The Contract Labour (regulation And Abolition) Act, 1970

 
 
 
 
 
 
 
 
INDEX  
The Contract Labour (regulation And Abolition) Act, 1970  
Section Particulars  
INTRODUCTION  
Statement Of Objects And Reasons 
Act  37  Of  1970  
Amendin gActs  
 
CH. I PRELIMINARY  
1.  Short title, extent, commencement and application.  
2. Definitio ns.  
 
CH. II THE ADVISORY BOARDS  
3.  Central Advisory Board.  
4.  State Advisory Board.  
5.  Power  to  constitute  committees.  
 
CH. III REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LABOUR 
  6.  Appointment of registering officers.  
7.  Registration of certain establishments.  
8.  Revocation of registration in certain cases.  
9.  Effect of non-registration.  
10 . Prohibition  of  employment  of  contract  labou r. 
 
CH. IV LICENSING OF CONTRACTORS  
11. Appointment of licensing officers.  
12. Licensing of contractors. 
13. Grant of licences.  
14. Revocation, suspension and amendment of licences.  
15 . Appeal.  
 
CH. V WELFARE AND HEALTH OF CONTRACT LABOUR  
16. Canteens.  
17. Rest-rooms.  
18. Other facilities.  
19. First-aid facilities.  
20. Liability of principal employer in certain cases.  
21. Responsibility for payment of wages.  
 
 
 
 
 
 
Sec.  Particulars Page  
CH. VI PENALTIES AND PROCEDURE  
22. Obstructions.  
23. Contravention of provisions regarding  
 employment  of  contract  labou r. 
24. Other offences.  
25 . Offences  by  companies.  
26 . Cognizance  of  offences.  
27 . Limitatio n of prosecutions.  
 
CH. VII MISCELLANEOUS  
28. Inspecting staff.  
29. Registers and other records to be maintained.  
30. Effect of laws and agreements inconsistent with this Act.  
31. Power to exempt in special cases.  
32. Protection of action taken under this Act.  
33. Power to give directions.  
34. Power to remove difficulties.  
35. Power to make rules.  
 COMMENTS  
 
 
 
 
 
 
 
 
 
THE CONTRACT LABOUR (REGULATION 
AND ABOLITION) ACT, 1970  
 
 
INTRODUCTION  
Employment of contract labour has been a cause of v arious problems. The 
question of its abolition had been under consideration of Government. In the Second 
Five Year Plan, the Planning Commission made certain recommendations, namely, 
undertaking of studies to ascertain the extent of t he problem of contract labour, 
progressive abolition of the system of contract labour and improvement of service 
conditions of contract labour. The matter was discu ssed at various meetings of 
Tripartite Committees at which State Governments we re also represented and the 
general consensus of opinion was that the system of  contract labour should be 
abolished wherever possible and practicable, and that in cases where the system of 
contract labour could not be abolished altogether, the working conditions of contract 
labour could be regulated so as to ensure payment of wages and provision of essential 
amenities. To implement the recommendations of the Planning Commission and 
consensus opinion of the Tripartite Committees the Contract Labour (Regulation 
and Abolition) Bill was introduced in the Parliament.  
 
 
ST ATEMENT OF OBJECTSAND REASONS  
The system of employment of contract labour lends i tself to various abuses. 
The question of its abolition has been under the consideration of Government for a 
long time. In the Second Five Year Plan, the Planni ng Commission made certain 
recommendations, namely, undertaking of studies to ascertain the extent of the 
problem of contract labour, progressive abolition of the system and improvement of 
service conditions of contract labour where the abo lition was not possible. The 
matter was discussed at various meetings of Tripart ite Committees at which the 
State Governments were also represented and the gen eral consensus of opinion 
was that the system should be abolished wherever possible and practicable and that 
in cases where this system could not be abolished altogether, the working conditions 
of contract labour should be regulated so as to ensure payment of wages and provision 
of essential amenities.  
2. The proposed Bill aims at the abolition of contr act labour in respect of 
such categories as may be notified by the appropria te Government in the light of 
certain criteria that have been laid down, and at regulating the service conditions of 
contract labour where abolition is not possible. The Bill provides for the setting up of  
 
 
 
 
 
   
 
 
Advisory Boards of a tripartite character, represen ting various interests, to advise 
the Central and State Governments in administering the legislation and registration 
of establishments and contractors. Under the Scheme of the Bill, the provision and 
maintenance of certain basic welfare amenities for contract labour, like drinking 
water and first-aid facilities, and in certain case s rest-rooms and canteens, have 
been made obligatory. Provisions have also been made to guard against defaults in 
the matter of wage payment.  
 
 
ACT 37 OF 1970  
The Contract Labour (Regulation and Abolition) Bill was passed by both the 
Houses of Parliament and subsequently received the assent of the President on 5th 
September, 1970 under the short title and the numbers THE CONTRACT LABOUR 
(REGULATION AND ABOLITION) ACT, 1970 (37 of 1970). It came into effect 
on 10th February, 1971.  
 
