Contract Labour (Regulation and Abolition) Act 1970
Contract Labour (Regulation and Abolition) Act 1970
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. BE it enacted by
Parliament in the Twenty-first Year of the Republic of India as follows :-- CHAP
PRELIMINARY CHAPTER I PRELIMINARY
1. Short title, extent, commencement and application.- (1) This Act may be called the Contract
Labour (Regulation and Abolition) Act,
(3) It shall come into force on such date 1* as the Central Government may, by notification in
the Official Gazette, appoint and different dates may be appointed for different provisions of this
Act.
(4) 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 employes 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.
(5) (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
--------------------------------------------------------------------- 1. 10th February, 1971; vide
Notification No. G.S.R. 190 dated 1-2- 1971, Gazette of India, 1971, Pt. II, Sec. 3(i), p.173. 502
decide that question after consultation with the Central Board or, as the case may be, a State
Board, and its decision shall be final. 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 more than one hundred and twenty days in the preceding twelve months, or (ii) if
it is of a seasonal character and is performed for more than sixty days in a year.
Definitions.
2. Definitions.- (1) In this Act, unless the context otherwise requires,-- 1*[(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; (ii) in relation to any other establishment, the Government of the State
in which that other establishment is situate;] (b) a workman shall be deemed to be employed as
"contract labour" 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 of
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; (d) "controlled industry"
means any industry the control of which by the Union has been declared by any Central Act to be
expedient in the public interest; --------------------------------------------------------------------- 1.
Subs. by Act 14 of 1986, s. 2 (w.e.f. 28.1.1986). 503 (e) "establishment" means-- (i) any office or
department of the Government or a local authority, or (ii) any place where any industry, trade,
business, manufacture or occupation is carried on; (f) "prescribed" means prescribed by rules
made under this Act; (g) "principal employer" menas-- (i) in relation to any office or department
of the Government or a local authority, the head of that office or department or such other officer
as the Government or the local authority, as the case may be, may specify in this behalf, (ii) in a
factory, the owner or occupier of the factory and where a person has been named as the manager
of the factory under the Factories Act, 1948 (63 of 1948) the person so named, (iii) in a mine, the
owner or agent of the mine and where a person has been named as the manager of the mine, the
person so named, (iv) in any other establishment, any person responsible for the supervision and
control of the establishment. Explanation.--For the purpose of sub-clause (iii) of this clause, the
expressions "mine", "owner" and "agent" shall have the meanings respectively assigned to them
in clause (j), clause (l) and clause (c)
of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952); (h) "wages" shall have the
meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936);
(i) "workman" means any person employed in or in connection with the work of any
establishment to do any skilled, semiskilled 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-- (A) who is employed mainly in a managerial or
administrative capacity; or (B) who, being employed in a superviory capacity draws wages
exceeding five hundred rupees per mensem or exercises, either by the nature of the duties
attached to the office or by reason of the powers vested in him, functions mainly of a managerial
nature; or 504 (C) who is an out-worker, that is to say, a person to whom any articles or materials
are given out by or on behalf of the Principal employer to be made up, cleaned, washed, altered,
ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the
trade or business of the principal employer and the process is to be carried out either in the home
of the out-worker or in some other premises, not being premises under the control and
management of the principal employer.
(2) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir
shall, in relation to that State, be construed as a reference to the corresponding law, if any, in
force in that State. CHAP THE ADVISORY BOARDS CHAPTER II THE ADVISORY
BOARDS
3. Central Advisory Board.- (1) The Central Government shall, as soon as may be, constitute a
board to be called the Central Advisory Contract Labour Board (hereinafter referred to as the
Central Board) to advise the Central Government on such matters arising out of the
administration of this Act as may be referred to it and to carry out other functions assigned to it
under this Act.
