INDEX
TheContractLabour(regulationAndAbolition)Act,1970
SectionParticulars
INTRODUCTION
StatementOfObjectsAndReasonsAct37Of1970
AmendingActs
CH.IPRELIMINARY
1. / Shorttitle,extent,commencementandapplication.
2. / Definitions.
CH.IITHEADVISORYBOARDS
3. / CentralAdvisoryBoard.
4. / StateAdvisoryBoard.
5. / Powertoconstitutecommittees.
CH.IIIREGISTRATIONOFESTABLISHMENTSEMPLOYINGCONTRACTLABOUR
6. / Appointmentofregisteringofficers.
7. / Registrationofcertainestablishments.
8. / Revocation ofregistration incertain cases.
9. / Effectofnon-registration.
10. / Prohibitionofemploymentofcontractlabour.
CH.IVLICENSINGOFCONTRACTORS
11. / Appointmentoflicensingofficers.
12. / Licensingofcontractors.
13. / Grantoflicences.
14. / Revocation,suspensionandamendmentoflicences.
15. / Appeal.
CH.VWELFAREANDHEALTHOFCONTRACTLABOUR
16. / Canteens.
17. / Rest-rooms.
18. / Otherfacilities.
19. / First-aidfacilities.
20. / Liabilityofprincipalemployerincertaincases.
21. / Responsibilityforpaymentofwages.
Sec. ParticularsPage
CH.VIPENALTIESANDPROCEDURE
22. / Obstructions.23. / Contraventionofprovisionsregarding
employmentofcontractlabour.
24. / Otheroffences.
25. / Offencesbycompanies.
26. / Cognizanceofoffences.
27. / Limitationofprosecutions.
CH.VIIMISCELLANEOUS
28. / Inspectingstaff.
29. / Registersandotherrecordstobemaintained.
30. / EffectoflawsandagreementsinconsistentwiththisAct.
31. / Powertoexemptinspecialcases.
32. / Protectionof actiontakenunderthisAct.
33. / Powertogivedirections.
34. / Powertoremovedifficulties.
35. / Powertomakerules.
COMMENTS
THECONTRACTLABOUR(REGULATION ANDABOLITION)ACT,1970
INTRODUCTION
Employment of contract labour has been a cause of various problems. The questionofitsabolitionhadbeenunderconsiderationofGovernment.IntheSecond FiveYearPlan,thePlanningCommissionmadecertainrecommendations,namely, undertaking of studies to ascertain the extent of the problem of contract labour, progressiveabolitionofthesystemofcontractlabourandimprovementofservice conditionsofcontractlabour. Thematterwasdiscussedatvariousmeetingsof Tripartite Committees at which State Governments were also represented and the general consensus of opinion was that the system of contract labour should be abolishedwhereverpossibleandpracticable,andthatincaseswherethesystemof contractlabourcouldnotbeabolishedaltogether,theworkingconditionsofcontract labourcouldberegulatedsoastoensurepaymentofwagesandprovisionofessential amenities. ToimplementtherecommendationsofthePlanningCommissionand consensusopinionofthe TripartiteCommitteestheContractLabour(Regulation andAbolition)BillwasintroducedintheParliament.
STATEMENTOFOBJECTSANDREASONS
The system of employment of contract labour lends itself to various abuses. ThequestionofitsabolitionhasbeenundertheconsiderationofGovernmentfora longtime.IntheSecondFive YearPlan,thePlanningCommissionmadecertain recommendations, namely, undertaking of studies to ascertain the extent of the problemofcontractlabour,progressiveabolitionofthesystemandimprovementof serviceconditionsof contractlabourwhere theabolitionwas notpossible.The matterwasdiscussedatvariousmeetingsof TripartiteCommitteesatwhichthe State Governments were also representedand the generalconsensus of opinion wasthatthesystemshouldbeabolishedwhereverpossibleandpracticableandthat incaseswherethissystemcouldnotbeabolishedaltogether,theworkingconditions ofcontractlabourshouldberegulatedsoastoensurepaymentofwagesandprovision ofessentialamenities.
2.TheproposedBillaimsattheabolitionofcontractlabourinrespectof such categories as may be notified by the appropriate Government in the light of certaincriteriathathavebeenlaiddown,andatregulatingtheserviceconditionsof contractlabourwhereabolitionisnotpossible.TheBillprovidesforthesettingupof
Advisory Boards of a tripartite character, representing various interests, to advise theCentralandStateGovernmentsinadministeringthelegislationandregistration ofestablishmentsandcontractors.UndertheSchemeoftheBill,theprovisionand maintenance of certain basic welfare amenities for contract labour, like drinking water and first-aid facilities, and in certain cases rest-rooms and canteens, have beenmadeobligatory.Provisionshavealsobeenmadetoguardagainstdefaultsin thematterofwagepayment.
ACT37OF1970
TheContractLabour(RegulationandAbolition)Billwaspassedbyboththe HousesofParliamentandsubsequentlyreceivedtheassentofthePresidenton5th September,1970undertheshorttitleandthenumbersTHECONTRACTLABOUR (REGULATIONANDABOLITION)ACT,1970(37of1970).Itcameintoeffect on10thFebruary,1971.
AMENDINGACTS
1.TheContractLabour(RegulationandAbolition)(Amendment)Act,1986(14of
1986).
2.TheDelegatedLegislationProvisions(Amendment)Act,2004(4of2005).
TheContractLabour(RegulationandAbolition)Act,1970
THECONTRACTLABOUR(REGULATION ANDABOLITION)ACT,1970
(37of1970)
[5thSeptember,1970] AnActtoregulatetheemploymentofcontractlabourincertain establishmentsandtoprovideforitsabolitionincertaincircumstancesand
formattersconnectedtherewith.