 
AMENDINGACTS  
1. The Contract Labour (Regulation and Abolition) (Amendment) Act, 1986 (14 of  
1986).  
2. The Delegated Legislation Provisions (Amendment) Act, 2004 (4 of 2005).  
 
 
 
 
 
The Contract Labour (Regulation and Abolition) Act,  1970  
 
THE CONTRACT LABOUR (REGULATION 
AND ABOLITION) ACT, 1970  
 
(37 of 1970)  
[5th September, 1970] 
An Act to regulate the employment of contract labou r in certain 
establishments and to provide for its abolition in certain circumstances and  
for matters connected therewith.  
BE it enacted by Parliament in the Twenty-first Year of the Republic of India 
as follows:—  
CHAPTERI 
PRELIMINARY  
1 . Short title, extent, commencement and applicati on. —(1) This Act may  
be called the Contract Labour (Regulation and Abolition) Act, 1970.  
(2) It extends to the whole of India.  
(3) It shall come into force on such date 1 as the Central Government may, 
by notification in the Official Gazette, appoint and different dates may be appointed 
for different provisions of this Act.  
(4) It applies—  
(a) to every establishment in which twenty or more workmen are employed 
or were employed on any day of the preceding twelve months as contract labour;  
(b) to every contractor who employs or who employed  on any day of the 
preceding twelve months twenty or more workmen:  
Provided that the appropriate Government may, after giving not le ss than two 
months’ notice of its intention so to do, by notifi cation in the Official Gazette, 
apply the provisions of this Act to any establishme nt or contractor employing 
such number of workmen less than twenty as may be s pecified in the notification. 
(5) (a) It shall not apply to establishments in whi ch work only of an  
intermittent or casual nature is performed.  
(b) If a question arises whether work performed in an establishment is of 
an intermittent or casual nature, the appropriate Government shall decide that question  
after consultation with the Central Board or, as the case may be, a State Board, and  
its decision shall be final.  
Explanation.— For the purpose of this sub-section, work performed  in an 
establishment shall not be deemed to be of an intermittent nature—  
(i)   if it was performed for more than one hundred and twenty days in  
the preceding twelve months, or  
(ii)  if it is of a seasonal character and is performed for more than sixty  
days in a year. 
 
1.  Came into force on 10-2-1971, vide G .S.R. 190, dated 1st February, 1971, published in the  
Gazette of India, Extra., Pt. II, Sec. 3(i), dated 10th February, 
 
 
 
 
 
   
 
 
COMMENTS  
The Act is a piece of social legislation for the welfare of labourers whose conditions 
of service are not at all satisfactory and it shoul d, therefore, be literally construed; Lionel 
Edward Ltd. v. Labour Enforcement Officer , 1977 Lab 1C 1037 (Cal).  
2 . Definitions. — (1) In this Act, unless the context otherwise req uires,—  
1(a)  “appropriate Government” means,—  
(i)   in relation to an establishment in respect of  which the appropriate 
Government under the Industrial Disputes Act, 1947 (14 of 1947), 
is the Central Government, the Central Government;  
(ii)  in relation to any other establishment, the Government of the State 
in which that other establishment is situated;]  
(b) a workman shall be deemed to be employed as “co ntract labour” in or 
in connection with the work of an establishment when he is hired in or 
in connection with such work by or through a contractor, with or without 
the knowledge of the principal employer;  
(c) “contractor”, in relation to an establishment, means 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 and includes a sub-contractor;  
(d) “controlled industry” means any industry the co ntrol of which by the 
Union has been declared by any Central Act to be ex pedient in the 
public interest;  
(e) “establishment” means—  
(i)   any office or department of the Government or a local authority, or  
(ii)  any place where any industry, trade, business , manufacture or 
occupation is carried on;  
(f) “prescribed” means prescribed by rules made und er this Act; 
(g) “principal employer” means—  
(i)   in relation to any office or department of the Government or alocal 
authority, the head of that office or department or such other officer 
as the Government or the local authority, as the case may be, may 
specify in this behalf,  
(ii)  in a factory, the owner or occupier of the fa ctory and where a 
person has been named as the manager of the factory  under the 
Factories Act, 1948 (63 of 1948), the person so named,  
(iii) in a mine, the owner or agent of the mine and  where a person has 
been named as the manager of the mine, the person so named,  
(iv) in any other establishment, any person responsible for the supervision 
and control of the establishment.  
 
