The Contract Labour Act, 1970

The Contract Labour (Regulation and Abolition), Act, 1970 applies to:

Cost efficient Establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months, as a contractor

Contractor who employs or who employed 20 or more workmen on any day of the preceding 12 months (Section 1)

Registration by Principal Employer

Principal Employer means the owner or occupier or the person who executes ultimate control and supervision and manages the affairs of the establishment

Every Principal Employer is required to register his establishment under the Act and obtain the Certificate of Registration

For this purpose the Principal Employer shall make an application in Form I in triplicate with other relevant documents as may be prescribed in the Act, to the Registering officer , within the stipulated time (Section 7)

Registration (Licence) by the Contractor

Contractor in relation to the establishment means a person who undertakes to produce a given result for the establishment other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor

Every Contractor is required to obtain licence before executing any work through contract labour

For this purpose the an application in Form IV is required to be submitted in triplicate, along with other relevant prescribed documents, to the Licensing Officer of the area in which the Principal Employer's establishment is located (Section 12, Rule 21)

If the Principal Employer does not get registration under Section 7 and /or the contractor does not get the licence under Section 121 of the Contract Labour (R&A) Act, 1970, then the person appointed by the Contractor shall be deemed to be the direct employee of the Principal Employer

When the Registration Certificate is obtained by misrepresentation or suppression of material facts etc. after giving the Principal Employer the opportunity of being heard to the Principal Employer (Section 9)

The Licenses of the Contractor shall be revoked and suspended under following circumstances:

Licence obtained by the Contractor by misrepresentation or suppression of the material facts.

Failure of the Contractor to comply with the conditions contravention of the Act or the Rule (Section14)

The Principal Employer must ensure the following:

Facilities for canteen, restrooms, sufficient supply of drinking water, latrines and urinals, washing.

To recover from the contractor for providing such amenities or to make deductions from amount payable (Section 20)

The Contractor must ensure the following:

Pay wages on time

Disbursement of wages in the presence of authorized representative of the principal employer

Rates of wages not less than the rates as fixed or prevailing in such employment as fixed by the agreement

Principal Employer

Maintenance of register of contractors in respect of every establishment in Form XII(Rule 74)

Contractor

Maintain register of workers for each registered establishment in Form XIII

Issue an Employment Card to each worker in Form XIV

Issue Service Certificate to every workman on his termination in Form XV (Rules 75, 76 & 77)

Principal Employer

Annual Return Form XXV in duplicate is required to be submitted before 15th Feb following the end of the concerned year.

Contractor

Contractor - Half yearly return in Form XXIV in duplicate is required to be submitted within 30 days (Rule 82)