Contract Labour Act,

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

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