1. Subs, by Act 14 of 1986 (w.r.e.f. 28-1-1986).  
 
 
 
 
 
The Contract Labour (Regulation and Abolition) Act,  1970  
 
Explanation.— For the purpose of sub-clause (iii) of this clause,  the expressions 
“mine”, “owner” and “agent” shall have the meanings respectively assigned to them 
in clause (j), clause (1) and clause (c) of sub-sec tion (1) of section 2 of the Mines 
Act, 1952 (35 of 1952);  
(h) “wages” shall have the meaning assigned to it i n clause (vi) of section 2 
of the Payment of Wages Act, 1936 (4 of 1936);  
(i) “workman” means any person employed in or in co nnection with the 
work of any establishment to do any skilled, semi-skilled or un-skilled 
manual, supervisory, technical or clerical work for  hire or reward, 
whether the terms of employment be express or impli ed, but does not 
include any such person—  
(A) who is employed mainly in a managerial or admin istrative 
capacity; or  
(B) who, being employed in a supervisory capacity d raws wages 
exceeding five hundred rupees per mensem or exercises, either by 
the nature of the duties attached to the office or by reason of the 
powers vested in him, functions mainly of a managerial nature; or  
(C) who is an out-worker, that is to say, a person to whom any articles 
or materials are given out by or on behalf of the principal employer 
to be made up, cleaned, washed, altered, ornamented , finished, 
repaired, adapted or otherwise processed for sale f or the purposes 
of the trade or business of the principal employer and the process is 
to be carried out either in the home of the out-wor ker or in some 
other premises, not being premises under the contro l and 
management of the principal employer. (2) Any refer ence in this 
Act to a law which is not in force in the State of Jammu and Kashmir 
shall, in relation to that State, be construed as a  reference to the 
corresponding law, if any, in force in that State.  
 
 
COMMENTS  
If the workman is not hired through a contractor ho lding a valid licence under the 
Act, he would be a workman employed by the manageme nt itself; Workmen of Best & 
Crompton Industries Ltd. v. Best and Crompton Engineering Ltd., (1985) II LLN 169 (Mad).  
 
 
CHAPTERII 
THEADVISORY BOARDS  
3 . Central Advisory Board.— (1) The Central Government shall, as soon as  
may be, constitute a board to be called the Central Advisory Contract Labour Board 
(hereinafter referred to as the Central Board) to advise the Central Government on 
such matters arising out of the administration of this Act as may be referred to it and 
to carry out other functions assigned to it under this Act.  
 
 
 
 
 
   
 
(2) The Central Board shall consist of—  
(a) a Chairman to be appointed by the Central Gover nment; 
(b) the Chief Labour Commissioner (Central), ex-officio;  
(c) such number of members, not exceeding seventeen  but not less than  
eleven, as the Central Government may nominate to r epresent that 
Government, the Railways, the coal industry, the mi ning industry, the 
contractors, the workmen and any 0ther interests which, in the opinion 
of the Central Government, ought to be represented on the Central Board.  
(3) The number of persons to be appointed as member s from each of the 
categories specified in sub-section (2), the term o f office and other conditions of 
service of, the procedure to be followed in the dis charge of their functions by, and 
the manner of filling vacancies among, the members of the Central Board shall be 
such as may be prescribed:  
Provided that the number of members nominated to represent the wo rkmen 
shall not be less than the number of members nomina ted to represent the 
principal employers and the contractors.  
4 . State Advisory Board.— (1) The State Government may constitute a board 
to be called the State Advisory Contract Labour Boa rd (hereinafter referred to as 
the State Board) to advise the State Government on such matters arising out of the 
administration of this Act as may be referred to it  and to carry out other functions 
assigned to it under this Act.  
(2) The State Board shall consist of—  
(a) a Chairman to be appointed by the State Governm ent;  
(b) the Labour Commissioner, ex officio, or in his absence any other officer 
nominated by the State Government in that behalf;  
(c) such number of members, not exceeding eleven bu t not less than nine, 
as the State Government may nominate to represent that Government, 
the industry, the contractors, the workmen and any other interests which, 
in the opinion of the State Government, ought to be represented on the 
State Board.  
(3) The number of persons to be appointed as member s from each of the 
categories specified in sub-section (2), the term o f office and other conditions of 
service of, the procedure to be followed in the dis charge of their functions by, and 
the manner of filling vacancies among, the members of the State Board shall be 
such as may be prescribed:  
Provided that the number of members nominated to represent the wo rkmen 
shall not be less than the number of members nomina ted to represent the 
principal employers and the contractors.  
5 . Power to constitute committees.— (1) The Central Board or the State 
Board, as the case may be, may constitute such committees and for such purpose or 
purposes as it may think fit.  
 
 
 
 
 
The Contract Labour (Regulation and Abolition) Act,  1970  
 
(2) The committee constituted under sub-section (1)  shall meet at such 
times and places and shall observe such rules of procedure in regard to the transaction 
of business at its meetings as may be prescribed.  
(3) The members of a committee shall be paid such f ees and allowances 
for attending its meetings as may be prescribed:  
Provided that no fees shall be payable to a member who is an offi cer of  
Government or of any corporation established by any law for the time being in force.  
 
