Object:

To regulate the employment of contract labour in certain establishment and to provide for its abolition in certain circumstances and for matters connected therewith.

Applicability:

• Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour.
• Every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.
• Registration of establishment: Principal employer employing 20 or more workers through the contractor or the contractor(s) on deposit of required fee in Form No. 1.
• Licencing of Contractor:
  • Engaging 20 or more than 20 workers and on deposit of required fee in Form IV.
  • Valid for specified period of time.
• Welfare measures to be taken by the Contractor:
  • Contract labour either one hundred or more employed by a contractor for one or more canteens shall be provided and maintained.
  • First-aid boxes.
  • Rest-room.
  • Facility of drinking water, washing facilities.
• Responsibility of Contractor:
  • To pay timely and to ensure the disbursement of wages in the presence of the authorised representative of the principal employer.
  • Rate of wages not less than the rates as fixed or prevailing for such employment as fixed by agreement.
• Liability and rights of Principal Employer:
  • To ensure provision for canteen, rest-rooms, sufficient supply of drinking water, latrines and urinals, washing facilities.
  • Principal employer entitled to recover from the contractor for providing such amenities or to make deductions from amount payable.