Contract Labour Act 1970

The Facts You Should Know !

To whom it Applies

• It applies to every establishment in which 20 or more Workmen are employed or were employed on any day of preceding 12 month as contract Labour.

• To every contractor who employ or who employed on any day of the preceding 12 months 20 or more Workmen.

Not Applicable To

• an establishment in which work only of intermittent or casual nature is performed.

• it shall not be deemed to be an intermittent nature:-

• if it was performed for more than one hundred and twenty days in the preceding twelve months; or

• if it is of seasonal character and is performed for more than sixty days in year.

What is an establishment ?

• Any office or department of the government or a local Authority.

• Any place where any industry, trade, business, manufacture or occupation is carried on.

Who is Principal Employer ?

• The Head of the office or department in case of office, government department, local authority or such other officer specified in this behalf.

• The owner or occupier of the factory or the person named as manager in Factory Act.

• Any person responsible for the supervision and control of the establishment.

Who is a 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 contact labour or who supplies contract labour for any work of the establishment and include a sub-contractor.

Registration of Establishment

• Every Principal Employer of an establishment to whom this Act applies shall make an application to the Registering Officer in triplicate in the prescribed form-1 for registration of establishment at least 2 months before the estimated date of commencement of contract work.

• Every application shall be either personally delivered to the RO or sent to him by registered post.

• The application shall be accompanied by treasury receipt in token of the payment of fees as specified in the table below for the registration under the following head of account “0230 – Labour and employment – 106”** Registration and renewal fee under the contract Labour Act.

Maximum Number of worker to be employed on any day during the year

No of

Worker

0 - 20 21- 50 51-100 101-200 201-400 400 +

Amount

of Fees

Rs. 20/- Rs. 50/- Rs.100/- Rs.200/- Rs. 400/- Rs. 500/-

** As applicable for Haryana State

Application

• To the “Labour Commissioner” and “Registering Officer Under Contract Labour Act”.

• In Prescribed form “ Form – 1 ( For Haryana Contract Labour Rules 1975)

• 3 Copies to be send.

• To be signed and submitted by the Principal Employer.

Documents Required

• A certificate by the principal employer in form 5 along with two photos of contractor (One photo should be attached be the principal employer).

• An Affidavit as required by state rules.

• Security deposit treasury challan in Original.

• License fee treasury challan in original.

Other Information

• Every License is valid for one year.

• It will remain in force up to 31st December of the year for which the License is granted.

• Rs. 5 will be charged for duplicate registration Certificate in case it is lost, accidentally destroyed or Defaced.

For Contractor

• The security shall be deposited in the treasury at the rate of Rs. 30/- for each of the workman employed as contract labour.

• License Fee : To be deposited in the treasury as per the schedule

Maximum number of workers to be employed on any day during the year.

0 - 20 21- 50 51-100 101-200 201-400 400 +

Rs. 5/- Rs. 12.5/- Rs.25/- Rs.50/- Rs. 100/- Rs. 125/-

This is taken by the Principal Employer.

This is taken by Contractor

RegistrationRegistration LicenseLicense

This is not renewable on year to year basis

This is valid for only one year / should renewed before due date.

Certificate of Reg.. Need not be displayed at the establishment by P.E.

License shall be displayed prominently at the premises where the contract work is being carried on.

Salient features of Registration & License

RegistrationRegistration LicenseLicense

Salient features of Registration & License

Issued on Payment of fees.

Issued on Payment of Fee & Security money

For only Bank Draft Required.

Bank Draft + Certt. Of P.E. Is required (Form V)

No Conditions are attached as a part certt.

There is full Annx. Containing conditions for fulfillment by contractor.

Liabilities of the Principal Employer• In case the contractor fails to make payment of wages,

then it shall be the responsibility of the principal employer to make such payment to the contract labour.

• The principal employer shall be required to nominate a representative to be present at the time of disbursement of wages by the contractor who shall ensure that wages paid to the contract labour in the prescribed manner.

• In case the facilities like drinking water, latrine & Urinals, washing facilities, first aid boxes, rest room and canteen facilities are not provided by the Contractor then the Principle will have to insure the same.

• He can recover the expenses involved from the Contractor.

• Maintain a register and records in form XII giving particulars like

• No of Contractors and contract labour employed.• Nature of work.• Rate of wages.

• Display Notice at a conspicuous place in English and Local Language containing information like

• Rate of wages.• Hour of work.• Wage period.• Date of payment of wages.• Name and address of the Inspectors.

• Submission of yearly return to Licensing Officer in Form XXV.

Liabilities of the Contractor• Maintain a register in form XIII containing

information like• Muster Roll• Wages• Deductions.• Over time• Fines• Advance • Wage slips

• Issue an employment card in form XIV to each worker and to issue a service certificate on termination of employment in form XV

• Submission of half yearly return to Licensing Officer in Form XXIV.

Acts applicable to Contract Labours.

1. Factories Act 1948.

2. Employee’s Provident Funds and Miscellaneous Provision Act 1952.

3. The Employees State Insurance Act 1948.

4. The Payment of Wages Act 1936.

5. The Minimum Wages Act 1948.

6. The Industrial Disputes Act 1947.

7. The Workman’s Compensation Act 1923.

Thank You !