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8
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7
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6
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5
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4
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3
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LETS
START
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CONTRACT LABOUR
REGULATION &
ABOLITION ACT
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DEFINITIONS
Contract Labour - The labour of workers whose freedom is
restricted by the terms of a contractual relation and by laws
that make such arrangements permissible and enforceable.
Should not do any main activity of the Company.
Abolition - Automatic absorption of Contract Labour.

Regulation - Managing or Monitoring the Labour force



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OBJECTIVE:
To regulate the employment of contract labour in
certain establishments and to provide for its abolition
in certain circumstances.

It is to prevent exploitation of the contract labour and
also to introduce better conditions of work.

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BENEFITS OF CONTRACT LAW
The need of contract law is undisputed. It is necessary
for the following among other reasons.
The contract labour would ensure speedy completion
of the assigned work.
Comparatively cheaper with less liability on
supervision and control.
There will not be much union activities.
There is no need of permanent retention of employee.
It is best system for certain activities like construction,
repairs of machines, packing, loading & unloading, etc.
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APPLICABILITY OF THE ACT
Employer
Contractor
Contract
Labour
EMPLOYER
CONTRACTOR
It applies to every employer and
to every contractor who
employees 20 or more number of
workmen on any day of the
preceding twelve months as
contract labour.
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CONTRACT Vs REGULAR
LABOUR
PARAMETERS CONTRACT LABOUR REGULAR LABOUR
Part time/ finite time Full Time
Relationship Has an Intermediary i.e.,
Contractor
Directly connected to the
Organization
Work Performs the Supplement
job
Performs the main
activity of the
organization
Responsible/
Reporting
To the Contractor To the employer
Supervision By the Contractor By the Employer
Facilities Provided by the Contractor Provided by the
Employer
Payment Type Time Based/ Piece Rated Regular Pay
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