Contract Labour Act, 1970

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Contract labour (regulation and Abolition) Act, 1970

The main Object of the Contract Labour (Regulation and Abolition) Act, 1970 is preventing the contract labour’s exploitation. Also, introduction to better conditions of work for the labour. The Contract workmen are the indirect employees. When a workman is hired in connection with the work of an establishment by or through a Contractor, then he’s deemed to be employed as Contract Labour. In terms of the relationship of employment with the establishment of the Contract Labour differs from Direct Labour. And also, the method of wage payment. Contract Labour, by and large, is not payable directly nor is borne on the payroll. The Contractor hires, supervises and remunerates the Contract Workmen. While the Establishment hiring the services of the Contractor remunerates the Contractors.

Registration and Licensing

This Act applies to the Principal Employer of an Establishment. Also, where in 20 or more workmen are employed or was employed by the Contractor. Whether even it was for one day during preceding 12 months as Contract Labour. Contract labour’s employment for different purposes through the different contractor considers for the purpose of calculating the number. Although, this Act is not applicable to the Establishments, where intermittent or seasonal nature of work’s performance takes place. While, if a Principal Employer or the Contractor falls within the vicinity of this Act. Then, application for Registration of the Establishment and License respectively is mandatory by such Principal Employer and the Contractor.

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