CONTRACT LABOUR (REGULATION AND

ABOLITION) ACT 1970

by :
DR. T.K. JAIN
AFTERSCHO☺OL
centre for social entrepreneurship
sivakamu veterinary hospital road
bikaner 334001 rajasthan, india
afterschoool@in.com
mobile : 91+9414430763

5 DECEMBER 09 AFTERSCHOOOL centre for social 1

entrepreneurship
 What is it

Under this law, contrat labour is regularised.

Every worker where 20 or more contract
labour are working, will have to get registered
under the law. The conractor will also be
registered. The government can order for
abolition of the contract system also and in that
case, the workers can request for regular
appointment as per Article 226 of constitution.
5 DECEMBER 09 AFTERSCHOOOL centre for social 2
entrepreneurship
 Definitions
2(1)b: contract labout : appointment on
contract basis
2(1)c : contractor : who makes contract to give
results using contract labour
2(1)e: establishment : any place/ office / govt.
Department / factory etc.
2(1)g : principal employer : owner / occupier /
manager
2(1)i : workman : worker other than manager
5 DECEMBER 09 AFTERSCHOOOL centre for social 3
entrepreneurship
 Authorities under the law

Central advisory board

state advisory board
registering officer

5 DECEMBER 09 AFTERSCHOOOL centre for social 4

entrepreneurship
 Prohibition of contract labour

As per section 10, the central government can

prohibit employment of contract labour in
some industry. When the government realises
that in an industry, only regular employees
should be there, it can order for prohibition of
contract labour. Example : on 1/2/75, the govt.
Banned contract labour in coal mines.
5 DECEMBER 09 AFTERSCHOOOL centre for social 5
entrepreneurship
 Case study : vegolis Pvt ltd 1971

After this law, only central govt. Can abolish

contract labour, not the tribunals.

5 DECEMBER 09 AFTERSCHOOOL centre for social 6

entrepreneurship
 Case study : Gujarat Electricity
Board 1995

All undertakings must identify contract labours

and try to abolish contract labour as per sec.
10(2) a, and b.
Govt. Should also try to appoint a committee to
look into the matter and try to abolish contract
labour.

5 DECEMBER 09 AFTERSCHOOOL centre for social 7

entrepreneurship
 Case study : Air India 1997

High cout can order industry to absorb

employees as regular employees, after
abolition of contract labour under the act.
Employees can also go to the court under
article 226 for regular employment after
contract labour has been abolished.

5 DECEMBER 09 AFTERSCHOOOL centre for social 8

entrepreneurship
 Case study : SAIL 2001

The court held that employer cannot be asked

to absorb contract labour as regular employees.
Thus the court overruled its judgement of Air
India case.

5 DECEMBER 09 AFTERSCHOOOL centre for social 9

entrepreneurship
 Licensing

Every company that wants to appoint contract

labour, will have to obtain licence for this. The
licencing authority will investigate the matter
and then give licence. The licence will be
issued only after investigation.

5 DECEMBER 09 AFTERSCHOOOL centre for social 10

entrepreneurship
 Welfare of contract labour (sec.
16 to 21)

Every company which employs contract labour

will have to provide them canteen, rest rooms,
first aid failities, etc. If the workers dont get
their wages, they can claim it from principal
employer. The contractor will pay wages to
worker before a representative of principal
employer.
5 DECEMBER 09 AFTERSCHOOOL centre for social 11
entrepreneurship
 Penalties

Sec. 23 provides that if the act is violated, there

may be penalty for 3 month imprisonment / Rs.
1000.

5 DECEMBER 09 AFTERSCHOOOL centre for social 12

entrepreneurship
 Inspectors

Under the law, the inspectors are appointed,

who will inspect factories etc
every organisation will have to maintain
records regarding appointment of contract
labour as per sec. 29.

5 DECEMBER 09 AFTERSCHOOOL centre for social 13

entrepreneurship
 THANKS....

GIVE YOUR SUGGESTIONS AND JOIN

AFTERSCHOOOL NETWORK / START
AFTERSCHOOOL NETWORK IN YOUR
CITY
AFTERSCHOOOL@IN.COM
PGPSE – WORLD'S MOST
COMPREHENSIVE PROGRAMME IN
SOCIAL ENTREPRENEURSHIP
5 DECEMBER 09 AFTERSCHOOOL centre for social 14
entrepreneurship