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Contract Labour Act 1970

The Facts You Should Know !

Presented by, Vasantha Lakshmi. C MSW HR Dept. of Social Work Pondicherry University

To whom it Applies

It applies to every establishment in which 20 or more Workmen are employed To every contractor who employ or who employed on any day of the preceding 12 months 20 or more Workmen.

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 owner or occupier of the factory or the person named as manager (Plant 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 subcontractor.

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.

No of Worker Amount of Fees

0 - 20

21- 50




400 +

Rs. 20/- Rs. 50/-



Rs. 400/-

Rs. 500/-


To the Labour Commissioner and Registering Officer Under Contract Labour Act. In Prescribed form Form 1 3 Copies to be send. To be signed and submitted by the Principal Employer.

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.

Salient features of Registration & License

Registration This is taken by the Principal Employer. License

This is taken by Contractor This is valid for only one year / should renewed before due date. License shall be displayed prominently at the premises where the contract work is being carried on.

This is not renewable on year to year basis Certificate of Reg.. Need not be displayed at the establishment by P.E.

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. 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 employer 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.

Thank You !