The goal of the Contract Labour Regulation and Abolition Act, 1970 is to prevent exploitation of contract labor and also to introduce better conditions of work. A workman is taken to be employed as Contract Labour when he is hired in connection with the work of an establishment by or by a Contractor. Contract workmen are indirect employees. Contract Labour differs from Direct Labour in terms of the employment relationship with the establishment and rule of wage payment. Contract Labour, by and big is not borne on payroll nor is paid directly. The Contract Workmen are hired, supervised and remunerated by the Contractor, who in turn, is remunerated by the Establishment hiring the services of the Contractor.
The Act implies to the Principal Employer of an Establishment and the Contractor wherein 20 or more workmen are employed or were employed even for one day during the preceding 12 months as Contract Labour. For the reason of calculating the number, contract labor employed for different purposes through different contractor has to be taken into consideration. This Act does not apply to the Establishments where the job is performed is of intermittent or seasonal nature. If a Principal Employer or the Contractor falls within the boundary of this Act then, such Principal Employer and the Contractor have to apply for Registration of the Establishment and License respectively.
The Act enjoins Joint and Several responsibilities on the Principal Employer and the Contractor. The Principal Employer should take responsibility that the Contractor does the following:
- Gives the wages as determined by the Government, if any, or;
- Give the wages as may be fixed by the Commissioner of Labour.
- In their absence pays fair wages to contract laborer.
- Provides the following facilities:
- Canteen (if employing 100 or more workmen in one place) and if the work is likely to last for 6 months or more.
- Restrooms where the workmen are required to halt at night and the work is likely to last for 3 months or more.
A requisite number of latrines and urinals – separate for men and women.
- Drinking water.
- First Aid.
- Maintains different registers and records, displays notices, abstracts of the Acts, Rules etc.
- Issues employment card to his workmen, etc.
Checklist For Principal Employer
- Registration of the Establishment.
- Display of the following notices value of wages, hours of work, wage period, date of payment of wages, date of payment of unpaid wages and name and address of the inspector having jurisdiction.
- Maintenance and Preservation of Register of Contractor.
- Filing of Return of Commencement and Completion of the Contract.
- Filing of Annual Return.
- Supervising the responsibilities of the Contractor to avoid enjoining of the liabilities.
- Ensure provision that facilities of Canteen, Drinking Water, Washing, Rest Room, Latrines and Urinals, First Aid, Crche are provided by the Contractor.
Checklist For Contractor
- Renewal of the License.
- Maintenance and Preservation of Register of Persons employed Muster Roll, Register of wages, Register of Fines, Register of Deductions for damages or loss, Register of advances, Register of overtime.
- Display of Notice rate of wages, hours of work, wage period, date of payment of wages, date of payment of unpaid wages and name and address of the inspector having jurisdiction.
- Provide facilities of Canteen, Drinking Water, Washing, Rest Room, Latrines and Urinals, First Aid, Crche.
- Employment card.
- Service Certificates.
- Half yearly return.