The object of the Act is to do away with the abuses of the system of employment of contract labour. With the said object the Act regulates the employment of contract labour in certain establishment and provides for its abolition in certain circumstances.
The Contract Labour (Regulation & Abolition) Act is a Central Enactment with the respective State Rules as well as Central Rules. The Central Rules are applicable only to some industries viz. Banking, Insurance, Oil & Natural Gas, Telephone & Telegraph, Mines, Shipping and any other such Industry carried on by or under the authority of Central Government. |
| Applicability |
1) The Act is applicable to every establishment where 20 or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.
2) To every Contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen
3) The Act empowers the Central Government and the State Government to apply its provisions to any establishment or contractor employing less than twenty workmen. |
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| Principal Employer : |
Every principal employer of an establishment to which the Act applies, must get his establishment registered under the Act for the purpose of employing contract labour. |
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| Contractor : |
Every Contractor to whom the Act applies must obtain a License under the Act for the purpose of undertaking or executing any work through contract labour. |
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| Registration of Establishment : |
| The procedure of registration of an establishment are as follows: |
| a) |
If the Act is applicable to an establishment the principal employer has to make an application in the prescribed form accompanied by prescribed fees to the Registering officer for registration of the establishment under the Act. |
| b) |
Fees have to be deposited in Government Treasury at Reserve Bank of India/State Bank of India in the challan authenticated by the Assistant Labour Commissioner or the Registering Officer of the respective State. |
| c) |
The receipted copy of the challan to be attached alongwith application of registration and the same to be submitted to the Registering Officer, Office of the Commissioner of Labour of respective State. |
| d) |
If the application is complete in all respect the Registering Officer will register the establishment and issue a Certificate of Registration in the prescribed form to the Principal Employer |
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| Licensing of Contractor: |
The procedure of obtaining license is as follows : |
| a) |
The contractor to whom the Act is applicable has to make an application in the prescribed form, accompanied by necessary fee and Security Deposit to the Licensing Officer for grant of License under the Act. |
| b) |
The prescribed fee and the Security Deposit to be deposited in Government Treasury with Reserve Bank of India/State Bank of India through the separate challans as prescribed under the Rules. The challans are to be verified, endorsed by the Licensing Officer and thereafter to be deposited in the Government Treasury of the respective State. |
| c) |
The receipted copy of challans to be attached to the application for License and to be submitted to the Licensing Officer, Office of the Commissioner of Labour of the respective State. |
| d) |
The Licensing Officer after making necessary investigation may issue a License in the prescribed form containing the conditions subject to which the same is granted. |
| e) |
The License will be valid for the period specified therein and will have to be Renewed from time to time. |
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| Renewal of License : |
| The License will remain in force upto 31st December of the year for which the License is granted.
The License should be renewed every year.
The application for Renewal should be made not less than 60 days before the date on which the License expired i.e. on or before October of every year. |
| Amendment to Registration Certificate : |
| For any changes to the Registration Certificate the employer has to file an application for amendment to the Registration Certificate.
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Table of Registration fees by the Principal Employer for Contract Labour Registration Certificate revised from 27.03.2001.
| No. of Workmen |
Registration Fees |
| |
Maharashtra State |
Central Govt. |
| Upto 20 |
Rs.200/- |
Rs.60/- |
| 21 to 50 |
Rs.500/- |
Rs.150/- |
| 51 to 100 |
Rs.1000/- |
Rs.300/- |
| 101 to 200 |
Rs.2000/- |
Rs.600/- |
| 201 to 400 |
Rs.4000/- |
Rs.1200/- |
| 401 & Above |
Rs.5000/- |
Rs.1500/- |
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Table of License & Renewal fees by the contractor revised from 27.03.2001
| No. of Workmen |
License fees for |
Fine (only for delay in renewal) |
| |
Maharashtra State |
Central Govt. |
Maharashtra State |
Central Govt. |
| Upto 20 |
Rs. 100/- |
Rs.15/- |
50 % of License fees |
25% of License fees |
| 21 to 50 |
Rs. 250/- |
Rs.37.50 |
| 51 to 100 |
Rs. 500/- |
Rs.75/- |
| 101 to 200 |
Rs.1000/- |
Rs.150/- |
| 201 to 400 |
Rs.2000/- |
Rs.300/- |
| 401 & above |
Rs.2500/- |
Rs.375/- |
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| Benefits: |
The Act requires the contractor to extend the following benefits to workers: |
| a) |
Canteen, if employing 100 or more workers. |
| b) |
Rest rooms or other suitable alternative accommodation where contract labour is required to halt at night in connection with the work of an establishment. |
| c) |
Washing facilities |
| d) |
First aid boxes equipped with prescribed contents. |
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| General : |
| 1) |
Every contractor shall maintain separate attendance-cum-wage register and shall pay to its worker wages in presence of the authorised representative of the establishment.
The authorised representative of the principal employer shall affix his initials against each entry and further record a Certificate at the end of the entries in the following form " Certified that the amount shown in column no. __ has been paid to the workmen concerned in my presence"
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| 2) |
The abstract of the Act & Rules to be displayed in local language and in English at prominent place in the establishment. |
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| Penal Provisions: |
If any person obstructs an inspector or wilfully refuses to produce any document demanded by him, he would be punished with imprisonment upto 3 months, or fine upto Rs.500/- or with both.
If any person contravenes any provision of the Act or of any rules made thereunder prohibiting, restricting or regulating the employment of contract labour or contravenes any condition of a license granted under the Act, he would be punished with imprisonment upto 3 months, of fine upto Rs.1,000/- or with both, if such contravention is continued after conviction the fine would be upto Rs.100/- per day.
If any person contravenes any other provision of the Act or of the rules made thereunder, he would be punished with imprisonment upto 3 months, or with fine upto Rs.1,000/- or with both. |