(2) The Central Board shall consist of-- (a) a Chairman to be appointed by the Central
Government; (b) the Chief Labour Commissioner (Central), ex-officio; (c) such number of
members, not exceeding seventeen but not less than eleven, as the Central Government may
nominate to represent that Government, the Railways, the coal industry, the mining industry, the
contractors, the workmen and any other interests which, in the opinion of the Central
Government, ought to be represented on the Central Board.
the categories specified in sub-section (2), the term of office and other conditions of service of,
the procedure to be followed in the discharge of their functions by, and the manner of filling
vacancies among, the members of the Central Board shall be such as may be prescribed:
Provided that the number of members nominated to represent the workmen shall not be less than
the number of members nominated to represent the principal employers and the contractors. 505
4. State Advisory Board.- (1) The State Government may constitute a board to be called the State
Advisory Contract Labour Board (hereinafter referred to as the State Board) to advise the State
Government on such matters arising out of the administration of this Act as may be referred to it
and to carry out other functions assigned to it under this Act.
(2) The State 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; (c) such number of members, not exceeding eleven but not less
than nine, as the State Government may nominate to represent that Government, the industry, the
contractors, the workmen and any other interests which, in the opinion of the State Government,
ought to be represented on the State Board.
the categories specified in sub-section (2), the term of office and other conditions of service of,
the procedure to be followed in the discharge of their functions by, and the manner of filling
vacancies among, the members of the State Board shall be such as may be prescribed: Provided
that the number of members nominated to represent the workmen shall not be less than the
number of members nominated to represent the principal employers and the contractors.
5. Power to constitute committees.- (1) The Central Board or the State Board, as the case may be,
may constitute such committees and for such purpose or purposes as it may think fit.
(2) The committe constituted under sub-section (1) shall meet at such times and places and shall
observe such rules of procedure in regard to the transaction of business at its meetings as may be
prescribed.
(3) The members of a committee shall be paid such fees and allowances for attending its
meetings as may be prescribed: Provided that no fees shall be payable to a member who is an
officer of Government or of any corporation established by any law for the time being in force.
506 CHAP REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LABOUR
CHAPTER III REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT
LABOUR
(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.
(2) Before issuing any notification under sub-section (1) in relation to an establishment, 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: (b) whether it is of perennial
nature, that is to say, it is of sufficient duration having regard to the nature of industry, trade,
business, manufacture or occupation carried on in that establishment; (c) whether it is done
ordinarily through regular workmen in that establishment or an establishment similar thereto; (d)
whether it is sufficient to employ considerable number of whole-time workmen. Explanation.--If
a question arises whether any process or operation or other work is of perennial nature, the
decision of the appropriate Government thereon shall be final. CHAP LICENSING OF
CONTRACTORS CHAPTER IV LICENSING OF CONTRACTORS
Licensing of contractors.
12. 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 labour except under and in accordance with
a licence issued in that behalf by the licensing officer.
Grant of licences.
licence 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 labour is to be employed and such other particulars as may be
prescribed.
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.
(3) A licence granted under this Chapter shall be valid for the period specified therein and may
be renewed from time to time for such period and on payment of such fees and on such
conditions as may be prescribed.
14. Revocation, suspension and amendment of licences.- (1) If the licensing officer is satisfied,
either on a reference made to him in this behalf or otherwise, that-- (a) a licence granted under
section 12 has been obtained by misrepresentation or suppression of any material fact, or (b) the
holder of a licence has, without reasonable cause, failed to comply with the conditions subject to
which the licence has been granted or has contravened any of the provisions of this Act or the
rules made thereunder, then, without prejudice to any other penalty to which the holder of the
licence may be liable under this Act, the licensing officer may, after giving 509 the holder of the
licence an opportunity of showing cause, revoke or suspend the licence or forfeit the sum, if any,
or any portion thereof deposited as security for the due performance of the conditions subject to
which the licence has been granted.
(2) Subject to any rules that may be made in this behalf, the licensing officer may vary or amend
a licence granted under section
Appeal.
15. Appeal.- (1) Any person aggrieved by an order made under section 7, section 8, section 12 or
section 14 may, within thirty days from the date on which the order is communicated to him,
prefer an appeal to an appellate officer who shall be a person nominated in this behalf by the
appropriate Government: Provided that the appellate officer may entertain the appeal after the
expiry of the said period of thirty days, if he is satisfied that the appellant was prevented by
sufficient cause from filing the appeal in time.