 
CHAPTERIII  
REGISTRA TION OF EST ABLISHMENTS EMPLOYING CONTRACTLABOUR  
6 . Appointment of registering officers.— The appropriate Government may, 
by an order notified in the Official Gazette—  
(a) appoint such persons, being Gazetted Officers o f Government, as it 
thinks fit to be registering officers for the purposes of this Chapter; and  
(b) define the limits, within which a registering o fficer shall exercise the 
powers conferred on him by or under this Act.  
7 . Registration of certain establishments.— (1) Every principal employer of 
an establishment to which this Act applies shall, within such period as the appropriate 
Government may, by notification in the Official Gazette, fix in this behalf with respect 
to establishments generally or with respect to any class of them, make an application 
to the registering officer in the prescribed manner for registration of the establishment: 
Provided that the registering officer may entertain any such appl ication for 
registration after expiry of the period fixed in th is behalf, if the registering 
officer is satisfied that the applicant was prevent ed by sufficient cause from 
making the application in time.  
(2) If the application for registration is complete in all respects, the registering 
officer shall register the establishment and issue to the principal employer of the 
establishment a certificate of registration contain ing such particulars as may be 
prescribed.  
 
 
COMMENTS  
(i) Contravention of the provisions of section 7 is  an offence; Deena Nath v. 
National Fertilizers, 1992 LLR 46.  
(ii) An establishment of Contract Labour required r egistration under section 7 
of the Act; Anapal v. J.S.E.B., 2003 (2) LLJ 335 (Thar).  
8 . Revocation of registration in certain cases. —If the registering officer is 
satisfied, either on a reference made to him in thi s behalf or otherwise, that the 
registration of any establishment has been obtained  by misrepresentation or 
suppression of any material fact, or that for any o ther reason the registration has 
become useless or ineffective and, therefore, requires to be revoked, the registering  
 
 
 
 
 
   
 
 
officer may, after giving an opportunity to the principal employer of the establishment 
to be heard and with the previous approval of the appropriate Government, revoke 
the registration.  
9 . Effect of non-registration. —No principal employer of an establishment, to 
which this Act applies, shall—  
(a) in the case of an establishment required to be registered under section  
7, but which has not been registered within the time fixed for the purpose under that 
section,  
(b) in the case of an establishment the registratio n in respect of which has 
been revoked under section 8, employ contract labour in the establishment after the 
expiry of the period referred to in clause (a) or a fter the revocation of registration 
referred to in clause (b), as the case may be.  
10. Prohibition of employment of contract labour. —(1) Notwithstanding 
anything contained in this Act, the appropriate Government may, after consultation 
with the Central Board or, as the case may be, a State Board, prohibit, by notification 
in the Official Gazette, employment of contract labour in any process, operation or 
other work in any establishment.  
(2) Before issuing any notification under sub-secti on (1) in relation to an 
establishment, the appropriate Government shall hav e regard to the conditions of 
work and benefits provided for the contract labour in that establishment and other 
relevant factors, such as—  
(a) whether the process, operation or other work is  incidental to, or necessary 
for the industry, trade, business, manufacture or occupation that is carried 
on in the establishment;  
(b) whether it is of perennial nature, that is to s ay, it is of sufficient duration 
having regard to the nature of industry, trade, business, manufacture or 
occupation that is carried on in that establishment;  
(c) whether it is done ordinarily through regular w orkmen in that 
establishment or an establishment similar thereto;  
(d) whether it is sufficient to employ considerable  number of whole-time 
workmen.  
Explanation.— If a question arises whether any process or operation or other work 
is of perennial nature, the decision of the appropr iate Government thereon shall 
be final.  
 
 
COMMENTS  
(i) It is the scrutiny of individual establishment which is contemplated by section  
10 of the Act. There is no hostile discrimination; National Organic Chemical Industry Ltd. 
v. State of Maharashtra, (1989) II LLN 817 (Bom).  
 
 
 
 
 
The Contract Labour (Regulation and Abolition) Act,  1970  
 
(ii) The power of the appropriate Government under section 10 is not affected or 
curtailed in any manner by section 119 of the Facto ries Act, 1948; Government of Andhra 
Pradesh v. Bhadarachalam Paper Board Ltd., (1990) 7 6 FJR 58 (AP).  
(iii) The decision regarding the prohibition of emp loyment of contract labour is 
no doubt with the appropriate Government but this d ecision is subject to judicial review; 
Zenith Industrial Service v. Union of India, (1990)  1 LLJ 38 (Ori).  
(iv) Consultation with the Central Advisory Board i s mandatory; Tata Refractories  
Ltd. v. Union of India, (1992) II LLJ 810 (Ori).  
(v) The Act does not provide for a total abolition of contract labour but it provides 
for abolition of contract labour in appropriate cas es; Deena Nath v. National Fertilizers 
Ltd., 1992 LLR 46 (SC).  
(vi) There is no automatic absorption of the labour ers in the regular employment; 
T. Chandra Mohan Nair v. Fertilizers & Chemicals Travancore Ltd., 1994 LLR 626 (Ker). 
(vii) Provisions of section 10(2) of this Act are m andatory. Amendment Act No. 14  
of 1988 cannot have retrospective effect; FCI Class IV Employees’ Union v. F .CJ., (1994) II  
LLJ 102 (P & H).  
(viii)  The primary object of the Act is to stop ex ploitation of contract labourers by 
contractor or establishment. The Act does not purpo rt to abolish contract labour in its 
entirety; R.K. Panda v. Steel Authority of India, ( 1994) 69 FLR 256 (SC).  
(ix) It is only the appropriate Government which ha s the authority to abolish 
contract labour system and not the court including the industrial adjudicator; Gujarat 
Electricity Board v. Hind Mazdoor Sabha, 1995 LLR 5 52 (SC).  
(x) An industrial dispute can be raised for aboliti on of contract labour system; 
Gujarat Electricity Board v. Hind Mazdoor Sabha, 19 95 LLR 552 (SC).  
(xi) On issuance of prohibition under section 10(1)  of the Act prohibiting 
employment of contract labour or otherwise, in an i ndustrial dispute brought before it by 
any contract labour in regard to conduct of service  Industrial Adjudicator will have to be 
interpose on the ground of having undertaken to pro duce any given result for the 
establishment or for supply of contract labour for work of the establishment under a 
genuine contract or is a mere ruse/camouflage legis lations so as to deprive the workers of 
the benefits thereunder; Rajesh Kumar v. Union of I ndia, 2003 (2) LLJ 102 (Del).  
 
