Contract labour (R&A) Act 1970

statistics

• Year of enforcement – 1970

• Date of enforcement – 5th September

objectives

• Is to regulate the employment of contract labor

• To regulate the working conditions

• To ensure the certain other benefits available to them under the labor laws

definitions

• Contractor

• A person who undertakes to produce a given result for an establishment through contract labor

• Who supplies contract labor for any work in an establishment.

definition

• Contract labor

1. a person who is working under contractor

2. A labor who don’t have any connection with the principal employer

3. A labor who is getting his salary from the contractor

definitions

• Establishment

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

• Any office of the government

applicability

• The act is applicable whole of India & extends to

1. every establishment wherein, the number of workmen employed as contract labor is 20 or more on any day of the preceding 12 months.

2. Every contractor who employs or employed as contract labor, 20 or more workmen on any day of the preceding 12 months.

Exemptions

• This act is not applicable to those establishments where work of intermittent or casual nature is performed.

Power to make rules

• Both the state and the central governments are the appropriate authorities responsible for the administration of the act in their respective states.

• The government appoints the following officers for the purposes of carrying out the provision of this act:

• - registration officer

• - licensing officer

• - inspector

Employees covered under this act

• Every person employed in an or in connection with any work of the establishments with or without the knowledge of the principal employer is covered by this act.

• The act does not apply to the following categories,.

• Clerical

• Supervisor

• Other executives who appointed by the contractor/employer

Obligation of the employer / contractor

• The employer must register the establishment with the registering officer in the prescribed form along with the prescribed fee.

• A contractor must apply for licence with the licensing officer in the prescribed form

• A contractor cannot undertake or execute any work through contract labor if he does not have a valid lisence.

• The contractor/ employer is required to provide certain amenities for the welfare and health of the contract labor.

• Regular and timely payment of wages must be ensured by the contractor.

• The contractor must ensure to cover his employees under ESI and EPF, if the establishment is covered under ESI and EPF.

Obligation of employees

• He must act in conformity with the rules laid down.

Major offences and penalties

• Contravention of any of the provisions of the act is punishable with fine of upto Rs.1000 and or imprisonment upto to 3 months.