BEit enacted by Parliament in theTwenty-firstYear of the Republic of Indiaasfollows:—
CHAPTERI PRELIMINARY
1.Shorttitle,extent,commencementandapplication.—(1)ThisActmay
becalledtheContractLabour(RegulationandAbolition)Act,1970.
(2)It extends to the whole of India.
(3)Itshallcomeintoforceonsuchdate1astheCentralGovernmentmay, bynotificationintheOfficialGazette,appointanddifferentdatesmaybeappointed fordifferentprovisionsofthisAct.
(4)Itapplies—
(a)toeveryestablishmentinwhichtwentyormoreworkmenareemployed orwereemployedonanydayoftheprecedingtwelvemonthsascontractlabour;
(b)toeverycontractorwhoemploysorwhoemployedonanydayofthe precedingtwelvemonthstwentyormoreworkmen:
ProvidedthattheappropriateGovernmentmay,aftergivingnotlessthantwo months’noticeofitsintentionsotodo,bynotificationintheOfficialGazette, applytheprovisionsofthisActtoanyestablishmentorcontractoremploying suchnumberofworkmenlessthantwentyasmaybespecifiedinthenotification. (5) (a)Itshallnotapplytoestablishmentsinwhichworkonlyofan
intermittentorcasualnatureisperformed.
(b)Ifaquestionariseswhetherworkperformedinanestablishmentisof anintermittentorcasualnature,theappropriateGovernmentshalldecidethatquestion
afterconsultationwiththeCentralBoardor,asthecasemaybe,aStateBoard,and
itsdecisionshallbefinal.
Explanation.—Forthepurposeofthissub-section,workperformedinan establishmentshallnotbedeemedtobeofanintermittentnature—
(i) ifitwasperformedformorethanonehundredandtwentydaysin
theprecedingtwelvemonths,or
(ii) ifitisofaseasonalcharacterandisperformedformorethansixty
daysinayear.
1. Cameintoforceon10-2-1971,videG.S.R.190,dated1stFebruary,1971,publishedinthe
GazetteofIndia,Extra.,Pt.II,Sec.3(i),dated10thFebruary,
COMMENTS
TheActisapieceofsociallegislationforthewelfareoflabourerswhoseconditions ofservicearenotatallsatisfactoryanditshould,therefore,beliterallyconstrued;Lionel EdwardLtd.v.LabourEnforcementOfficer,1977Lab1C1037(Cal).
2.Definitions.—(1)InthisAct,unlessthecontextotherwiserequires,—
1(a)“appropriateGovernment”means,—
(i) inrelationtoanestablishmentinrespectofwhichtheappropriate GovernmentundertheIndustrialDisputesAct,1947(14of1947), istheCentralGovernment,theCentralGovernment;
(ii) inrelationtoanyotherestablishment,theGovernmentoftheState inwhichthatotherestablishmentissituated;]
(b)aworkmanshallbedeemedtobeemployedas“contractlabour”inor inconnectionwiththeworkofanestablishmentwhenheishiredinor inconnectionwithsuchworkbyorthroughacontractor,withorwithout theknowledgeoftheprincipalemployer;
(c)“contractor”,inrelationtoanestablishment,meansapersonwho undertakestoproduceagivenresultfortheestablishment,otherthana meresupplyofgoodsorarticlesofmanufacturetosuchestablishment, throughcontractlabourorwhosuppliescontractlabourforanyworkof theestablishmentandincludesasub-contractor;
(d)“controlledindustry”meansanyindustrythecontrolofwhichbythe UnionhasbeendeclaredbyanyCentral Acttobeexpedientinthe publicinterest;
(e)“establishment”means—
(i) anyofficeordepartmentoftheGovernmentoralocalauthority,or
(ii) any place where any industry, trade, business, manufacture or occupationiscarriedon;
(f)“prescribed”meansprescribedbyrulesmadeunderthisAct; (g)“principalemployer”means—
(i) inrelationtoanyofficeordepartmentoftheGovernmentoralocal authority,theheadofthatofficeordepartmentorsuchotherofficer astheGovernmentorthelocalauthority,asthecasemaybe,may specifyinthisbehalf,
(ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the FactoriesAct,1948(63of1948),thepersonsonamed,
(iii)ina mine,theowneroragentofthemineandwhereapersonhas beennamedasthemanagerofthemine,thepersonsonamed,
(iv)inanyotherestablishment,anypersonresponsibleforthesupervision andcontroloftheestablishment.
1.Subs,byAct14of1986(w.r.e.f.28-1-1986).
TheContractLabour(RegulationandAbolition)Act,1970
Explanation.—For thepurpose of sub-clause(iii)of thisclause,theexpressions “mine”,“owner”and“agent”shallhavethemeaningsrespectivelyassignedtothem inclause(j),clause(1) andclause(c)of sub-section(1) of section2 of theMines Act,1952(35of1952);
(h)“wages”shallhavethemeaningassignedtoitinclause(vi)ofsection2 ofthePaymentofWagesAct,1936(4of1936);
(i)“workman”meansanypersonemployedinorinconnectionwiththe workofanyestablishmenttodoanyskilled,semi-skilledorun-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, but does not includeanysuchperson—
(A) whoisemployedmainlyinamanagerialoradministrative capacity;or
(B) who, being employed in a supervisory capacity draws wages exceedingfivehundredrupeespermensemorexercises,eitherby the nature of the duties attached to the office or by reason of the powersvestedinhim,functionsmainlyofamanagerialnature;or
(C)whoisanout-worker,thatistosay,apersontowhomanyarticles ormaterialsaregivenoutbyoronbehalfoftheprincipalemployer to be made up, cleaned, washed, altered, ornamented, finished, repaired,adaptedorotherwiseprocessedforsaleforthepurposes ofthetradeorbusinessoftheprincipalemployerandtheprocessis to be carriedout eitherin the home of the out-worker or in some otherpremises,not beingpremisesunder thecontroland managementoftheprincipalemployer.(2)Anyreferenceinthis ActtoalawwhichisnotinforceintheStateofJammuandKashmirshall, in relation to that State, be construed as a reference to the correspondinglaw,ifany,inforceinthat State.
