Contract Labour (Abolition and Regulative Act, 1970)

Here’s a simple and clear explanation of the Contract Labour (Regulation and Abolition) Act,
1970 based on the content you provided:

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Introduction

The Contract Labour (Regulation and Abolition) Act, 1970 was passed to protect workers
hired through contractors. These workers often faced poor working conditions and no job
security.

The Act provides for:

 Setting up Central and State Advisory Boards to guide the government on issues
related to contract labour.
 Banning contract labour in certain jobs (like in mines, railways, FCI godowns, ports).
 Ensuring basic rights for contract workers where abolition is not possible.

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5.4.2. Objectives of the Act
1. To Abolish contract labour system wherever possible.
2. To improve conditions where it cannot be abolished.
3. To ensure proper wage payment and basic facilities like drinking water, toilets,
restrooms, etc.
4. To regulate the working conditions of contract labour so they are not treated unfairly
compared to regular workers.

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5.4.3. Scope of the Act [Section 1]
1. Title: Called Contract Labour (Regulation and Abolition) Act, 1970.
 2. Extent: Applies to the whole of India.
3. Commencement: Comes into force on dates notified by the Central Government.
4. Applicability:
o Applies to establishments with 20 or more contract workers in the last 12
months.
o Applies to contractors who employed 20 or more contract workers in the last
12 months.
o The Government may apply it to even smaller establishments (with less than
20 workers) after giving a 2-month notice.
5. Exemptions:
o Doesn’t apply to work of an intermittent or casual nature.
o The Appropriate Government decides whether work is intermittent or not, in
consultation with the Central or State Board.

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5.4.4. Key Definitions [Section 2]
1. Appropriate Government [2(a)]:
o Central Government: If the Central Govt is the authority under the Industrial
Disputes Act.
o State Government: In other cases.
2. Contract Labour [2(b)]: A person working through a contractor for a principal
employer, whether the employer knows it or not.
3. Contractor [2(c)]: A person who:
o Executes work through contract labour.
o Supplies workers for the job.
o Includes sub-contractors.
4. Controlled Industry [2(d)]: Any industry where the Union Government has control by
law.
5. Establishment [2(e)]:
o Any government office or local authority.
o Any place where industry, trade, business, or occupation is carried out.
6. Principal Employer [2(g)]:
o Govt. offices: Head of department.
o Factory: Owner or manager.
o Mine: Owner or mine manager.
o Others: Person responsible for supervision.
7. Wages [2(h)]: As per the Payment of Wages Act, 1936 – includes all earnings for
work done.
8. Workman [2(i)]: Any person doing manual, skilled, semi-skilled, technical, or clerical
work for wages.

❌ Does not include:

o Those in managerial/administrative roles.

 o Supervisors earning above ₹500/month or doing managerial functions.
o Out-workers (people working from home with materials provided by
employer).

5.4.5. Advisory Boards

✅ [Link].

Central Advisory Board [Section 3]

 Set up by the Central Government.

 Advises the Central Govt on matters related to this Act.

Composition:

1. Chairman – Appointed by Central Govt.

2. Chief Labour Commissioner (Central) – Ex-officio.
3. 11 to 17 other members, representing:
o Central Government
o Railways, coal, mining industries
o Contractors
o Workmen
o Other relevant interests

📌 Rule: Number of workmen representatives must not be less than that of

employers/contractors.

✅ [Link].

State Advisory Board [Section 4]

 Set up by the State Government.

 Advises the State Govt on matters related to contract labour.
Composition:

1. Chairman – Appointed by State Govt.

2. Labour Commissioner (or a nominated officer).
3. 9 to 11 members, representing:
o State Government
o Industry
o Contractors
o Workmen
o Other important interests

📌 Same rule: Workmen must have equal or more representatives than employers or
contractors.

✅ [Link].

Power to Constitute Committees

 The Central or State Board can form committees for any purpose they decide.
 Committees must follow rules for meetings and business.
 Fees and allowances are provided to committee members, except for government
officers who are not paid extra.

🧾 Summary
Aspect Key Points
Purpose To regulate and, where possible, abolish contract labour
Applies to Establishments/contractors with 20 or more workers
Not applicable Casual/intermittent work
Boards Central and State Advisory Boards guide the government
Protection Ensures fair wages, working conditions, and rights for contract labour

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this even clearer.

Here’s a simple and clear explanation of the remaining sections of the Contract Labour
(Regulation and Abolition) Act, 1970, covering registration, licensing, and prohibition of
contract labour:
📝
5.4.6. Registration of Establishments Employing Contract
Labour

📌 [Link].

Appointment of Registering Officers [Section 6]

 The Appropriate Government (Central or State) can appoint Registering Officers

(gazetted officers) through a notification.
 These officers are responsible for registering establishments that employ contract
labour.
 The government will define the area where each officer will operate.

📌 [Link].

Registration of Establishments [Section 7]

 Every Principal Employer (the main person responsible for the work) must register
the establishment if this Act applies to them.
 The application must be submitted within the time limit fixed by the government.
 If the application is delayed, the officer can still accept it if there’s a valid reason.
 Once the application is complete, the registering officer issues a Certificate of
Registration.

