Introduction
The Contract Labour Act, 1970, is used to employ laborers through a contract for a certain period. It is the responsibility of the contractor to hire, supervise and remunerate the laborers. The core objective of this act was to prevent the exploitation of contract workers and also ensure proper and better working conditions. This Act also regulates the employment of contract labour in various industries in India. Contract workers are hired through a contractor, often on a daily wage basis, for specific periods.
The Contract labour Act aims to address the poor conditions and job insecurity that contract workers often face, ensuring they are treated fairly and have basic rights at the workplace.
Applicability of the Act
- Applies to those establishments in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour.
- Applies to the contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.
Non-Applicability of the Act
- This CLRA act is not applicable to an establishment which acts an intermittent or casual nature of work. Hence, if made applicable then it will be decided after consultation with the appropriate Central Board/ State Board.
Essential Registration/Licensing Provisions of the Act
- Registration of Establishments: Every employer which proposes to employ contract labour is required to obtain Contract labour Licence of registration from the appropriate government as a principal employer.
- Licensing of Contractors: Every Contractor who proposes to employ twenty or more contract labour are required to obtain a license The license must be obtained from the appropriate government authority and which can be revoked if violated.
- Wages and Payments: Every contractor is responsible for paying workers their wages on time. If they fail to do so, the principal employer must step in and ensure payment is made on timely basis to each contract worker.
- Penalty Provisions: Any Contractor found violating the provisions of this act, can face fines which upto Rs.1,000/- or imprisonment for up to three months. Even employers can be held liable if they fail to comply with the rules mentioned in the Act.
Key Objectives of the Act
- Prevention of exploitation: To safeguard contract workers from exploitation by contractors or employers.
- Ensure proper working conditions: To ensure that contract labourers have access to basic amenities like canteens, restrooms, and drinking water.
- Regulation of advisory boards: The establishment of advisory boards at the central and state levels to provide guidance and advice on the Act’s implementation.
- Registration and licensing: To ensure proper registration of establishments and licensing of contractors employing contract labour.
Conclusion:
The Contract labour law plays a crucial role in safeguarding the rights and welfare of contract workers in India. While the Act provides a comprehensive framework for the regulation and abolition of contract labour, ongoing amendments and state-specific modifications continue to shape its implementation. Employers and contractors must stay informed about these developments to ensure compliance and uphold the rights of contract workers.