COMMENTS
If the workman is not hired through a contractor holding a valid licence under the Act, he would be a workman employed by the management itself; Workmen of Best & CromptonIndustriesLtd.v.BestandCromptonEngineeringLtd.,(1985)IILLN169(Mad).
CHAPTERII THEADVISORYBOARDS
3.CentralAdvisoryBoard.—(1)TheCentralGovernmentshall,assoonas
maybe,constituteaboardtobecalledtheCentralAdvisoryContractLabourBoard (hereinafterreferredtoastheCentralBoard)toadvisetheCentralGovernmenton suchmattersarisingoutoftheadministrationofthisActasmaybereferredtoitand tocarryoutotherfunctionsassignedtoitunderthisAct.
(2)TheCentralBoardshallconsistof—
(a)aChairmantobeappointedbytheCentralGovernment; (b)theChiefLabourCommissioner(Central),ex-officio;
(c)suchnumberofmembers,notexceedingseventeenbutnotlessthan
eleven, as the Central Government may nominate to represent that Government,theRailways,thecoalindustry, theminingindustry, the contractors,theworkmenandany0therinterestswhich,intheopinion oftheCentralGovernment,oughttoberepresentedontheCentralBoard.
(3)Thenumberofpersonstobeappointedasmembersfromeachofthe categories specified in sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and themanneroffillingvacanciesamong,themembersoftheCentralBoardshallbe suchasmaybeprescribed:
Provided that the number of members nominated to represent the workmen shall not be less than the number of members nominated to represent the principalemployersandthecontractors.
4.StateAdvisoryBoard.—(1)TheStateGovernmentmayconstituteaboard tobecalledtheStateAdvisoryContractLabourBoard(hereinafterreferredtoas theStateBoard)toadvisetheStateGovernmentonsuchmattersarisingoutofthe administrationofthisActasmaybereferredtoitandtocarryoutotherfunctions assignedtoitunderthisAct.
(2)TheStateBoardshallconsistof—
(a)aChairmantobeappointedbytheStateGovernment;
(b)theLabourCommissioner,exofficio,orinhisabsenceanyotherofficer nominatedbytheStateGovernmentinthatbehalf;
(c)suchnumberofmembers,notexceedingelevenbutnotlessthannine, astheStateGovernmentmaynominatetorepresentthatGovernment, theindustry,thecontractors,theworkmenandanyotherinterestswhich, intheopinionoftheStateGovernment,oughttoberepresentedonthe StateBoard.
(3)Thenumberofpersonstobeappointedasmembersfromeachofthe categories specified in sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the State Board shall be suchasmaybeprescribed:
Provided that the number of members nominated to represent the workmen shall not be less than the number of members nominated to represent the principalemployersandthecontractors.
5.Powertoconstitutecommittees.—(1)TheCentralBoardortheState Board,asthecasemaybe,mayconstitutesuchcommitteesandforsuchpurposeor purposesasitmaythinkfit.
TheContractLabour(RegulationandAbolition)Act,1970
(2)Thecommitteeconstitutedundersub-section(1)shallmeetatsuch timesandplacesandshallobservesuchrulesofprocedureinregardtothetransaction ofbusinessatitsmeetingsasmaybeprescribed.
(3)Themembersofacommitteeshallbepaidsuchfeesandallowances forattendingitsmeetingsasmaybeprescribed:
Providedthatnofeesshallbepayabletoamemberwhoisanofficerof
Governmentorofanycorporationestablishedbyanylawforthetimebeinginforce.
CHAPTERIII
REGISTRATIONOFESTABLISHMENTSEMPLOYINGCONTRACTLABOUR
6.Appointmentofregisteringofficers.—TheappropriateGovernmentmay, byanordernotifiedintheOfficialGazette—
(a)appointsuchpersons,beingGazettedOfficersofGovernment,asit thinksfittoberegisteringofficersforthepurposesofthisChapter;and
(b)definethelimits,withinwhicharegisteringofficershallexercisethe powers conferred on him by or under thisAct.
7.Registrationofcertainestablishments.—(1)Everyprincipalemployerof anestablishmenttowhichthisActappliesshall,withinsuchperiodastheappropriate Governmentmay,bynotificationintheOfficialGazette,fixinthisbehalfwithrespect toestablishmentsgenerallyorwithrespecttoanyclassofthem,makeanapplication totheregisteringofficerintheprescribedmannerforregistrationoftheestablishment: Providedthat theregisteringofficermayentertainanysuchapplicationfor registration after expiry of the period fixed in this behalf, if the registering officer is satisfied that the applicant was prevented by sufficient cause from makingtheapplicationintime.
(2)Iftheapplicationforregistrationiscompleteinallrespects,theregistering officer shall register the establishment and issue to the principal employer of the establishmenta certificateof registrationcontainingsuch particularsas may be prescribed.
COMMENTS
(i)Contraventionoftheprovisionsofsection7isanoffence;DeenaNathv. NationalFertilizers,1992LLR46.
(ii)AnestablishmentofContractLabourrequiredregistrationundersection7 oftheAct;Anapalv.J.S.E.B.,2003(2)LLJ335(Thar).
8.Revocationofregistrationincertaincases.—Iftheregisteringofficeris satisfied, either on a reference made to him in this behalf or otherwise, that the registration of any establishment has been obtained by misrepresentation or suppression of any materialfact, or that for any other reason the registration has becomeuselessorineffectiveand,therefore,requirestoberevoked,theregistering
officermay,aftergivinganopportunitytotheprincipalemployeroftheestablishment tobeheardandwiththepreviousapprovaloftheappropriateGovernment,revoke theregistration.
