CONTRACT LABOUR (REGULATIONS & ABOLITIONS) ACT, 1970

APPLICABILITY

The Act applies to every establishment where the Contractor employs twenty or more contract employees. It also applies to the establishments in which the work is carried only on intermittent or casual nature or the seasonal character work exceeding 60 days.

ELIGIBILITY OF EMPLOYEES

a.    The contract workman/employee means any person employed in or in connection with the work of an establishment to do any skilled, semi-skilled or unskilled manual, supervisory, technical or clerical work for hire or reward but does not include a person employed in a managerial or administrative capacity.

b.    They are entitled for the benefits either directly or through contractor for statutory benefits and protection.

BENEFITS UNDER THE ACT

a.    The contractor is required to provide canteens, rest-rooms, latrines, urinals, drinking water, washing facilities and first aid boxes for the use of contract labour.

b.    He is also required to make prompt payment of wages to contract labour.

c.    Principal employer is liable to pay wages and provide other amenities, if the contractor fails to do so.

OTHER IMPORTANT ISSUES

The contravention of the provisions regarding the employment of contract labour is a contravention under the Act for which the contractor will be liable to prosecutions and fines. The offences under the Act are cognizable offences.

PENALTIES FOR NON-COMPLIANCE

The contractor, for contravening any provisions, can be prosecuted under the Act and can be levied a fine. Contravention of any provisions of the Act shall be punishable with imprisonment to the extent of 3 months or with fine which may extend to Rs. 1,000/- or with both and in the case of continuing contravention, with an additional fine which may extend to Rs. 100/- per day.

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