Contract Labour (Regulation & Abolition) Act, 1970
The main objective of this act is to regulate the contract labour and abolish it in certain establishments and circumstances
- It applies to any establishment in which twenty or more workmen are employed on any day of the of the accounting year as contract labour.
- It applies to any contractor who employs or who employed twenty or more workers on any day of the accounting year.
- Also, it does not apply to the establishments if any work performed in the intermittent nature.
- It does not apply to the establishments if any work not performed for more than one-twenty days in a year.
- It does not apply to the establishments situated in the special economic zone(SEZ).
- It does not apply to the establishments if any work performed in the seasonal nature for more than sixty days in a year.Registration of Establishments Employing Contract Labour
- Every establishment which proposes to employ contract workers for its work is required to obtain a certificate of registration from the appropriate Government.The procedure for registering establishment employed with contract labour are explained here.
- The employer should approach the Registering office with Application for registration in Form No I and along with the receipt representing payment of the prescribed fee.
- If the application for registration is fulfilled in all aspects, the registering officer can register the establishment and grant the copy of the registered certificate in Form-II.
Every certificate of registration will contain the following
- The name and address of the establishment.
- The maximum number of workers to be contracted as contract labour in the establishment.
- The type of business.
- Other important particulars, if any.
Documents Required for Registration
The required documents are to be produced by the contractor to the employer for approval. They are
- Copy of the report showing the legal status of the firm.
- Photograph of the document showing allotment of PF Code No.
- Copy of receipt/cover note/insurance policy received.
- Copy of challans showing remittance of security deposit.
- The license fee to receive the labour license.
Note: Contractors should in an application Form for engaging contract labour every month or a new entry.
Effect of Non-Registration
In case an establishment required to be enrolled under Section 7 has not been recorded within the time specified for the purpose under that section, then the punishment will be given as per section