9.Effectofnon-registration.—Noprincipalemployerofanestablishment,to whichthisActapplies,shall—
(a)inthecaseofanestablishmentrequiredtoberegisteredundersection
7,butwhichhasnotbeenregisteredwithinthetimefixedforthepurposeunderthat section,
(b)inthecaseofanestablishmenttheregistrationinrespectofwhichhas beenrevokedundersection8,employcontractlabourintheestablishmentafterthe expiry of the period referred to in clause (a) or after the revocation of registration referredtoinclause(b),asthecasemaybe.
10.Prohibitionofemploymentofcontractlabour.—(1)Notwithstanding anythingcontainedinthisAct,theappropriateGovernmentmay,afterconsultation withtheCentralBoardor,asthecasemaybe,aStateBoard,prohibit,bynotification intheOfficialGazette,employmentofcontractlabourinanyprocess,operationor otherworkinanyestablishment.
(2)Beforeissuinganynotificationundersub-section(1)inrelationtoan establishment, the appropriate Government shall have regard to the conditions of work and benefits provided for the contract labour in that establishment and other relevantfactors,suchas—
(a)whethertheprocess,operationorotherworkisincidentalto,ornecessary fortheindustry,trade,business,manufactureoroccupationthatiscarried onintheestablishment;
(b)whetheritisofperennialnature,thatistosay,itisofsufficientduration havingregardtothenatureofindustry,trade,business,manufactureor occupationthatiscarriedoninthatestablishment;
(c)whetheritisdoneordinarilythroughregularworkmeninthat establishmentoranestablishmentsimilarthereto;
(d)whetheritissufficienttoemployconsiderablenumberofwhole-time workmen.
Explanation.—Ifaquestionariseswhetheranyprocessoroperationorotherwork isofperennialnature,thedecisionoftheappropriateGovernmentthereonshall befinal.
COMMENTS
(i)Itisthescrutinyofindividualestablishmentwhichiscontemplatedbysection
10oftheAct.Thereisnohostilediscrimination;NationalOrganicChemicalIndustryLtd. v.StateofMaharashtra,(1989)IILLN817(Bom).
TheContractLabour(RegulationandAbolition)Act,1970
(ii)ThepoweroftheappropriateGovernmentundersection10isnotaffectedor curtailedinanymannerbysection119oftheFactoriesAct,1948;GovernmentofAndhra Pradeshv.BhadarachalamPaperBoardLtd.,(1990)76FJR58(AP).
(iii)Thedecisionregardingtheprohibitionofemploymentofcontractlabouris no doubt with the appropriate Government but this decision is subject to judicial review; ZenithIndustrialServicev.UnionofIndia,(1990)1LLJ38(Ori).
(iv)ConsultationwiththeCentralAdvisoryBoardismandatory;TataRefractories
Ltd.v.UnionofIndia,(1992)IILLJ810(Ori).
(v)TheActdoesnotprovideforatotalabolitionofcontractlabourbutitprovides for abolition of contract labour in appropriate cases; Deena Nath v. National Fertilizers Ltd.,1992LLR46(SC).
(vi)Thereisnoautomaticabsorptionofthelabourersintheregularemployment; T.ChandraMohanNairv.FertilizersChemicalsTravancoreLtd.,1994LLR626(Ker). (vii) Provisionsofsection10(2)ofthisActaremandatory.AmendmentActNo.14
of1988cannothaveretrospectiveeffect;FCIClassIVEmployees’Unionv.F.CJ.,(1994)II
LLJ102(PH).
(viii) The primary object of the Act is to stop exploitation of contract labourers by contractor or establishment. The Act does not purport to abolish contract labour in its entirety;R.K.Pandav.SteelAuthorityofIndia,(1994)69FLR256(SC).
(ix)ItisonlytheappropriateGovernmentwhichhastheauthoritytoabolish contract labour system and not the court including the industrial adjudicator; Gujarat ElectricityBoardv.HindMazdoorSabha,1995LLR552(SC).
(x)Anindustrialdisputecanberaisedforabolitionofcontractlaboursystem; GujaratElectricityBoardv.HindMazdoorSabha,1995LLR552(SC).
(xi)Onissuanceofprohibitionundersection10(1)oftheActprohibiting employment of contract labour or otherwise, in an industrial dispute brought before it by any contract labour in regard to conduct of service Industrial Adjudicator will have to be interpose on the ground of having undertaken to produce any given result for the establishment or for supply of contract labour for work of the establishment under a genuinecontractorisamereruse/camouflagelegislationssoastodeprivetheworkersof thebenefitsthereunder;RajeshKumarv.UnionofIndia,2003(2)LLJ102(Del).
CHAPTERIV LICENSINGOFCONTRACTORS
11.Appointmentoflicensingofficers.—TheappropriateGovernmentmay,by
anordernotifiedintheOfficialGazette,—
(a)appointsuchpersons,beingGazettedOfficersofGovernment,asit thinksfittobelicensingofficersforthepurposesofthisChapter;and
(b)definethelimits,withinwhichalicensingofficershallexercisethepowers conferredonlicensingofficersbyorunderthisAct.
12.Licensingofcontractors.—(1)Witheffectfromsuchdateastheappropriate Government may, by notification in the Official Gazette, appoint, no contractor to whomthisActapplies,shallundertakeorexecuteanyworkthroughcontractlabour
exceptunderandinaccordancewithalicenceissuedinthatbehalfbythelicensing officer.
(2)SubjecttotheprovisionsofthisAct,alicenceundersub-section(1) maycontainsuchconditionsincluding,inparticular,conditionsastohoursofwork, fixation of wages and other essential amenities in respect of contract labour as the appropriate Government may deem fit to impose in accordance with the rules, if any,madeundersection35andshallbeissuedonpaymentofsuchfeesandonthe depositofsuchsum,ifany,assecurityforthedueperformanceoftheconditionsas maybeprescribed.
