ABSTRACT OF THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

An Act to regulate the employment of contract labour in certain establishments LICENSING OF CONTRACTORS:
and to provide for its abolition in certain circumstances and for matters
connected therewith. employer shall undertake any work through Contract Labour except under the
license issued by the Licensing Officer. Such license will contain conditions as to
APPLICABILITY: hours of work, fixation of wages and other essential amenities for the contract
employees. Such license shall be valid for a specific period where after the
This act applies- employer may apply for renewal [Sec 12 (1) (2)].
 To every establishment in which 20 or more workmen are employed or WELFARE, SAFETY AND HEALTH MEASURES:
were employed on any day of the preceding 12 months as contract labour
[Sec 1 (4) (a)] Every principal employer governed by this act is responsible for maintaining such
 To every contractor who employs or who employed on any day of standards of welfare, safety and health of contract labour
preceding 12 months 20 or more workmen [Sec 1 (4) (a)]
as prescribed in details in this Act [Sec 16 to 21].
It shall not apply to establishments in which work only of an intermittent or casual
REGISTERS AND RECORDS:
nature is performed [Sec 1 (5) (a)]. If question arises whether work performed in
an establishment is of an intermittent or casual nature, the appropriate Registers of contractors: Every principal employer shall maintain in respect of
Government shall decide that question after consultation with the Central Board each registered establishment a register of contractors in Form XII [ Central Rule
or as the case may be, a State Board, and its decision shall be final (Sec 1 (5) (b)]. 74].
For this purpose of this subsection, work performed in an establishment shall not EMPLOYMENT CARD:
be deemed to be an intermittent nature:
i) Every contractor shall issue an employment card in Form XIV to each
 If it was performed for more than 120 days in the preceding 12 months; worker within 03 days of employment of the workers;
or ii) The card shall be maintained up to date and any change in particulars
 If it is of a seasonal character and is performed for more than 60 days in shall entered therein [Central Rule 76]
a year.
SERVICE CERTIFICATE:
ADMINISTRATION:
On termination of employment for any reason whatsoever the contractor shall
The act administered by the Central or State Advisory Boards, as the case may be, issue Service Certificate to the workman whose service have been terminated.
whereon the Labour Commissioner will be a member [Sec-3 & 4] [Central Rule 78 (1) (a) i) (ii) (iii) (b) (c) (d)]
WHO IS PRINCIPAL EMPLOYER? Muster Roll, Wages Registers, Deduction Register and Overtime Register
The head of any office or department of Government or local authority or, in a a) Maintain a Muster Roll and Registers of Wages in Form D & B.
factory, the owner or in any other establishment, any person responsible for b) maintain a Register of Deduction for damage or loss, Register of Fines and
supervision sand control, is the Principal Employer under the Act [Sec 2 (g)]. Register of Advances in Form C.
c) maintain a Register of Overtime in Form B.
WAGES
d) Every contractor shall, where the wage period is one week or more, issue
For the purpose of this Act, the expression ‘wages’ shall have the same meaning wage slips in Form XIX, to the workmen
assigned to it under the Payment of Wages Act,1936; [Sec 2 (h)] e) Every contractor shall obtain the signature or thumb impression of the
worker concerned against the entries relating to him on the Register of
WHO IS WORKMEN? Wages or Muster Roll-cum-Wages Register.
Workmen means any person employed in or in connection with a work of skilled, f) In respect of establishments which are governed by the Payment of
semi-skilled or unskilled, manual, supervisory, technical or clerical nature for hire Wages Act, 1936 (4 of 1936) and the rules made thereunder, or Minimum
or reward, whether terms of employment are express or implied. The expression Wages Act, 1948 (11 of 1948) or the rules made thereunder, the following
’workmen’ does not include: registers and records required to be maintained by a contractor-
i) Muster Roll;
a) Any person employed mainly in a managerial or administrative capacity; ii) Register of Wages;
or iii) Register of Deductions;
b) any person being employed in a supervisory capacity but draw wages iv) Register of Overtime;
exceeding Rs. 500/- per mensem or exercise either by the nature of duties v) Register of Fines;
attached to his office or by reason of the powers vested to him, functions vi) Register of Advances;
mainly of a managerial nature; or vii) Wage slip;
c) a person who is out-worker, that is to say, a person to whom any articles
or materials are given out by on behalf of the principal employer to be DISPLAY OF THE ACT:
made up, cleaned, washed, altered, ornamented, finished, repaired, a) Every contractor shall display an abstract of the Act and rules in English
adapted or otherwise processed for sale for the purpose of the trade or and Hindi and in the language spoken by the majority of workers in such
business of principal employer and process is to be carried out either in form as may be approved by the Chief Labour Commissioner (Central).
the home of the out-workers or in some other premises, not being [Central Rule 79].
premises under the control and management of the principal employer b) Notices showing the rates of wages, hours of work, wage period, dates of
[Sec 2 (i) (A),(B) & (C)]. payment of wages, names and addresses of the Inspectors having
CONTRACTOR TO MAKE PAYMENT OF WAGES: jurisdiction, and date of payment of unpaid wages, shall be displayed in
English and in Hindi and in the local language understood by the majority
The contractor shall be responsible for the payment of wages to each contract of the workman in conspicuous places at the establishment and the work-
worker employed by him, as contract labour and such wages shall be paid before site by the principal employer or the contractor. [Central Rule 81 (1) (i)]
the expiry of such period as may be prescribed. [Sec 21 (1)]
RETURN:
THE OBLIGATIONS OF THE PRINCIPAL EMPLOYER:
a) Every contractor shall send half yearly return in Form XXIV (in duplicate)
In the case Contractor fails to make payment of wages within the prescribed so as to reach the Licensing Officer concerned not later than 30 days from
period or makes short payment, then the principal employer shall be liable to the close of the half year. (Central Rule 82 (1)]
make payment of wages in full or the unpaid balance due, [Sec 21 (4)] b) Every principal employer of a registered establishment shall send
annually a return in Form XXV (in duplicate) so as to reach the Registering
REGISTRATION OF ESTABLISHMENT:
Officer concerned not later than the 15th February following the end of
Every principal employer of an establishment shall, under this Act, make an the year to which it relates. {Central Rule 82 (2)]
application to the Registering Officer in Form I for registration of his
PENALTIES AND PROCEDURES:
establishment. If the establishment fails to so register, it prohibits to employ
contract labour after the expiry of the period permitted for making the Contravention of provisions of the Act will attract punishment by way of
application [Sec 7(1) & (2)]. imprisonment or fine or both. [Sec22 to 27]