Applicability & Compliances of Contract Labour (Regulation And Abolition Act), 1970

Contract labour refers to an employed person, hired to work in a company through a contractor for a specific work and a finite period. The contract labours are not recruited directly by the companies, and they do not have a particular payroll. Companies hire contractors who, in turn, recruit these workmen for different jobs. To prevent the ill-treatment of workers in any establishment and to ensure a healthier working environment for them, the contract Labour regulation and abolition act were introduced in 1970. This act, apart from regulating the welfare, health, payments of the contract Labour, also has detailed provisions for the registration of the companies and grants of the license to the contractors.

Contract Labour (Regulation And Abolition Act), 1970 was enacted to regulate the employment of contract Labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

Applicability

1. Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour.
2. Every contractor who employees or who employed on any day of the preceding 12 months 20 or more workmen.

It does not apply to the establishments in which work only of an intermittent or casual nature is performed and deemed to be intermittent nature if it is performed for less than 120 days in the preceding 12 months or it is of non-seasonal and is performed for less than 60 days in a year.

The Act is not applicable to a person who is appointed in an advisory or managerial capacity.

A defaulter Contractor is added liability on Principal Employer.

Compliances

1. The Contractors to be send Half-Yearly Returns on 30th July for the period Jan-June & 30th January for the period of July-Dec in Form No. XXIV.
2. The Principal Employer has to send Annual Return on 15th February for the period of Jan-December in Form No. XXV to the Registering Officer.
3. The Principal Employer has within 15 days of commencement or completion of each contract and both, submission of return in Form No. VI-B to the Inspector.
4. The Principal Employer has to obtain registration certifiacte for the establishment and for the contractor, has to obtain License or renewed license.
5. Display of Abstract of Act & Rule and other required detatils is mandatory.
6. The Principal Employer maintains register of contractors in Form No. XII.
7. Minimum rate of wages to be paid to the Contractor labour by the Principal Employer.
8. Canteen, Rest Room, Drinking Water, Latrines, Washing Facilities and Urinals and First Aid Box to be provided to the workers

As per Ease of Compliance Rules, Common Registers to be maintained either electronically or otherwise and used for the purposes of the aforesaid act.

Form A, Form B, Form C & Form D has notified accordingly in place of Form XIII, XVI, XVII, XX, XXI, XXII & XXIII as per CLRA Act.

Penalty for Non-Compliance

1. 3 Months imprisonment or fine upto Rs.500, or both for obstructing the inspector or failing to produce registers etc.
2. For violation of the provisions of Act or the Rules, imprisonment of 3 Months or fine upto Rs.1000. On continuing contravention, additional fine upto Rs.100 per day.