COMMENTS
(i)Bothconditionsofobtainingacertificateofregistrationandemploying labourthroughalicensedcontractorbytheprincipalemployermustbesatisfied;Food CorporationofIndiaWorkers’Unionv.FoodCorporationofIndia,1990LLR589(Guj). (ii) Theemployeesengagedbyacontractortorunacanteenforacompanydo
notbecomeemployeesofthecompanyifthecontractorfailstoregisterthecontractwith
theappropriateauthorities;GeneralLabourUnion(RedFlag)v.KM.Desai,1990LLR
208(Bom).
(iii)Licensingisonlyaregulatorymeasureanditdoesnotcreateanyprivilege; SteelAuthorityofIndiav.SteelAuthorityofIndiaContractWorkmen’sUnion,(1990)64
FLR573(Karn).
(iv)Nospecialqualificationisrequiredforapersonwhoseeksalicence;Steel
AuthorityofIndiav.SteelAuthorityofIndiaContractWorkmen’sUnion,(1990)64FLR
573(Karn).
13.Grantoflicences.—(1)Everyapplicationforthegrantofalicenceunder sub-section(1)ofsection12shallbemadeintheprescribedformandshallcontain the particulars regarding the location of the establishment, the nature of process, operation or work for which contractlabour is to be employed and such other particularsasmaybeprescribed.
(2)Thelicensingofficermaymakesuchinvestigationinrespectofthe applicationreceivedundersub-section(1)andinmakinganysuchinvestigationthe licensingofficershallfollowsuchprocedureasmaybeprescribed.
(3)AlicencegrantedunderthisChaptershallbevalidfortheperiodspecified therein and may be renewed from time to time for such period and on payment of suchfeesandonsuchconditionsasmaybeprescribed.
14.Revocation,suspensionandamendmentoflicences.—(1)Ifthelicensing officer is satisfied, either on a reference made to him in this behalf or otherwise,that—
(a)a licence granted under section 12 has been obtained bymis-representationorsuppressionofanymaterialfact,or
TheContractLabour(RegulationandAbolition)Act,1970
(b)theholderofalicencehas,withoutreasonablecause,failedtocomply withtheconditionssubjecttowhichthelicencehasbeengrantedorhas contravenedanyoftheprovisionsofthisActortherulesmadethereunder, then,withoutprejudicetoanyotherpenaltytowhichtheholderofthe licencemaybeliableunderthis Act,thelicensingofficermay,after givingtheholderofthelicenceanopportunityofshowingcause,revoke orsuspendthelicenceorforfeitthesum,ifany,oranyportionthereof depositedassecurityforthedueperformanceoftheconditionssubject towhichthelicencehasbeengranted.
(2)Subjecttoanyrulesthatmaybemadeinthisbehalf,thelicensingofficer mayvaryoramendalicencegrantedundersection12.
15.Appeal.—(1)Anypersonaggrievedbyanordermadeundersection7,section
8,section12orsection14may,withinthirtydaysfromthedateonwhichtheorder is communicated to him, prefer an appeal to an appellate officer who shall be a personnominatedinthisbehalfbytheappropriateGovernment:
Providedthattheappellateofficermayentertaintheappealaftertheexpiryof thesaidperiodofthirtydays,ifheissatisfiedthattheappellantwasprevented bysufficientcausefromfilingtheappealintime.
(2)Onreceiptofanappealundersub-section(1),theappellateofficer shall,aftergivingtheappellantanopportunityofbeinghearddisposeoftheappeal asexpeditiouslyaspossible.
COMMENTS
Rules33to39oftheContractLabour(RegulationandAbolition)CentralRules,
1971laydowntheprocedurerelatingtoappeals.
CHAPTERV
WELFAREANDHEALTHOFCONTRACTLABOUR
16.Canteens.—(1)TheappropriateGovernmentmaymakerulesrequiringthat ineveryestablishment—
(a)towhichthisActapplies,
(b)whereinworkrequiringemploymentofcontractlabourislikelyt<
continueforsuchperiodasmaybeprescribed,and
(c)whereincontractlabournumberingonehundred ormoreIordinarily employedbyacontractor,oneormorecanteensshallbeprovidedand maintainedby the contractorfor th use of such contractlabour.
(2)Withoutprejudicetothegeneralityoftheforegoingpower,suchrules mayprovidefor—
(a)thedatebywhichthecanteensshallbeprovided;
(b)thenumberofcanteensthatshallbeprovided,andthestandardsin
respectofconstruction,accommodation,furnitureandotherequipment ofthecanteens;and
(c)thefoodstuffswhichmaybeservedthereinandthechargeswhichmay bemadetherefor.
17.Rest-rooms.—(1)Ineveryplacewhereincontractlabourisrequiredtohalt atnightinconnectionwiththeworkofanestablishment—
(a)towhichthisActapplies,and
(b)inwhichworkrequiringemploymentofcontractlabourislikelytocontinue for such period as may be prescribed, there shall be provided and maintained by the contractor for the use of the contract labour such numberofrest-roomsorsuchothersuitablealternativeaccommodation withinsuchtimeasmaybeprescribed.
(2)Therest-roomsorthealternativeaccommodationtobeprovidedunder sub-section(1)shallbesufficientlylightedandventilatedandshallbemaintainedin acleanandcomfortablecondition.
18.Otherfacilities.—Itshallbethedutyofeverycontractoremployingcontract labourinconnectionwiththeworkofanestablishmenttowhichthisActapplies,to provideandmaintain—
(a)asufficientsupplyofwholesomedrinkingwaterforthecontractlabour atconvenientplaces;
(b)asufficientnumberoflatrinesandurinalsoftheprescribedtypesso situatedastobeconvenientandaccessibletothecontractlabourinthe establishment;and
(c)washingfacilities.
