INSTITUTE OF COMMERCE

AND MANAGEMENT

SUBMITTED TO SUBMITTED BY
MISS. SHILPY MAM NEHA RANA
NIKITA NATH
MBA III SEM
 DEFINITIONS
Contract Labour
A workman is deemed to be employed as Contract Labour when he is hired in
connection with the work of an establishment by or through a Contractor.

Contractor
A person who undertakes to produce a given result for the estt., other than mere supply
of goods or articles of manufacture to such estt., thro’ contract labour, or who merely
supplies contract labour for any work of the estt., & includes a sub-contractor.(Sec.2c)

Principal employer
In relation to any Govt. Office or Dept. or Local Authority, head of that Office/Dept.
orsuch other Officer as the Govt. or the LocalAuthority may specify in this behalf.
In case of factory, the owner or occupier ofthe factory, & manager of the factory, if
any so named under the Factories Act, 1948.
In case of mine, owner or agent of mine & themanager of the mine, if any so
named.
In any other estt., any person responsible for the supervision & control of the estt.
Why Contract Labour
According to an ILO Report:
 Production at lowest cost

 Benefits of Fringe Benefits like leave wages,

E.S.I. or PF, bonus and other.
 General reduction in overheads and administrative
burden of maintaining an establishment
PROBLEMS
 Inferior
 Bad working conditions
 Casual nature of employment
 Lack of job security
 Poor economic condition
 Exploitation
 No rights
 Poor wages
 Long working hours
 CONTRACT LABOUR
(REGULATION AND
ABOLITION)
]

ACT, 1970
OBJECTIVE
REGULATE THE EMPLOYMENT
OF CONTRACT LABOUR IN
CERTAIN ESTABLISHMENTS

PROVIDE FOR ITS ABOLITION

IN CERTAIN CIRCUMSTANCES
& FOR MATTERS CONNECTED
THEREWITH
APPLICABILITY
 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.
 It does not apply to establishments where the work

performed is of intermittent or seasonal nature.

 MAIN PROVISIONS
 APPROPRIATE GOVERNMENT
 THE CENTRAL AND STATE ADVISORY BOARDS
 REGISTRATION AND LICENSING
 WELFARE AND HEALTH
 PAYMENT OF WAGES
 PENAL PROVISIONS
 INSPECTING STAFF
 EXEMPTION
 ENFORCEMENT
APPROPRIATE GOVERNMENT :
The appropriate Government, in respect of an establishment
under the Contract Labour (Regulation and Abolition) Act, 1970
is the same as that in the Industrial Disputes Act, 1947.

THE CENTRAL AND STATE ADVISORY BOARD:

The Central Government and State Governments are required to
set up Central and State Advisory Contract Labour Boards to
advise the respective Governments on matters arising out of the
administration of the Act as are referred to them. The Boards are
authorised to constitute Committees.
REGISTRATION BY PRINCIPAL EMPLOYER:
Every principal employer who wishes to employ contract
labour has to get the establishment registered with the
Registration Officer appointed by the govt.

LICENSING OF CONTRACTORS:
Every contractorhas to obtain a license for employing contract
labour from the licensing officer appointed by govt. The
licence granted is subject to conditions relating to hours of
work, fixation of wages and other essential amenities in
respect of contract as prescribed in the rules.
WELFARE & HEALTH OF CONTRACT LABOUR:

 Canteens (more than 100 workers)

 Rest Rooms
 Other Facilities – Drinking Water, Latrines & Urinal, Washing
Facilities
 First Aid Facilities
 Liability of Principal Employer in certain cases

PAYMENT OF WAGES:

The contractor is required to pay regular wages to his workers in the presence
of the authorised representative of the Principal Employer.
PENAL PROVISIONS:
For contravention of the provisions of the Act or any
rules made thereunder, the punishment is imprisonment
for a maximum term upto 3 months and a fine upto a
maximum of Rs.1000/-.

INSPECTING STAFF:
The Act makes provisions for the appointment of
Inspecting staff, for maintenance of registers and
records and making of Rules for carrying out the
purpose of the Act.
EXEMPTION:
The 'appropriate government' is empowered to grant exemption
to any establishment or class of establishment or any class of
contractors from applicability of the provisions of the Act or
the rules made thereunder on such conditions and restrictions
as may be prescribed.

ENFORCEMENT:
In the Central sphere, the Central Industrial Relations
Machinery (CIRM) has been entrusted with the responsibility
of enforcing the provisions of the Act and the rules made
thereunder, through Inspectors, Licensing Officers,
Registering Officers and Appellate Authorities appointed
under the Act.
ENFORCEMENT OF CONTRACT LABOUR
(REGULATION AND ABOLITION) ACT, 1970
S.No. Item 2003-04 2004-05 2005-06

1. No. of Registration Certificates issued to 720 590 675

principal employers.

2. No. of Licences issued to contractors 6788 7277 6973

3. No. of Inspections conducted. 4991 4540 5663

4. No. of Irregularities detected. 71632 59301 59298

5. No. of prosecutions launched. 3896 3356 2914

6. No. of convictions. 2072 2018 1000

7. No. of contract labourers covered by 853690 968792 971590
licences
8. No. of Licences revoked/ cancelled. 4014 6601 7578
9. No. of registration certificates revoked. 52 08 211
CURRENT FACTS AND FIGURES

 According some stats about 80 million people are on contract

jobs and only 300,000 in the organized sector.
Prohibition of Contract Labour
in Employments
 Coal mines – (raising or raising cum-piling of coal)
 Building – (sweeping, cleaning, dusting)
 Iron ore mines
 Limestone and manganese mines
 Coal washeries
 Chromite mines
 Magnesite mines
 Gypsum mines
 Mica mines
 Fire-clay mines
CONCLUSION

The Government of India has been deeply concerned about the

exploitation of workers under the contract labour system.
Recognising the need for protecting the interest of contract
labour, the Contract Labour (Regulation and Abolition) Act,
1970 was brought on
THANK YOU