 
CHAPTER IV LICENSING OF 
CONTRACTORS  
11. Appointment of licensing officers. —The appropriate Government may, by  
an order notified in the Official Gazette,—  
(a) appoint such persons, being Gazetted Officers o f Government, as it 
thinks fit to be licensing officers for the purposes of this Chapter; and  
(b) define the limits, within which a licensing officer shall exercise the powers 
conferred on licensing officers by or under this Act.  
12. Licensing of contractors. —(1) With effect from such date as the appropriate 
Government may, by notification in the Official Gazette, appoint, no contractor to 
whom this Act applies, shall undertake or execute any work through contract labour  
 
 
 
 
   
 
except under and in accordance with a licence issued in that behalf by the licensing 
officer. 
(2) Subject to the provisions of this Act, a licenc e under sub-section (1) 
may contain such conditions including, in particular, conditions as to hours of work, 
fixation of wages and other essential amenities in respect of contract labour as the 
appropriate Government may deem fit to impose in ac cordance with the rules, if 
any, made under section 35 and shall be issued on payment of such fees and on the 
deposit of such sum, if any, as security for the due performance of the conditions as 
may be prescribed.  
 
 
COMMENTS  
(i) Both conditions of obtaining a certificate of r egistration and employing 
labour through a licensed contractor by the princip al employer must be satisfied; Food 
Corporation of India Workers’ Union v. Food Corporation of India, 1990 LLR 589 (Guj). 
(ii) The employees engaged by a contractor to run a  canteen for a company do  
not become employees of the company if the contract or fails to register the contract with  
the appropriate authorities; General Labour Union ( Red Flag) v. KM. Desai, 1990 LLR  
208 (Bom).  
(iii) Licensing is only a regulatory measure and it  does not create any privilege; 
Steel Authority of India v. Steel Authority of Indi a Contract Workmen’ s Union, (1990) 64  
FLR 573 (Karn).  
(iv) No special qualification is required for a per son who seeks a licence; Steel  
Authority of India v. Steel Authority of India Cont ract Workmen’ s Union, (1990) 64 FLR  
573 (Karn).  
 
 
13. Grant of licences. —(1) Every application for the grant of a licence u nder 
sub-section (1) of section 12 shall be made in the prescribed form and shall contain 
the particulars regarding the location of the estab lishment, the nature of process, 
operation or work for which contract labour is to b e employed and such other 
particulars as may be prescribed.  
(2) The licensing officer may make such investigati on in respect of the 
application received under sub-section (1) and in making any such investigation the 
licensing officer shall follow such procedure as may be prescribed.  
(3) A licence granted under this Chapter shall be valid for the period specified 
therein and may be renewed from time to time for su ch period and on payment of 
such fees and on such conditions as may be prescribed.  
14. Revocation, suspension and amendment of licence s.— (1) If the licensing 
officer is satisfied, either on a reference made to  him in this behalf or 
otherwise, that—  
(a) a  licence  granted  under  section  12  has  b een  obtained  by 
mis-representation or suppression of any material fact, or  
 
 
 
 
 
The Contract Labour (Regulation and Abolition) Act,  1970  
 
(b) the holder of a licence has, without reasonable  cause, failed to comply 
with the conditions subject to which the licence has been granted or has 
contravened any of the provisions of this Act or the rules made thereunder, 
then, without prejudice to any other penalty to which the holder of the 
licence may be liable under this Act, the licensing  officer may, after 
giving the holder of the licence an opportunity of showing cause, revoke 
or suspend the licence or forfeit the sum, if any, or any portion thereof 
deposited as security for the due performance of the conditions subject 
to which the licence has been granted.  
(2) Subject to any rules that may be made in this b ehalf, the licensing officer 
may vary or amend a licence granted under section 12.  
15. Appeal.— (1) Any person aggrieved by an order made under section 7, section  
8, section 12 or section 14 may, within thirty days from the date on which the order 
is communicated to him, prefer an appeal to an appe llate officer who shall be a 
person nominated in this behalf by the appropriate Government:  
Provided that the appellate officer may entertain the appeal afte r the expiry of 
the said period of thirty days, if he is satisfied that the appellant was prevented 
by sufficient cause from filing the appeal in time.  
(2) On receipt of an appeal under sub-section (1), the appellate officer 
shall, after giving the appellant an opportunity of being heard dispose of the appeal 
as expeditiously as possible.  
 
