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DESHMUKH & ASSOCIATES

Contract Labour Law Consultant

Purpose & Object

The Contract Labour (Regulation & Abolition) Act, 1970 has been enacted to regulate the employment of contract labour and to bring them at par with directly employed labour with regard to the working conditions and other benefits and also to provide for abolition of contract labour in certain circumstances.

Applicability 

  • Contract Labour (Regulation & Abolition) Act, 1970 extends to whole of India.
  • Applicable to all industrial and commercial establishments

Registration / License

  • Registration: Every establishment to which this Act applies shall get itself register with the registering authority.
  • License: Every contractor / sub-contractor to whom this Act applies shall obtain a license from the licensing authority and such contractor / sub-contractor shall undertake or execute work through contract labour in accordance with terms of license issued by the licensing officer.

Obligation of Payment

  • Contractor / Sub-contractor shall be responsible for payment of wages to each worker employed by him as contract labour
  • Every such payment to contract labour shall be paid in the presence of authorized representative of Principal Employer
  • In case the Contractor / Sub-contractor fails to make payment of wages within the prescribed period or makes short payment then, the Principal Employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the Contractor / Sub-contractor.