19.First-aidfacilities.—Thereshallbeprovidedandmaintainedbythecontractor soastobereadilyaccessibleduringallworkinghoursafirst-aidboxequippedwith theprescribedcontentsateveryplacewherecontractlabourisemployedbyhim.
20.Liabilityofprincipalemployerincertaincases.—(1)Ifanyamenity requiredtobeprovidedundersection16,section17,section18orsection19forthe benefit of the contract labour employed in an establishment is not provided by the contractorwithinthetimeprescribedtherefor,suchamenityshallbeprovidedbythe principalemployerwithinsuchtimeasmaybeprescribed.
(2)Allexpensesincurredbytheprincipalemployerinprovidingtheamenity mayberecoveredbytheprincipalemployerfromthecontractoreitherbydeduction fromanyamountpayabletothecontractorunderanycontractorasadebtpayable bythecontractor.
TheContractLabour(RegulationandAbolition)Act,1970
COMMENTS
Obligationtoprovideamenitiesconferredbythe Acttotheworkersisontheprincipal employer;People’sUnionforDemocraticRightsv.UnionofIndia,1982(3)SCC\235.
21.Responsibilityforpaymentofwages.—(1) Acontractorshallbe| responsibleforpaymentofwagestoeachworkeremployedbyhimascontract. labourandsuchwagesshallbepaidbeforetheexpiryofsuchperiodasmaybeprescribed. (2) Everyprincipalemployershallnominatearepresentativedulyauthorised
byhimtobepresentatthetimeofdisbursementofwagesbythecontractorandit
shallbethedutyofsuchrepresentativetocertifytheamountspaidaswagesinsuch mannerasmaybeprescribed.
(3)Itshallbethedutyofthecontractortoensurethedisbursementof wages in the presence of the authorised representative of the principal employer.
(4)Incasethecontractorfailstomakepaymentofwageswithinthe prescribed period or makes short payment, then the principal employer shall be liabletomakepaymentofwagesinfullortheunpaidbalancedue,asthecasemay be, to the contract labour employed by the contractor and recover the amount so paidfromthecontractoreitherbydeductionfromanyamountpayabletothecontractor underanycontractorasadebtpayablebythecontractor.
COMMENTS
If the contractor fails to pay wages to his employees engaged by him, the principal employerwillbeliabletopaythesame;ComincoBenaniZincLtd.v.Pappachan,1989
LLR123(Ker).
CHAPTERVI PENALTIESANDPROCEDURE
22.Obstructions.—(1)Whoeverobstructsaninspectorinthedischargeofhis
dutiesunderthis Actorrefusesorwilfullyneglectstoaffordtheinspectorany reasonablefacilityformakinganyinspection,examination,inquiryorinvestigation authorisedbyorunderthisActinrelationtoanestablishmenttowhich,oracontractor towhom,thisActapplies,shallbepunishablewithimprisonmentforatermwhich mayextendtothreemonths,orwithfinewhichmayextendtofivehundredrupees, orwithboth.
(2)Whoeverwilfullyrefusestoproduceonthedemandofaninspectorany registerorotherdocumentkeptinpursuanceofthisActorpreventsorattemptsto prevent or does any thing which he has reason to believeis likelyto prevent any personfromappearingbeforeorbeingexaminedbyaninspectoractinginpursuance ofhisdutiesunderthisAct,shallbepunishablewithimprisonmentforatermwhich mayextendtothreemonths,orwithfinewhichmayextendtofivehundredrupees, orwithboth.
COMMENTS
Theword‘wilfully’meansdeliberatelyorintentionallyorknowingly;Inre:Harnam
Singh,1976(2)SCC819.
23.Contraventionofprovisionsregardingemploymentofcontract labour.—Whoevercontravenesanyprovisionofthis Actorofanyrulesmade thereunderprohibiting,restrictingorregulatingtheemploymentofcontractlabour, orcontravenesanyconditionofalicencegrantedunderthisAct,shallbepunishable withimprisonmentforatermwhichmayextendtothreemonths,orwithfinewhich may extend to one thousand rupees, or with both, and in the case of a continuing contraventionwithanadditionalfinewhichmayextendtoonehundredrupeesfor every day during which such contravention continues after conviction for the first suchcontravention.
COMMENTS
(i)Consequenceofnon-compliancewiththeprovisionsofsection7orsection
12ispenal;DeemNathv.NationalFertilizersLtd.,1992LLR46(SC).
(ii)Prohibitionundersection10(1)cannotincludeanyworkwiththe establishment;S.D.Powarv.LabourEnforcementOfficer,(1992)65FLR907(Ker).
(iii)Mensreaisanelementofoffence;S.B.Deshmukhv.StateofMaharashtra,
1986Lab1C2003(Bom).
24.Otheroffences.—Ifanypersoncontravenesanyoftheprovisionsofthis Act or any rules made thereunder for which no other penalty is elsewhere provided, he shall be punishable with imprisonment for a term which may extend tothreemonths,orwithfinewhichmayextendtoonethousandrupees,orwithboth.
COMMENTS
(i)Merelybecauseacontractorundertakestorenderanyparticularservice and engages his employees does not ipso facto to engagement contract labour; Basanta KumarMohantyv.StateofOrissa,(1992)IILLJ190(Ori).
(ii)ThisActdoesnotexcludeprosecutionagainsttheStateortheGovernmentor
anyofitsinstrumentalities;NationalProjectsConstructionsCorporationLtd.v.Labour
EnforcementOfficer,(1991)62FLR497(Cal).