 
COMMENTS  
Rules 33 to 39 of the Contract Labour (Regulation a nd Abolition) Central Rules,  
1971 lay down the procedure relating to appeals.  
 
 
CHAPTER V 
WELF AREAND HEAL TH OFCONTRACT LABOUR  
16. Canteens.— (1) The appropriate Government may make rules requiring that 
in every establishment—  
(a) to which this Act applies,  
(b) wherein work requiring employment of contract l abour is likely t<  
continue for such period as may be prescribed, and  
(c) wherein contract labour numbering one hundred  or more I ordinarily 
employed by a contractor, one or more canteens shall be provided and 
maintained by the contractor for th use of such contract labour. 
(2) Without prejudice to the generality of the fore going power, such rules 
may provide for—  
(a) the date by which the canteens shall be provide d;  
(b) the number of canteens that shall be provided, and the standards in  
 
 
 
 
 
   
 
 
respect of construction, accommodation, furniture and other equipment 
of the canteens; and  
(c) the foodstuffs which may be served therein and the charges which may 
be made therefor. 
17. Rest-rooms.— (1) In every place wherein contract labour is requi red to halt 
at night in connection with the work of an establishment—  
(a) to which this Act applies, and  
(b) in which work requiring employment of contract labour is likely to continue 
for such period as may be prescribed, there shall b e provided and 
maintained by the contractor for the use of the con tract labour such 
number of rest-rooms or such other suitable alternative accommodation 
within such time as may be prescribed.  
(2) The rest-rooms or the alternative accommodation  to be provided under 
sub-section (1) shall be sufficiently lighted and ventilated and shall be maintained in 
a clean and comfortable condition.  
18. Other facilities.— It shall be the duty of every contractor employing contract 
labour in connection with the work of an establishment to which this Act applies, to 
provide and maintain—  
(a) a sufficient supply of wholesome drinking water  for the contract labour 
at convenient places;  
(b) a sufficient number of latrines and urinals of the prescribed types so 
situated as to be convenient and accessible to the contract labour in the 
establishment; and  
(c) washing facilities.  
19. First-aid facilities.— There shall be provided and maintained by the contractor 
so as to be readily accessible during all working hours a first-aid box equipped with 
the prescribed contents at every place where contract labour is employed by him.  
20. Liability of principal employer in certain case s.— (1) If any amenity 
required to be provided under section 16, section 17, section 18 or section 19 for the 
benefit of the contract labour employed in an establishment is not provided by the 
contractor within the time prescribed therefor, such amenity shall be provided by the 
principal employer within such time as may be prescribed.  
(2) All expenses incurred by the principal employer  in providing the amenity 
may be recovered by the principal employer from the contractor either by deduction 
from any amount payable to the contractor under any contract or as a debt payable 
by the contractor. 
 
 
 
 
 
The Contract Labour (Regulation and Abolition) Act,  1970  
 
COMMENTS  
Obligation to provide amenities conferred by the Ac t to the workers is on the principal 
employer; People’ s Union for Democratic Rights v. Union of India, 1982 (3) SCC \ 235.  
 
21. Responsibility for payment of wages.— (1)   A contractor shall be | 
responsible for payment of wages to each worker emp loyed by him as contract . 
labour and such wages shall be paid before the expiry of such period as may be prescribed. 
(2)  Every principal employer shall nominate a representative duly authorised  
by him to be present at the time of disbursement of wages by the contractor and it  
shall be the duty of such representative to certify the amounts paid as wages in such 
manner as may be prescribed.  
(3) It shall be the duty of the contractor to ensur e the disbursement of 
wages in the presence of the authorised representative of the principal employer. 
(4) In case the contractor fails to make payment of  wages within the 
prescribed period or makes short payment, then the principal employer shall be 
liable to make payment of wages in full or the unpaid balance due, as the case may 
be, to the contract labour employed by the contract or and recover the amount so 
paid from the contractor either by deduction from any amount payable to the contractor 
under any contract or as a debt payable by the cont ractor. 
 
 
COMMENTS  
If the contractor fails to pay wages to his employe es engaged by him, the principal 
employer will be liable to pay the same; Cominco Be nani Zinc Ltd. v. Pappachan, 1989  
LLR 123 (Ker).  
 
