THE CONTRACT LABOUR (REGULATION AND

ABOLITION) ACT, 1970

Ashraf
Wasif
Shobhit
Shubhangi
Akanksha
Kajal

 OBJECTIVE
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.

LATEST AMENDMENTS
The Contract Labour (Regulation and Abolition)
(Amendment) Act, 1986.
The Delegated Legislation Provisions (Amendment) Act,
2004.

COVERAGE
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 labour;

(b) to every contractor who employees or who employed

on any day of the preceding twelve months twenty or
more workmen: 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.
(c) It shall not apply to establishments in which work only
of an intermittent or casual nature is performed.
(d) 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.

 EXEMPTION
Power to exempt in special cases- The appropriate
Government may, in the case of an emergency, direct,
by notification in the Official Gazette. The rules made
shall not apply to any establishment or any class of
contractors.

ADMINISTRATION
THE ADVISORY BOARDS
(A) CENTRAL ADVISORY BOARD
The Central Advisory Contract Labour Board shall
consist of
(a) A Chairman to be appointed by the Central
Government;
(b) The Chief Labour Commissioner (Central), ex-officio;

 The Central Advisory Board formation is done through

nomination of members by Central Governmenta) Strength- Not >17 and not <11
b) Representation- Government, railways, coal industry,
mining industry, contractors, workmen, and any other
on the discretion of Central Government.
c) Representation of workmen should not be less than
principal employer/contractor.
(B) STATE ADVISORY BOARD
) State Advisory Contract Labour Board shall
consist of(a) A Chairman to be appointed by the State
Government;
(b) The Labour Commissioner, ex-officio, or in his
absence any other officer nominated by the State
Government in that behalf;

State Advisory Boarda) Constituted by State Government

b) Strength- Not >11 and not <9
c) Representation- Government, the industry, the
contractors, the workmen and any other on the
discretion of State Government
d) Representation of workmen should not be less than
principal employer/contractor.

)SALIENT PROVISIONS
) LIABILITIES OF THE PRINCIPAL EMPLOYER (SEC. 20)
1. To pay wages incase the contractor fails to do so .
2. To nominate a representative to be present at the time of
disbursement of wages by the contractor.
3. To provide welfare and health facilities.
4. Right to recover the expenses involved from the
Contractor through bills payable.

5. Maintain a register and records in form XII giving

particulars like No of Contractors and contract labour employed.
Nature of work.
Rate of wages.
6. Display Notice at a conspicuous place in English and
Local
Language containing information like Rate of wages.
Hour of work.
Wage period.
Date of payment of wages.
Name and address of the Inspectors.
7. Submission of yearly return to Licensing Officer in
Form XXV.23

 LIABILITIES OF THE CONTRACTOR

1. Maintain a register in form XIII containing information
like. Muster Roll
. Wages
. Deductions.
. Over time
. Fines
. Advance
. Wage slips
2. Issue an employment card in form XIV to each worker
and to
issue a service certificate on termination
of employment in form XV.
3. Submission of half yearly return to Licensing Officer
in Form XXIV.

 PENALTIES
Imprisonmentfor a term which may extendto
three months,
Or withfinewhich may extend tofive hundred
rupees,
Or with both.

ASSESSMENT

o
o

o
o
o

Pros
Check on labour exploitation
Improvement in facilities & job benefits.
Cons
Act doesnt entirely abolish contract labour
No firm basis for the courts to pass judgment
Ambiguity

RECOMMENDATIONS
The Commission also recommends the
following:
a) the contract labourers are extended all the benefits
that are extended to a regular employee under labour
and welfare legislations.
b) all debts owed by them to their contractors be
waived
c) contract laborers be treated as workmen within the
meaning of the Workmen's Compensation Act 1923 for
accidents arising during the course of employment

e) principles of equal work for equal pay as envisaged in

Article 39 (d) of the Constitution should be specifically
incorporated in the Act.
f) Women labour/welfare officers be compulsorily
provided in establishment having strength of more than
100employees.
g) Women workers should not be made to work for more
than 12 hours in a working day and they should not be
compelled to work in the nights.
d) provisions of the Industrial Disputes Act 1947 be
applicable to the matters related to contract labourers

 Source: http://ncw.nic.in/frmReportLaws33.aspx
http://pblabour.gov.in/pdf/acts_rules/contract_la
bour_regulation_and_abolition_act_1970.pdf
www.advocatekhoj.com