Contract Labour (Regulation and Abolition) Act 1970

CONTRACT LABOUR (REGULATION AND ABOLITION) ACT 1970

 by : DR. T.K. JAIN AFTERSCHO☺OL centre for social entrepreneurship sivakamu veterinary hospital road  bikaner 334001 rajasthan, india [email protected] mobile : 91+9414430763 5 DECEMBER 09

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What is it Under this law, contrat labour is regularised. Every worker where 20 or more contract labour are working, will have to get registered under the law. The conractor will also be registered. The government can order for  abolition of the contract system also and in that case, the workers can request for regular  appointment as per Article 226 of constitution. 5 DECEMBER 09

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Definitions 2(1)b: contract labout : appointment on contract basis 2(1)c : contractor : who makes contract to give results using contract labour  2(1)e: establishment : any place/ office / govt. Department / factory etc. 2(1)g : principal employer : owner / occupier / manager  2(1)i : workman : worker other than manager  5 DECEMBER 09

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Authorities under the law

Central advisory board state advisory board registering officer 

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Prohibition of contract labour  As per section 10, the central government can  prohibit employment of contract labour in some industry. When the government realises that in an industry, only regular employees should be there, it can order for prohibition of  contract labour. Example : on 1/2/75, the govt. Banned contract labour in coal mines. 5 DECEMBER 09

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Case study : vegolis Pvt ltd 1971

After this law, only central govt. Can abolish contract labour, not the tribunals.

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Case study : Gujarat Electricity Board 1995 All undertakings must identify contract labours and try to abolish contract labour as per sec. 10(2) a, and b. Govt. Should also try to appoint a committee to look into the matter and try to abolish contract labour. 5 DECEMBER 09

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Case study : Air India 1997

High cout can order industry to absorb employees as regular employees, after  abolition of contract labour under the act. Employees can also go to the court under  article 226 for regular employment after  contract labour has been abolished. 5 DECEMBER 09

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Case study : SAIL 2001

The court held that employer cannot be asked to absorb contract labour as regular employees. Thus the court overruled its judgement of Air  India case.

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Licensing

Every company that wants to appoint contract labour, will have to obtain licence for this. The licencing authority will investigate the matter  and then give licence. The licence will be issued only after investigation.

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Welfare of contract labour (sec. 16 to 21) Every company which employs contract labour  will have to provide them canteen, rest rooms, first aid failities, etc. If the workers dont get their wages, they can claim it from principal employer. The contractor will pay wages to worker before a representative of principal employer. 5 DECEMBER 09

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Penalties

Sec. 23 provides that if the act is violated, there may be penalty for 3 month imprisonment / Rs. 1000.

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Inspectors

Under the law, the inspectors are appointed, who will inspect factories etc every organisation will have to maintain records regarding appointment of contract labour as per sec. 29. 5 DECEMBER 09

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