Abstract of The Contract Labour Act
Abstract of The Contract Labour Act
The Act does not take away the rights/benefits of any workmen who by terms of any agreement or contract or
Standing Orders are enjoying or can obtain or are entitled to more favourable conditions of service or from entering
into such agreements etc; entitling them to more favourable benefits than provided under the Act.
II. TO WHOM THE ACT APPLIES – The Act applies to every establishment in which 20 or more workmen are
employed or were employed on any day of the preceding 12 months as Contract Labour and to every contractor who
employs or who employed on any day of the preceding 12 months, 20 or more workmen.
The establishments in which intermittent or casual work is performed do not come within the purview of the Act.
However, an establishment wherein work is performed for 120 days or more in the preceding 12 months or more
than 60 days in a year on work of a seasonal character will not be deemed as carrying out the work of intermittent
nature.
(a) any establishment pertaining to any industry carried on by or under the authority of the Central
Government,
(b) Any controlled industry which may be specified by the Central Government,
(c) any Railway,
(d) Cantonment Board,
(e) Major Port,
(f) Mine,
(g) Oilfield,
(h) any establishment of a banking or insurance company.
(b) In relation to any other establishment the Government are in which the establishment is situated.
(ii) “Establishment” – Any office or department of the Government or local authority or any place where any
industry, trade, business, manufacture or occupation is carried on.
(iii) “Principal Employer” – (a) In relation to any office or department of the Government or local authority, the
head of the office or department or local authority or any other officer specified in this behalf by the
Government or local authority
(b) In the case of factory the owner or occupier of the factory and the manager appointed under the Factories
Act and in the case of a mine the owner or agent of the mine and the manager of the mine. (c) In any other
establishment in person who is responsible for supervision and control of the establishment.
(iv) “Contractor” – 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. A contractor includes a sub-contractor.
(v) “Contract Labour” – A workmen shall be deemed to be employed as “contract labour” when he is hired for
work in an establishment through a contractor with or without the knowledge of the principal employer.
(vi) “Workman” Any person employed in or in connection with the work of any establishment to do any
skilled, semiskilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the
terms of employment be express or implied.
A person employed mainly in a managerial or administrative capacity or employed in supervisory capacity and
is drawing wages, exceeding Rs. 500/- per month or exercising functions mainly of a managerial nature and an
out-worker who performs any work on behalf of the principal employer in premises which are not under the
control and management the principal employer, will not be deemed as a workman within the purview of the
Act.
IV. MACHINERY FOR ENFORCEMENT OF THE ACT/RULES IN CENTRAL SPHERE – All Assistant
Labour Commissioners (Central) have been appointed as Registering and Licensing Officers and all the
Regional Labour Commissioners (Central), as Appellate Officers. All the Regional Labour Commissioners