📌 [Link].

Revocation of Registration [Section 8]

 Registration can be cancelled if:

o It was obtained by false information or hiding facts.
o It has become useless or irrelevant.
 Before cancellation, the employer must be given a chance to explain, and the officer
must get approval from the government.

📌 [Link].

Effect of Non-Registration [Section 9]

  If an establishment:
o Fails to register within the time given, or
o Has had its registration revoked,

then the employer cannot hire contract labour.

📌 [Link].

Prohibition of Employment of Contract Labour [Section 10]

 The Appropriate Government can ban contract labour in any process or job after
consulting the Central/State Advisory Board.
 Before banning, it must consider:
1. Whether the job is essential to the main business.
2. Whether the work is permanent in nature.
3. Whether regular workers usually do such work.
4. Whether it justifies hiring full-time employees instead of contract labour.

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5.4.7. Licensing of Contractors

📌 [Link].

Appointment of Licensing Officers [Section 11]

 The Appropriate Government can appoint Licensing Officers to grant and manage
licenses for contractors.
 The area and powers of these officers will be defined in the government notification.

📌 [Link].

Licensing of Contractors [Section 12]

 From a date fixed by the government, no contractor can hire contract labour without a
valid license.
 The license will include rules and conditions about:
o Working hours
o Wages
o Basic facilities (water, toilets, restrooms, etc.)
  To get a license, the contractor must:
o Pay a license fee
o Deposit security money for following the license terms.

📌 [Link].

Grant of Licenses [Section 13]

 The application must be in the prescribed format and must include:

o Location of the worksite
o Type of work
o Number of workers to be employed
 The licensing officer may conduct an investigation before granting the license.
 The license is valid for a fixed time and can be renewed with fees and conditions.

📌 [Link].

Revocation, Suspension, or Amendment of License [Section 14]

 A license can be revoked or suspended if:

1. It was obtained through fraud or misrepresentation.
2. The contractor violated license conditions or Act rules.
 The contractor must be given an opportunity to explain before cancellation.
 The officer can also:

o Forfeit the security deposit

o Amend license terms, if needed

📌 [Link].

Appeal [Section 15]

 If anyone is unhappy with decisions under Section 7, 8, 12, or 14, they can file an
appeal within 30 days.
 The Appellate Officer is appointed by the government.
 The officer can accept a late appeal if there’s a valid reason.
 The appellate officer must hear the case and decide quickly.

✅ Summary Chart
 Topic Key Point
Registration (Sec Employers must register establishments employing contract labour.
6–9) Without registration, hiring contract workers is illegal.
Prohibition (Sec Govt. can ban contract labour in jobs that are permanent or regular in
10) nature.
Licensing (Sec Contractors must get licensed to hire contract labour. Includes fees and
11–13) conditions.
Revocation (Sec
License can be cancelled for fraud or rule violation.
14)
Appeal (Sec 15) Right to appeal against registration/licensing orders within 30 days.

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explanation for easy revision!

Here is a simple explanation of the Welfare and Health of Contract Labour under the
Contract Labour (Regulation and Abolition) Act – Sections 16 to 21:

[Link]. Canteens [Section 16]

 The government may make rules requiring canteens to be provided in establishments:

1. Where this Act applies,
2. Where contract labour work continues for a prescribed period, and
3. Where 100 or more contract labourers are usually employed.
 The rules can include:

o Deadline for setting up canteens,

o Number and quality of canteens (buildings, furniture, hygiene),
o Food items to be served and their prices.

[Link]. Rest-Rooms [Section 17]

 If contract labourers stay at night for work purposes:

1. In establishments covered by the Act,
2. Where work continues for a specified duration,

Then, the contractor must provide rest-rooms or suitable alternative accommodation.

 These rooms must be:

o Well-lit,
o Ventilated,
o Clean and comfortable.
[Link]. Other Facilities [Section 18]

 Every contractor must provide:

1. Safe drinking water at easy-to-reach places,
2. Enough toilets and urinals as per prescribed standards,
3. Adequate washing facilities.

[Link]. First-Aid Facilities [Section 19]

 A first-aid box with necessary supplies must be available at every location where
contract labour is employed.
 It must be easily accessible during all working hours.

[Link]. Liability of Principal Employer in Certain Cases [Section 20]

 If the contractor fails to provide any welfare facility (canteen, rest-room, water,
toilets, or first-aid):
o The principal employer must provide it within the prescribed time.
o The employer can then recover the cost from the contractor by:
 Deducting from payments due, or
 Treating it as a debt to be paid by the contractor.

[Link]. Responsibility for Payment of Wages [Section 21]

1. Contractor must pay full wages to contract labour within the prescribed time.
2. The principal employer must:
o Appoint an authorised representative to be present when wages are paid.
o The representative must verify and certify the wage payment.
3. Wages must be paid in the presence of this representative.
4. If the contractor fails to pay or underpays:
o The principal employer becomes liable to pay the full wages or the balance.
o The principal employer can then recover the amount from the contractor.

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