MIR CLR&a Act-labour

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Contract Labor (Regulation &Contract Labor (Regulation &

Abolition) Act, 1970Abolition) Act, 1970

Presenter:Presenter: ArpitArpit PanchalPanchal(11065)(11065)

Guide: Prof Guide: Prof JagdishJagdish BhattBhatt

19 January 2012 1



Definitions:y Contract Labour: workman shall be deemed to be

employed as contract labour in or in connection with

the work of an establishment when he is hired in or inconnection with such work by or through a contractor, with or without knowledge of principal employer.

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Contractor:

y A person who undertakes to produce a given result forthe establishment, other than mere supply of goods orarticles of manufacture to such establishment,through contract labours who supplies contract labour

for any work of the establishment and includes a subcontractor

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y Establishment: means.

y A ny office or department of the government or a local

authority, ory A ny place where any industry, trade, business,

manufacturer or occupation is is carried on;

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y Principal employ er:

y In govt: Head of Depty In Factory: owner

y In Mine: Manager

y A ny other establishment: supervision related person

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y A ppropriate Govt - Central or State

y Controlled Industry - Control by Union for Public

interesty Contract labour - if hired for work of an Estb. through

a contractor, with or without the knowledge of theprincipal employer

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Purpose of this Act:

These workers are millions in number

-generally belong to the unorganised sector.They have very little bargaining power, have little or no social security

and are often engaged in hazardous occupations endangering their health and

safety.

They are often denied minimum wages and have little or no security of

employment.

On the other hand, reasons like sporadic nature of work, difficulty in

ensuring closer supervision by the employer or cost effectiveness, flexibility in

manpower deployment, concentration in core competencies etc. justify the

system of contract labour.

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What the act dealsy Regulates the employment of contract labour in

certain establishments and to provide for its abolition

in certain circumstances and for matters connectedtherewith.

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The Applicabilityy to every establishment in which 20 or more

workmen are employed or were employed on

any day of the preceding 12 months as contractlabour

y to every contractor who employees or whoemployed on any day of the preceding 12 months

20 or more workmeny In case of West Bengal, the number is 10

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And the non applicabilityy The act is not applicable in an Estb. in which work only

of an intermittent or casual nature is performed

yEstablishment includes any office or department of Govt.

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When not intermittent (??)y if performed for more than 120 days in the preceding 12

months, or

yif seasonal character and is performed for more than60 in a year

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y Enforcement Administrativ e Advisory Agency

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THE ADVISORY BOARDSy Central Advisory board:

y Chairman to be appointed by central government

y The chief labour commissionery Government representatives (between 11 to 17)

y State advisory board

y Chairman to be appointed by state governmenty The chief labour commissioner

y Government representatives (between 9 to 11)

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Registration of Estbs. Employing

CONTRACT LABOUR

y D/ ALC (LEO) the registering officers

y Every principal employer make an application to

the registering officer in the prescribed mannery the registering officer issue a certificate of regn. if

the application is complete

y Revocation of registration

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Prohibition of employment of contract labor

y the Govt. consulting with the A dvisory Board canprohibit employment of contract labour in any

process, operation or other work in any estb. A

fterconsidering conditions of work and benefitsprovided for the contract labour

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Other considerationy Nature (incidental) & necessity (for the industry) of

work

yOrdinarily done through regular workmen

y Perennial nature of work

y When the work needs a whole time employee

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LICENSING OF CONTRACTORS

y Licensing officers (Govt.)

y Contractor shall not undertake or execute any workthro. contract labour without a license issued by D/ ALC

y A pplication shall contain particulars like location,the nature of process, oprn. or work etc. requiringcontract labour

y Investigation, Specific period of License

y Revocation, suspension & amendment

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Welf are & health of Contract Labour

y Duty of every contractor - Canteen (100 Workers), Rest-rooms (for night halt), drinking water, latrines, urinals, washing facilities and

First-aid facilitiesy Liability of principal employer - If the amenity

not provided by the contractor

y Principal employer may recover the amountfrom the contractor by deduction of any amount payable or as a debt payable by thecontractor

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Responsibility for payment of wages

y Contractor shall be responsible for payment of wages to his labour

y A uthorised, nominated Rep. of Principal

employer is to be present at the time of wagesdisbursement by the contractor

y Representative is to certify the wage payment

y Contractor to ensure wage disbursement inpresence of the authorised rep.of PE

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But in case the contractor f ails

y If fails to make payment of wages, or makes shortpayment, then the principal employer shall beliable to make payment of wages in full or theunpaid balance due to the contract labouremployed by the contractor

y PE can recover the amount so paid from thecontractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor

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PENALTIES AND PROCEDUREy Obstruction to inspector, willful refusal to produce

documents - punishable with imprisonment for aterm which may extend to 3 months, or with fine which may extend to Rs. 500, or with both

y Contravention of provisions A ct, rules orcondition of a licence granted

y 3 Months or/& Rs. 1000. Continuation attractsaddl. fine upto Rs. 100/day

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Offences by companies

y Co. as well as every person in charge/ responsibleto the Co. for the conduct of its Bsns. is treated asguilt & liable to be proceeded against and punished

y Director, Manager etc. is also liable if it is provedthat the offence is committed with the consent orconnivance

y Exemption: If established that exercised withoutknowledge or diligently handled

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Cognizance of offences & limitation

y 1st class Magistrate Court on complaint or with pre-sanction of the inspector

y Complaint to be made within 3 months, But, if a

written order of an inspector disobeyed - 6 months

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Registers & Maintenance of Records

y PE & contractor requires to keep particulars of contract labour employed, the nature of workperformed by them, the rates of wages paid etc.

y Within the premises PE & contractor requires to

exhibit hours of work, nature of duty etc. (inprescribed manner).

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Exemption, Protection & Power

y The appropriate Government (in special cases) may exempt

y The appropriate Government has power to make

rulesy The Central Govt. may give directions to the State

reg. the carrying of execution

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Important Forms

y The PE to apply to registered in FormNo. 1, getCertificate in Form No. 2 and maintain registerin FormNo. 3

yThe Contractor has to obtain License depositingthe required fees on FormNo. 4 along with thePE Certificate on FormNo. 5, get license inFormNo. 6

y Contractor & PE to notify start & completion of work in form No 6 A & 6B respectively

y Renewal in formNo 7, Temp provision (8-11)

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Important forms and Returns

y Register of Contractor Form No. 12

y Employment card & Service certificate Form No. 14& 15 (contractor)

y Muster roll, wage admn. Etc Form No. 16 to 23, Wage Slip Form No. 19

y PE to file annual return by 15th Feb to D/ ALC (FormNo. 25). Contractor to file half yrly return by 31st Jan

& Jul of year ( Form No. 24)

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MIR CLR&a Act-labour

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