THE CONTRACT LABOUR

(Regulations and And Abolition )

ACT, 1970
OBJECT:
• To regulate the employment of contract
labour in certain
• establishments and to provide for its abolition
in certain circumstances and for
• matters connected therewith.
APPLICABILITY:

It extends to the whole of India and applies to :

• Every establishment in which twenty or more
persons are employed or were employed on
any day of the preceding twelve months as
contract labour
• To every contractor who employs or who employed on
any day of the preceding twelve months twenty or
more workmen. The appropriate govt. can extend the
provisions of the Act to any establishments or
contractor employing less than the number specified
above, by notification. It shall not apply to
establishments in which work is of intermittent or
casual nature.
WORKMEN:

Any person employed in or in connection with the work of any

establishment to do any skilled or semi-skilled or unskilled, manual,
supervisory, technical or clerical work for hire or reward whether
the terms of the employment be expressed or implied but does not
include:

a. Persons employed mainly in a managerial or administrative capacity

b. Persons being employed in a supervisory capacity draws wages

exceeding Rs.500/ per month.

c. An out worker.[Section 2 (i)]

ADVISORY BOARDS:
• The central govt. and the state govt. have constituted a
Central Advisory Board and a State Advisory Contract Labour
Board respectivelyto advise the govts. On such matters arising
out of the administration of the Act.(Section 3 & 4 read with
rule 3 to 16 of the Kerala Contract Labour (Regulationand
Abolition) Rule 1974.
• REGISTRATION OF ESTABLISHMENT:

Every principal employer of anestablishment shall make an

application for registration in triplicate in Form No.I to the
registering officer of the area along with a treasury receipt
showing payment of the prescribed fee. If the application
for registration is complete in all respects, the registering
officer shall register the establishment subject to rule 17 to
20 and issue a registration certificate in Form-II (Section 7
to 9 read with rule 17 to 20)
• PROHIBITION OF EMPLOYMENT OF CONTRACT LABOUR:
The appropriate govt. is empowered to prohibit
employment of contract labour in any process of operation
or other work in any establishment after consultation with
the Advisory Board. (Section-10)
• LICENSING OF CONTRACTORS :
No contractor shall undertake or excite any work through
contract labour except under and in accordance with a
licence issued by the licensing officer (Section-12)
• GRANT OF LICENCES:

Every contractor shall make an application for the grant of a

licence in triplicate in Form No.IV along with a treasury receipt
showing the prescribed fee to the licensing officer. The application
shall also be accompanied by a certificate by the principle employer
in Form-V. The licensing officer, after making necessary
investigations subject to the provisions, grant a license in Form VI

• SECURITY:

The contractor shall deposit a security amount at the rate of Rs.20

for each of the workman to be employed as a contract labour at the
time of making application for license. (Rule 24)
• RENEWAL OF LICENCE:

Every contractor shall make an application for the renewal of

licence in Form VII in triplicate alongwith the required fee not
less than thirty days before the expiry date. If the renewal
application is not submitted within the time specified the
contractor shall be liable to pay a fee of 25% in excess of the
fee ordinary Payable. A duplicate ertificate shall be issued on
payment of Rs. 5/- (Section 13, 14 read with Rule 21 to 32)
REGISTRATION FEE:
Number of workmen proposed to be employed on
contract on any day.
(SRO. No. 973/98 dated 7.11.98)
Rs.
a. Up to 50 - 1000
b. 51 to 100 - 2000
c. 01 to 200 - 3000
d. 201 to 300 - 4000
e. 301 to 500 - 6000
f .exceeds - 10,000
LICENSING FEE/RENEWAL FEE :

Number of workmen employed by the contractor on any day.

a. 20 to 50 - 750
b. 51 to 100 - 1500
c. 101 to 200 - 2500
d. 201 to 300 - 4000
e. 301 to 500 - 6000
f. exceeds 500 - 10,000
APPEAL:
Any persons aggrieved by an order of the registering
officer/Licensing officer may within 30 days from the date of
communication of the order prefer an appeal to the appellate
officer. (Section-15 read with Rule 33 to 39)
• WELFARE AND HEALTH:
Every contractor shall provide the welfare and health amenities
such as canteens, rest rooms, drinking water, latrines and urianals,
first-aid etc. to the contract workers employed, in accordance with
Section-16 to 19 read with Rule 40 to 62.
• LIABILITY OF PRINICPAL EMPLOYER:
If any contractor does not provide the amenities prescribed above
within 7 days from the commencement of the employment, the
principle employer shall make providions to provide it within 7
days. (Section 20 read with Rule 40)
• PAYMENT OF WAGES:
The contractor shall be responsible for the payment of
wages. The payment shall be made direct or to an
authorised person on a working day at the work
premise in the presence of an authorised
representative of the principle employer. The principle
employer shall ensure the presence of his authorised
representative at the place and disbursement of wages.
 REGISTERS AND RECORDS:

Every Principal employer shall maintain:

a. A register of contrtactors in Form No.12

Every contractor shall maintain:

a. a register of contract labours in Form No. 13

b. a muster-roll in Form-16.

c. A register of wages in Form 17

d. A register of deductions, fines etc. inForm 20

e. a register of fines in Form 21

f. a register of advances in Form 22

g. a register of overtime in Form 23

• ANNUAL RETURNS:
Contractor shall send half yearly return in Form 24 in duplicate to
the licensing officer not less than thirity days from the colse of the
half year. Principal employer shall send Annual Return in Form 25 in
duplicate to the registering officer not later than the 15th February
of the suceeding year
• PENALITY:
The offences relating to the obstruction to the inspector and
refuses to produces the register and records etc. shall be
punishable with imprisonment for
a term which may extend to threemonths or with fine which may
extend to Rs. 500/- or with both.
 AUTHORITIES APPOINTED UNDER THE ACT:
1. a. Labour Comissioner
b. Additional Labour Commissioner (IR and E)
c. Additional Labour Commissioner, Kozhikode
d. Joint Labour Commissioner (P)
e. Deputy Labour Commissioner (HQ)
f. Regional Joint Labour Commissioners
g. Secretary, State Advisory Contract Labour Board.
h. District Labour Officers (E)
i. Asst. Labour Officers-Grade II
2. REGISTERING OFFICERS (under Section-6)
District Labour Officers (E)
3. Licensing Officer (under Sec.II)
District Labour Officers (E)
4. APPELATE AUTHORITY (under Section-12 (2-a)
a. Additonal Labour Commissioner, Kozikode
b. Regional Joint Labour Commisioners