25.Offencesbycompanies.—(1)Ifthepersoncommittinganoffenceunder this Actisacompany,thecompanyaswellaseverypersoninchargeof,and responsible to, the company for the conduct of its business at the time of the commissionoftheoffenceshallbedeemedtobeguiltyoftheoffenceandshallbe liabletobeproceededagainstandpunishedaccordingly:
Providedthat nothingcontainedinthissub-sectionshallrenderanysuchperson liabletoanypunishmentifheprovesthattheoffencewascommittedwithout hisknowledgeorthatheexercisedallduediligencetopreventthecommission ofsuchoffence.
TheContractLabour(RegulationandAbolition)Act,1970
(2)Notwithstandinganythingcontainedinsub-section(1),whereanoffence underthisActhasbeencommittedbyacompanyanditisprovedthattheoffence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of any director, manager, managingagentoranyotherofficerofthecompany,suchdirector,manager,managing agentorsuchotherofficershallalsobedeemedtobeguiltyofthatoffenceandshall beliabletobeproceededagainstandpunishedaccordingly.
Explanation.—Forthepurposeofthissection—
(a)“company”meansanybodycorporateandincludesafirmorother associationofindividuals;and
(b)“director”,inrelationtoafirm,meansapartnerinthefirm.
COMMENTS
Consequence of non-compliance with the provisions of section 7 or section 12 is penal;DeenaNathv.NationalFertilizersLtd.,1992LLR46(SC).
26.Cognizanceofoffences.—Nocourtshalltakecognizanceofanyoffence underthis Actexceptonacomplaintmadeby,orwiththeprevioussanctionin writingof,theinspectorandnocourtinferiortothatofaPresidencyMagistrateor aMagistrateofthefirstclassshalltryanyoffencepunishableunderthisAct.
27.Limitation of prosecutions.—No court shall take cognizance of an offence punishableunderthisActunlessthecomplaintthereofismadewithinthreemonths fromthedateonwhichtheallegedcommissionoftheoffencecametotheknowledge ofaninspector:
Providedthatwheretheoffenceconsistsofdisobeyingawrittenordermade byaninspector,complaintthereofmaybemadewithinsixmonthsofthedate onwhichtheoffenceisallegedtohavebeencommitted.
CHAPTERVII MISCELLANEOUS
28.Inspectingstaff.—(1)TheappropriateGovernmentmay,bynotificationin
the Official Gazette, appoint such persons as it thinks fit to be inspectors for the purposesofthisAct,anddefinethelocallimitswithinwhichtheyshallexercisetheir powersunderthisAct.
(2)Subjecttoanyrulesmadeinthisbehalf,aninspectormay,withinthe locallimitsforwhichheisappointed—
(a)enter,atallreasonablehours,withsuchassistance(ifany),beingpersons intheserviceoftheGovernmentoranylocalorotherpublicauthorityashethinks fit, any premises or place where contract labour is employed, for the purpose of examininganyregisterorrecordornoticesrequiredtobekeptorexhibitedbyor
underthis Actorrulesmadethereunder,andrequiretheproductionthereoffor inspection;
(b)examineanypersonwhomhefindsinanysuchpremisesorplaceand who,hehasreasonablecausetobelieve,isaworkmanemployedtherein;
(c)requireanypersongivingoutworkandanyworkman,togiveany information,whichisinhispowertogivewithrespecttothenamesand addresses of the persons to, for and from whom the work is given out orreceived,andwithrespecttothepaymentstobemadeforthework;
(d)seizeortakecopiesofsuchregister,recordofwagesornoticesor portions thereof as he may consider relevant in respect of an offence underthisActwhichhehasreasontobelievehasbeencommittedby theprincipalemployerorcontractor;and
(e)exercisesuchotherpowersasmaybeprescribed.
(3)Anypersonrequiredtoproduceanydocumentorthingortogiveany information required by an inspector under sub-section (2) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the IndianPenalCode(45of1860).
(4)TheprovisionsoftheCodeofCriminalProcedure,1898(5of1898), shall,sofarasmaybe,applytoanysearchorseizureundersub-section(2)asthey apply to any search or seizure made under the authority of a warrant issued under section 98 of the said Code.
COMMENTS
Seniorofficersmustensurecompliancewiththeprovisionsofsection21;Salal
HydroElectricProjectv.StateofjammuKashmir,1984(3)SCC538.
29.Registersandotherrecordstobemaintained.—(1)Everyprincipal employerandeverycontractorshallmaintainsuchregistersandrecordsgivingsuch particularsofcontractlabouremployed,thenatureofworkperformedbythecontract labour, the rates of wages paid to the contract labour and such other particulars in suchformasmaybeprescribed.
(2)Everyprincipalemployerandeverycontractorshallkeepexhibitedin suchmannerasmaybeprescribedwithinthepremisesoftheestablishmentwhere thecontractlabourisemployed,noticesintheprescribedformcontainingparticulars aboutthehoursofwork,natureofdutyandsuchotherinformationasmaybeprescribed.
COMMENTS
(i)FormscannotabridgetheActortheRulesmadeordirectionsgiventhereunder; LifeInsuranceCorporationofIndiav.EscortsLtd.,1986(1)SCC264.
TheContractLabour(RegulationandAbolition)Act,1970
(ii)An employermay enjoybenefitsofsection6oftheLabour Laws (Exemption from Furnishing Returns and Maintaining Registers by certain Establishments) Act, 1988 (51of1988)whichcameintoforceon1-5-1989.
30.EffectoflawsandagreementsinconsistentwiththisAct.—(1)The provisionsofthisActshallhaveeffectnotwithstandinganythinginconsistenttherewith containedinanyotherlaworinthetermsofanyagreementorcontractofservice, or in any standing orders applicable to the establishment whether made before or afterthecommencementofthisAct:
Provided thatwhereunderanysuchagreement,contractofserviceorstanding ordersthecontractlabouremployedintheestablishmentareentitledtobenefits in respect of any matter which are more favourable to them than those to which they would be entitled under this Act, the contract labour shall continue to be entitled to the more favourable benefits in respect of that matter, notwithstanding thattheyreceivebenefitsinrespectofothermattersunderthisAct.
