provided for the benefit of the contract labour employed in an establishment is not provided by the contractor within the time prescribed thereof, such amenity shall be provided by the principal employer within such time as may be prescribed. 2. All expenses incurred by the principal employer in providing the amenity may be recovered by the principal employer from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.
  • 26. 1. A contractor shall be responsible for  Payment of wages to each worker employed by him  Shall be paid before the expiry of such period as may be prescribed.
  • 27. 2. Duty of principle employer  Shall nominate a representative to be present at the time of disbursement of wages  Shall be the duty of such representative to certify the amounts paid as wages in such manner 3. It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer.
  • 28. 4. In case the contractor fails to make payment of wages within the prescribed period or makes short payment,  Then the principal employer shall be liable to make payment of wages in full or the unpaid balance due,  Recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.
  • 29.  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—
  • 30.  (a) enter, at all reasonable hours, with such assistance (if any), being persons in the service of the Government or any local or other public authority as he thinks fit, any premises or place where contract labour is employed, for the purpose of examining any register or record or notices required to be kept or exhibited by or under this Act or rules made thereunder, and require the production thereof for inspection;  (b) examine any person whom he finds in any such premises or place and who, he has reasonable cause to believe, is a workman employed therein;
  • 31.  (c) require any person giving out work and any workman, to give any information, which is in his power to give with respect to the names and addresses of the persons to, for and from whom the work is given out or received, and with respect to the payments to be made for the work;  (d) seize or take copies of such register, record of wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by the principal employer or contractor; and  (e) exercise such other powers as may be prescribed.