 
CHAPTER VI PENAL TIESAND 
PROCEDURE  
22. Obstructions.— (1) Whoever obstructs an inspector in the discharge  of his  
duties under this Act or refuses or wilfully neglec ts to afford the inspector any 
reasonable facility for making any inspection, examination, inquiry or investigation 
authorised by or under this Act in relation to an establishment to which, or a contractor 
to whom, this Act applies, shall be punishable with imprisonment for a term which 
may extend to three months, or with fine which may extend to five hundred rupees, 
or with both.  
(2) Whoever wilfully refuses to produce on the dema nd of an inspector any 
register or other document kept in pursuance of this Act or prevents or attempts to 
prevent or does any thing which he has reason to be lieve is likely to prevent any 
person from appearing before or being examined by an inspector acting in pursuance 
of his duties under this Act, shall be punishable with imprisonment for a term which 
may extend to three months, or with fine which may extend to five hundred rupees, 
or with both.  
 
 
 
 
 
   
 
 
COMMENTS  
The word ‘wilfully’ means deliberately or intentionally or knowingly; In re: Harnam  
Singh, 1976 (2) SCC 819.  
 
23. Contravention of provisions regarding employmen t of contract 
labour.— Whoever contravenes any provision of this Act or of  any rules made 
thereunder prohibiting, restricting or regulating the employment of contract labour, 
or contravenes any condition of a licence granted under this Act, shall be punishable 
with imprisonment for a term which may extend to three months, or with fine which 
may extend to one thousand rupees, or with both, an d in the case of a continuing 
contravention with an additional fine which may extend to one hundred rupees for 
every day during which such contravention continues  after conviction for the first 
such contravention.  
 
 
COMMENTS  
(i) Consequence of non-compliance with the provisio ns of section 7 or section  
12 is penal; Deem Nath v. National Fertilizers Ltd. , 1992 LLR 46 (SC).  
(ii) Prohibition under section 10(1) cannot include  any work with the 
establishment; S.D. Powar v. Labour Enforcement Officer , (1992) 65 FLR 907 (Ker).  
(iii) Mens rea is an element of offence; S.B. Deshm ukh v. State of Maharashtra,  
1986 Lab 1C 2003 (Bom).  
 
24. Other offences.— If any person contravenes any of the provisions of this 
Act or any rules made thereunder for which no other  penalty is elsewhere 
provided, he shall be punishable with imprisonment for a term which may extend 
to three months, or with fine which may extend to one thousand rupees, or with both.  
 
 
COMMENTS  
(i) Merely because a contractor undertakes to rende r any particular service 
and engages his employees does not ipso facto to en gagement contract labour; Basanta 
Kumar Mohanty v. State of Orissa, (1992) II LLJ 190 (Ori).  
(ii) This Act does not exclude prosecution against the State or the Government or  
any of its instrumentalities; National Projects Con structions Corporation Ltd. v. Labour  
Enforcement Officer, (1991) 62 FLR 497 (Cal).  
 
25. Offences by companies.— (1) If the person committing an offence under 
this Act is a company, the company as well as every  person in charge of, and 
responsible to, the company for the conduct of its business at the time of the 
commission of the offence shall be deemed to be guilty of the offence and shall be 
liable to be proceeded against and punished accordingly:  
Provided that nothing contained in this sub-section shall render any such person 
liable to any punishment if he proves that the offe nce was committed without 
his knowledge or that he exercised all due diligenc e to prevent the commission 
of such offence.  
 
 
 
 
 
The Contract Labour (Regulation and Abolition) Act,  1970  
 
(2) Notwithstanding anything contained in sub-secti on (1), where an offence 
under this Act has been committed by a company and it is proved that the offence 
has been committed with the consent or connivance o f, or that the commission of 
the offence is attributable to any neglect on the p art of any director, manager, 
managing agent or any other officer of the company, such director, manager, managing 
agent or such other officer shall also be deemed to be guilty of that offence and shall 
be liable to be proceeded against and punished accordingly. 
Explanation.— For the purpose of this section—  
(a) “company” means any body corporate and includes  a firm or other 
association of individuals; and  
(b) “director”, in relation to a firm, means a part ner in the firm.  
 
 
COMMENTS 
Consequence of non-compliance with the provisions o f section 7 or section 12 is 
penal; Deena Nath v. National Fertilizers Ltd., 199 2 LLR 46 (SC).  
 
 
26. Cognizance of offences.— No court shall take cognizance of any offence 
under this Act except on a complaint made by, or wi th the previous sanction in 
writing of, the inspector and no court inferior to that of a Presidency Magistrate or 
a Magistrate of the first class shall try any offence punishable under this Act.  
27. Limitation of prosecutions.— No court shall take cognizance of an offence 
punishable under this Act unless the complaint thereof is made within three months 
from the date on which the alleged commission of the offence came to the knowledge 
of an inspector:  
Provided that where the offence consists of disobeying a written order made 
by an inspector, complaint thereof may be made with in six months of the date 
on which the offence is alleged to have been commit ted.  
 