(2)NothingcontainedinthisActshallbeconstruedasprecludinganysuch contractlabourfromenteringintoanagreementwiththeprincipalemployerorthe contractor, as the case may be, for granting them rights or privileges in respect of any matter which are more favourable to them than those to which they would be entitledunderthisAct.
COMMENTS
(i)ThisActdoesnotoverridetheprovisionsoftheIndustrialDisputesAct,
1947;FC7LoadingUnloadingWorkers’Unionv.FoodCorporationofIndia,57FLR1 (Summary).
(ii)TheprovisionsofthisActshallhaveoverridingeffectoveranyotherlaw, agreement, contract of service or standing orders which is inconsistent with any of its provisions;T.ChandraMohanNairv.FertilizersChemicalsTravancoreLtd.,1994LLR
626(Ker).
31.Powertoexemptinspecialcases.—TheappropriateGovernmentmay,in thecaseofanemergency,direct,bynotificationintheofficialGazette,thatsubject tosuchconditionsandrestrictions,ifany,andforsuchperiodorperiods,asmaybe specifiedinthenotification,alloranyoftheprovisionsofthisActortherulesmade thereunder shall not apply to any establishment or class of establishments or any classofcontractors.
32.ProtectionofactiontakenunderthisAct.—(1)Nosuit,prosecutionor otherlegalproceedingsshalllieagainstanyregisteringofficer,licensingofficeror any other Government servant or against any memberof the CentralBoard or the StateBoard,asthecasemaybe,foranythingwhichisingoodfaithdoneorintended tobedoneinpursuanceofthisActoranyruleorordermadethereunder.
(2)No suit or other legal proceeding shall lie against the Government for anydamagecausedorlikelytobecausedbyanythingwhichisingoodfaithdoneor intendedtobedoneinpursuanceofthisActoranyruleorordermadethereunder.
33.Powertogivedirections.—TheCentralGovernmentmaygivedirections totheGovernmentofanyStateastothecarryingintoexecutionintheStateofthe provisionscontainedinthisAct.
34.Powertoremovedifficulties.—Ifanydifficultyarisesingivingeffectto theprovisionsofthisAct,theCentralGovernmentmay,byorderpublishedinthe OfficialGazette,makesuchprovisionsnotinconsistentwiththeprovisionsofthis Act, as appears to it to be necessary or expedient for removing the difficulty.
35.Powertomakerules.—(1)TheappropriateGovernmentmay,subjecttothe conditionofpreviouspublication,makerulesforcarryingoutthepurposesofthisAct.
(2)Inparticular,andwithoutprejudicetothegeneralityoftheforegoing power,suchrulesmayprovideforalloranyofthefollowingmatters,namely:—
(a)thenumberofpersonstobeappointedasmembersrepresentingvarious interestson theCentralBoardandtheStateBoard,thetermof their officeandotherconditionsofservice,theproceduretobefollowedin thedischargeoftheirfunctionsandthemanneroffillingvacancies;
(b)thetimesandplacesofthemeetingsofanycommitteeconstitutedunder thisAct,theproceduretobefollowedatsuchmeetingsincludingthe quorum necessary for the transaction of business, and the fees and allowancesthatmaybepaidtothemembersofacommittee;
(c)themannerinwhichestablishmentsmayberegisteredundersection7, thelevyofafeethereforandtheformofcertificateofregistration;
(d)theformofapplicationforthegrantorrenewalofalicenceunder section13andtheparticularsitmaycontain;
(e)themannerinwhichaninvestigationistobemadeinrespectofan application for the grant of a licence and the matters to be taken into accountingrantingorrefusingalicence;
(f)theformofalicencewhichmaybegrantedorrenewedundersection
12 and the conditions subject to which the licence may be granted or renewed,thefeestobeleviedforthegrantorrenewalofalicenceand thedepositofanysumassecurityfortheperformanceofsuchconditions; (g)thecircumstancesunderwhichlicencesmaybevariedoramended undersection14;
(h)theformandmannerinwhichappealsmaybefiledundersection15 and the procedure to be followed by appellate officers in disposing of theappeals;
(i)thetimewithinwhichfacilitiesrequiredbythisActtobeprovidedand maintainedmaybesoprovidedbythecontractorandincaseofdefault
TheContractLabour(RegulationandAbolition)Act,1970
onthepartofthecontractor,bytheprincipalemployer;(j)thenumber and types of canteens, rest-rooms, latrines and urinals that should be providedandmaintained;
(k)thetypeofequipmentthatshouldbeprovidedinthefirst-aidboxes;(1) the period within which wages payable to contract labour should be paidbythecontractorundersub-section(1)ofsection21;(m)theform of registers and records to be maintained by principal employers and contractors;(n) the submission of returns, forms in which, and the authoritiestowhich,suchreturnsmaybesubmitted;(o)thecollection ofanyinformationorstatisticsinrelationtocontractlabour;and(p)any othermatterwhichhastobe,ormaybe,prescribedunderthisAct.
(3)EveryrulemadebytheCentralGovernmentunderthisActshallbelaid as soon as may be after it is made, before each House of Parliament while it is in sessionforatotalperiodofthirtydayswhichmaybecomprisedinonesessionorin twosuccessivesessions,andifbeforetheexpiryofthesessioninwhichitissolaid orthesessionimmediatelyfollowing,bothHousesagreeinmakinganymodification in theruleor both Houses agreethattheruleshould not be made,theruleshall thereafterhaveeffectonly in such modifiedform or be of no effect,as thecase may be; so, however, that any such modification or annulment shall be without prejudicetothevalidityofanythingpreviouslydoneunderthatrule.