(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the
appellant an opportunity of being heard dispose of the appeal as expeditiously as possible. CHAP
WELFARE AND HEALTH OF CONTRACT LABOUR CHAPTER V WELFARE AND
HEALTH OF CONTRACT LABOUR
Canteens.
16. Canteens.- (1) The appropriate Government may make rules requiring that in every
establishment-- (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.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for-- (a)
the date by which the canteens shall be provided; (b) the number of canteens that shall be
provided, and the standards in respect of construction, accommodation, furniture and other
equipment of the canteens; and 510 (c) the foodstuffs which may be served therein and the
charges which may be made therefor.
Rest-rooms.
17. Rest-rooms.- (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, there shall be provided and maintained by the contractor for the use of the contract
labour such number of rest-rooms or such other suitable alternative accommodation within such
time as may be prescribed.
provided under sub-section (1) shall be sufficiently lighted and ventilated and shall be
maintained in a clean and comfortable condition.
Other facilities. 18. Other facilities.- It shall be the duty of every contractor employing contract
labour in connection with the work of an establishment to which this Act applies, to provide and
maintain-- (a) a sufficient supply of wholesome drinking water for the contract labour at
convenient places; (b) a sufficient number of latrines and urinals of the prescribed types so
situated as to be convenient and accessible to the contract labour in the establishment; and (c)
washing facilities.
First-aid facilities. 19. 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 labour is employed by him.
Liability of principal employer in certain cases.
20. Liability of principal employer in certain cases.- (1) If any amenity required to be provided
under section 16, section 17, section 18 or section 19 for the benefit of the contract labour
employed in an establishment is not provided by the contractor within the time prescribed
therefor, 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. 511
21. Responsibility for payment of wages.- (1) A contractor shall be responsible for payment of
wages to each worker employed by him as contract labour 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 authorised 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 to ensure the disbursement of wages in the presence of
the authorised 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, as the case may be, to the contract labour employed by the contractor
and 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. CHAP PENALTIES
AND PROCEDURF CHAPTER VI PENALTIES AND PROCEDURF
Obstructions.
22. Obstructions.- (1) Whoever obstructs an inspector in the discharge of his duties under this
Act or refuses or wilfully neglects to afford the inspector any reasonable facility for making any
inspection, examination, inquiry or investigation authorised by or under this Act in relation to an
establishment to which, or a contractor to whom, this Act applies, shall be punishable with
imprisonment for a term which may extend to three months, or with fine which may extend to
five hundred rupees, or with both.
(2) Whoever wilfully refuses to produce on the demand of an inspector any register or other
document kept in pursuance of this Act or prevents or attempts to prevent or does anything
which he has reason to believe is likely to prevent any person from appearing before or being
examined by an inspector acting in pursuance of his duties under this Act, shall be punishable
with imprisonment for a term which may extend to three months, or with fine which may extend
to five hundred rupees, or with both.
Other offences. 24. 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.
Offences by companies.
25. 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 the 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.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has
been committed by a company and it is proved that the offence has been committed with the
consent or connivance of, or that the commission of the offence is attributable to any neglect on
the part of any director, manager, managing agent or any other officer of the company, such
director, manager, managing agent or such other officer shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly. Explanation.--For
the purpose of this section-- (a) "company" means any body corporate and includes a firm or
other association of individuals; and (b) "director", in relation to a firm, means a partner in the
firm.
Cognizance of offences. 26. Cognizance of offences.- No court shall take cognizance of any
offence under this Act except on a complaint made by, or with the previous sanction in writing
of, the inspector and no court inferior to that of a Presidency Magistrate or a magistrate of the
first class shall try any offence punishable under this Act. 513
Inspecting staff.
28. 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-- (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.
give any information required by an inspector under sub-section (2) shall be 514 deemed to be
legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal
Code (45 of 1860).
(4) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), shall, so far as may be,
apply to any search or seizure under
sub-section (2) as they apply to any search or seizure made under the authority of a warrant
issued under section 98 of the said Code.
