Contract labour mgmt and compliance of law

Clr mgmt

1. PRESENTATION ON
CONTRACT
LABOUR(Regulation
& Abolition) Act 1970
By
L. Thirupathi, Dy.PM

2. •Object
•Applicability
•Registration of Establishment
•Revocation of Registration
•Prohibition of Employment of Contract Labour
•Licensing of Contractor
•Revocation or Suspension & Amendment of Licences
•Welfare Measures to be taken by the Contractor
•Liability of Principal Employer
•Responsibility of Contractor for Payment of Wages
•Laws, Agreement or Standing Orders inconsistent with Act -Not
permissible
•Registers of Contractor
•Muster Roll, Wages Register, Deduction Register & Overtime Register
by Contractor
•Returns
•Penalties

3. OBJECT:
•Toregulatetheemploymentofcontractlabour
incertainestablishmentsandtoprovideforits
abolitionincertaincircumstancesandfor
mattersconnectedtherewith.

4. APPLICABILITY:
•Everyestablishmentinwhich20ormore
workmenareemployedorwereemployedon
anydayofthepreceding12monthsascontract
labour.
•Everycontractorwhoemploysorwho
employedonanydayoftheprecedingtwelve
months20ormoreworkmen.
(Sec.1)

5. Registration of Establishment
•Principalemployeremploying20ormoreworkers
throughthecontractororthecontractor(s)on
depositofrequiredfeeinForm1.
( Sec.7)

6. Revocation of Registration
•Whenobtainedbymisrepresentationor
suppressionofmaterialfactsetc.after
opportunitytothePrincipalemployer
(Sec.9)

7. Prohibition of Employment of
Contract Labour
•OnlybytheappropriateGovernmentthrough
issueofnotificationafterconsultationwiththe
Board(andnotCourts)canordertheprohibition
ofemploymentofcontractlabour.
(Sec.10)

8. Licensing of Contractor
•Engaging20ormorethan20workersandon
depositofrequiredfeeinForm.IV
•Validforspecifiedperiod.
(Sec.12 Rule 21)

9. Revocation or Suspension &
Amendment of Licences
•Whenobtainedbymisrepresentationor
suppressionofmaterialfacts.
•Failureofthecontractortocomplywiththe
conditionsorcontraventionofActortheRules.
(Sec.14)

10. Welfare measure to be taken by
the Contractor
•Contractlaboureitheronehundredormoreemployedbya
contractorforoneormorecanteensshallbeprovidedand
maintained.
•FirstAidfacilities.
•Numberofrest-roomsasrequiredundertheAct.
•Drinkingwater,latrinesandwashingfacilities.
Secs.16 & 17.

11. Liability of Principal Employer
•To ensure provision for canteen rest-rooms, sufficient of supply of drinking
water, latrines and urinals, washing facilities.
•Principal employer entitled to recover from the contractor for providing such
amenities or to make deductions from amount payable.
Sec. 20.
Responsibility of Contractor for
Payment of Wages
•To pay timely and to ensure the disbursement of wages in the presence of the
authorised representative of the principal employer.
•Rate of wages not less than the rates as fixed or prevailing in such
employment as fixed by agreement.
Sec. 21, Rule 25.

12. Laws, Agreement or Standing Orders
inconsistent with the Act -Not
Permissible
Unlesstheprivilegesinthecontractbetweenthepartiesare
morefavourablethantheprescribedintheAct,such
contractwillbeinvalidandtheworkerswillcontinuetoget
morefavourablebenefits.
Sec.30.

13. Registers of Contractor
•Principal employer
–To maintain a register of contractors in respect of every establishment in
Form-XII
Rule 74.
•Contractor
–To maintain a register of workers for each registered establishment
in Form -XIII
–To issue an employment card to each worker in Form-XIV
–To issue service certificate to every workman on his termination in
Form-XV
Rules 75,76 and 77.

14. Muster Roll, Wages Register, Deduction Register
and Overtime Register by Contractor
•EveryContractorshall
•MaintainMusterRollandaRegisterofWagesinForm-XVIandForm-XVII
respectivelywhencombined.
•Registerofwage-cum-MusterRollinForm-XVIIwherethewageperiodisa
fortnightorless.
•MaintainaRegisterofDeductionsfordamageorloss,RegisterorFinesand
RegisterofAdvancesinForm-XX,Form-XXIandForm-XXII.
•MaintainaRegisterofOvertimeinForm-XXIII.
•ToissuewageslipsinForm-XIX,totheworkmenatleastadaypriortothe
disbursementofwages
•Obtainthesignatureorthumbimpressionoftheworkerconcernedagainstthe
entriesrelatingtohimontheRegisterofWagesorMusterRoll-cum-Wages
Register.
•WhencoveredbyPaymentofWagesAct,registerandrecordstobe
maintainedundertheserules-
•MusterRoll,•RegisterofWages,•RegisterofDeductions,•RegisterofOvertime,
•RegisterofFines,•RegisterofAdvances,•Wageslip.
Rule 79

15. •to display an abstract of the Act and Rules in English and Hindi and in
the language spoken by the majority of workers in such forms as may
be approved by appropriate authority.
Rule 80.
•Todisplaynoticesshowingratesofwages,hoursofwork,wage
period,datesofpayment,namesandaddressesoftheInspectorandto
sendcopytotheInspectorandanychangeforthwith.
Rule 81.
Returns
ContractortosendhalfyearlyreturninForm-XXIVinduplicate
within30daysPrincipalemployertosendannualreturninForm-XXV
induplicatebefore15thFeb.followingtheendoftheconcernedyear.
Rule 82.

16. PenaltiesSectionOffence Punishment
Sec. 22ObstructionsFor obstructing the Inspector or failing
to produce registers etc. 3 months
Imprisonment or fine upto Rs.500, or
both.
Sec. 23ViolationFor Violation of the Provisions of Act
or the Rules. Imprisonment of 3
months or fine upto Rs.1000. On
continuing contravention, additional
fine upto Rs.100 per day.