 
CHAPTERVII 
MISCELLANEOUS  
28. Inspecting staff.— (1) The appropriate Government may, by notification in  
the Official Gazette, appoint such persons as it th inks fit to be inspectors for the 
purposes of this Act, and define the local limits within which they shall exercise their 
powers under this Act.  
(2) Subject to any rules made in this behalf, an in spector may, within the 
local limits for which he is appointed— 
(a) enter, at all reasonable hours, with such assis tance (if any), being persons 
in the service of the Government or any local or other public authority as he thinks 
fit, any premises or place where contract labour is  employed, for the purpose of 
examining any register or record or notices require d to be kept or exhibited by or  
 
 
 
 
 
   
 
 
under this Act or rules made thereunder, and requir e the production thereof for 
inspection;  
(b) examine any person whom he finds in any such pr emises or place and 
who, he has reasonable cause to believe, is a workman employed therein;  
(c) require any person giving out work and any work man, to give any 
information, which is in his power to give with respect to the names and 
addresses of the persons to, for and from whom the work is given out 
or received, and with respect to the payments to be made for the work;  
(d) seize or take copies of such register, record o f wages or notices or 
portions thereof as he may consider relevant in res pect of an offence 
under this Act which he has reason to believe has b een committed by 
the principal employer or contractor; and  
(e) exercise such other powers as may be prescribed .  
(3) Any person required to produce any document or thing or to give any 
information required by an inspector under sub-sect ion (2) shall be deemed to be 
legally bound to do so within the meaning of sectio n 175 and section 176 of the 
Indian Penal Code (45 of 1860).  
(4) The provisions of the Code of Criminal Procedur e, 1898 (5 of 1898), 
shall, so far as may be, apply to any search or seizure under sub-section (2) as they 
apply to any search or seizure made under the autho rity of a warrant issued under 
section 98 of the said Code.  
 
 
COMMENTS  
Senior officers must ensure compliance with the pro visions of section 21; Salal  
Hydro Electric Project v. State ofjammu & Kashmir , 1984 (3) SCC 538.  
 
 
29. Registers and other records to be maintained.— (1) Every principal 
employer and every contractor shall maintain such registers and records giving such 
particulars of contract labour employed, the nature of work performed by the contract 
labour, the rates of wages paid to the contract lab our and such other particulars in 
such form as may be prescribed.  
(2) Every principal employer and every contractor s hall keep exhibited in 
such manner as may be prescribed within the premises of the establishment where 
the contract labour is employed, notices in the prescribed form containing particulars 
about the hours of work, nature of duty and such other information as may be prescribed.  
 
 
COMMENTS  
(i) Forms cannot abridge the Act or the Rules made or directions given thereunder; 
Life Insurance Corporation of India v. Escorts Ltd., 1986 (1) SCC 264.  
 
 
 
 
 
The Contract Labour (Regulation and Abolition) Act,  1970  
 
 
(ii) An employer may enjoy benefits of section 6 of  the Labour Laws (Exemption 
from Furnishing Returns and Maintaining Registers b y certain Establishments) Act, 1988 
(51 of 1988) which came into force on 1-5-1989.  
 
30. Effect of laws and agreements inconsistent with  this Act.— (1) The 
provisions of this Act shall have effect notwithstanding anything inconsistent therewith 
contained in any other law or in the terms of any agreement or contract of service, 
or in any standing orders applicable to the establi shment whether made before or 
after the commencement of this Act:  
Provided that where under any such agreement, contract of service  or standing 
orders the contract labour employed in the establis hment are entitled to benefits 
in respect of any matter which are more favourable to them than those to which 
they would be entitled under this Act, the contract  labour shall continue to be 
entitled to the more favourable benefits in respect  of that matter , notwithstanding 
that they receive benefits in respect of other matt ers under this Act.  
(2) Nothing contained in this Act shall be construe d as precluding any such 
contract labour from entering into an agreement with the principal employer or the 
contractor, as the case may be, for granting them r ights or privileges in respect of 
any matter which are more favourable to them than t hose to which they would be 
entitled under this Act.  
 
 
COMMENTS  
(i) This Act does not override the provisions of th e Industrial Disputes Act,  
1947; FC7 Loading & Unloading Workers’ Union v. Food Corporation of India, 57 FLR 1 
(Summary).  
(ii) The provisions of this Act shall have overridi ng effect over any other law, 
agreement, contract of service or standing orders w hich is inconsistent with any of its 
provisions; T. Chandra Mohan Nair v. Fertilizers & Chemicals Travancore Ltd., 1994 LLR  
626 (Ker).  
 
31. Power to exempt in special cases.— The appropriate Government may, in 
the case of an emergency, direct, by notification in the official Gazette, that subject 
to such conditions and restrictions, if any, and for such period or periods, as may be 
specified in the notification, all or any of the provisions of this Act or the rules made 
thereunder shall not apply to any establishment or class of establishments or any 
class of contractors.  
32. Protection of action taken under this Act.— (1) No suit, prosecution or 
other legal proceedings shall lie against any registering officer, licensing officer or 
any other Government servant or against any member of the Central Board or the 
State Board, as the case may be, for anything which is in good faith done or intended 
to be done in pursuance of this Act or any rule or order made thereunder. 
 
 
 
 
 
   
 
(2) No suit or other legal proceeding shall lie aga inst the Government for 
any damage caused or likely to be caused by anything which is in good fai

Excerpt shown. Open the full act in Lexace.

‹ Prev All Haryana acts Next ›