29. Registers and other records to be maintained.- (1) Every principal employer and every
contractor shall maintain such registers and records giving such particulars of contract labour
employed, the nature of work performed by the contract labour, the rates of wages paid to the
contract labour 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 labour is employed,
notices in the prescribed form containing particulars about the hours of work, nature of duty and
such other information as may be prescribed.
30. Effect of laws and agreements inconsistent with this Act.- (1) The provisions of this Act shall
have effect notwithstanding anything inconsistent therewith contained in any other law or in the
terms of any agreement or contract of service, or in any standing orders applicable to the
establishment whether made before or after the commencement of this Act: Provided that where
under any such agreement, contract of service or standing orders the contract labour employed in
the establishment are entitled to benefits in respect of any matter which are more favourable to
them than those to which they would be entitled under this Act, the contract labour shall continue
to be entitled to the more favourable benefits in respect of that matter, notwithstanding that they
receive benefits in respect of other matters under this Act.
(2) Nothing contained in this Act shall be construed as precluding any such contract labour from
entering into an agreement with the principal employer or the contractor, as the case may be, for
granting them rights or privileges in respect of any matter which are more favourable to them
than those to which they would be entitled under this Act.
Power to exempt in special cases. 31. Power to exempt in special cases.- The appropriate
Government may, in the case of an emergency, direct, by notification in the Official Gazette, that
subject to such conditions and restrictions, if any, and for such period or periods, as may be
specified in the notification, all or any of the provisions of this Act or the rules made thereunder
shall not apply to any establishment or class of establishments or any class of contractors. 515
32. Protection of action taken under this Act.- (1) No suit, prosecution or other legal proceedings
shall lie against any registering officer, licensing officer or any other Government servant or
against any member of the Central Board or the State Board, as the case may be, for anything
which is in good faith done or intended to be done in pursuance of this Act or any rule or order
made thereunder.
(2) No suit or other legal proceeding shall lie against the Government for any damage caused or
likely to be caused by anything which is in good faith done or intended to be done in pursuance
of this Act or any rule or order made thereunder.
Power to give directions. 33. 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.
Power to remove difficulties. 34. 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.
Power to make rules.
35. 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 as 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 this Act, the procedure to be followed at such
meetings including the quorum necessary for the transaction of business, and the fees and
allowances that may be paid to the members of a committee; (c) the manner in which
establishments may be registered under section 7, the levy of a fee therefor and the form of
certificate of registration; (d) the form of application for the grant or renewal of a licence under
section 13 and the particulars it may contain; (e) the manner in which an investigation is to be
made in respect of an application for the grant of a licence and the matters to be taken into
account in granting or refusing a licence; 516 (f) the form of a licence which may be granted or
renewed under section 12 and the conditions subject to which the licence may be granted or
renewed, the fees to be levied for the grant or renewal of a licence and the deposit of any sum as
security for the performance of such conditions; (g) the circumstances under which licences may
be varied or amended under section 14; (h) the form and manner in which appeals may be filed
under section 15 and the procedure to be followed by appellate officers in disposing of the
appeals; (i) the time within which facilities required by this Act to be provided and maintained
may be so provided by the contractor and in case of default on the part of the contractor, by the
principal employer; (j) the number and types of canteens, rest-rooms, latrines and urinals that
should be provided and maintained; (k) the type of equipment that should be provided in the
first-aid boxes; (l) the period within which wages payable to contract labour
should be paid by the contractor under sub-section (1) of section 21; (m) the form of registers
and records to be maintained by principal employers and contractors; (n) the submission of
returns, forms in which, and the authorities to which, such returns, may be submitted; (o) the
collection of any information or statistics in relation to contract labour; and (p) any other matter
which has to be, or may be, prescribed under this Act.
(3) Every rule made by the Central Government under this Act shall be laid as soon as may be
after it is made, before each House of Parliament while it is in session for a total period of thirty
days which may be comprised in one session or in two successive sessions, and if before the
expiry of the session in which it is so laid or the session immediately following, both Houses
agree in making any modification in the rule or both Houses agree that the rule should not be
made, the rule shall thereafter have effect only in such modified form or be of no effect, as the
case may be; so, however, that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that rule.