Objectives
An act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters c o ~ l e c t e dtherewith. The basic purpose of the Act is to ensure just and humane conditions of work for contract labour and put them at par with regular employees bfprovidig job security. It also empowers the government to prohibit employment of-contract labour in any process, operation or work of permanent or perennial nature.
Scope and Coverage
The Act extends to whole of India. It applies to
(a) every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour, and
(b) every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.
The govenunent can extend the coverage of the Act to any establishment or any contractor employing even less than 20 workmen by notification of its intention in the official gazette to do so. The Act is applicable on all types of establishments whether a government or local authority office, or any industry, trade, business where any manufacturing process or occupation is carried out. It does not apply to any establishment where work is carried out for less than 120 days in a year as the same is considered of intermittent or seasonal nature. It covers all type of workmen who are engaged to do any type of work through a valid license holder contractor but does not include any person working in managerial or administrative capacity.
Administration
The Act is administered by Central or State Governments, depending on which is the appropriate government for a concerned establishment. All central public sectorlcentral government undertakings created under the Act of Parliament are governed by Central Government and for rest of the establishments, State Government is the appropriate authority for enforcing various provisions of the Act.
Obligations of the Employer
The obligations of the employer are as follows :
(a) to obtain registration certificate from the appropriate government for engaging contract laboiur by payment of fee, which varies with the number of contractual labour engaged by the establishment;
(b) to,ensure procurement of license by contractors who are employing more than 20 workmen including the number of workmen employed by them for other establishments;
(c) to get the license of the contractor revoked, suspended or amended on completion of contract work, on adoption of unfair labour practice and increase or decrease in the number of contractual employees;
(d) to ensure provisions of health and welfare facilities such as canteen, rest rooms, drinking water, washing facility, provisions for urinals and latrines,first aid, etc;
(e) to ensure maintenance of register of the contract labour by the employer as well as by the contractor;
(f) to display notice regarding nature and hours of work and rate of payment of contract labour on the notice board at conspicuous places;
(g) to ensure proper and timely payment of wages to contract labomin presence of authorised representative of principal employer and signing of wage register by the authorised representative in confirmation of the same;
(h) to ensure deduction of various statutory deductions such as ESI, Provident Fund, Income Tax, etc. from the wages of contract labour and depositing the same with appropriate agencies; and
(i) to ensure the compliance of various labour laws applicable to the contract labour by the contractor.
Obligations of the Contractor
The obligations of the contractor are as follows :
(a) to obtain license from appropriate government for employing contract labour and to get it amended from time to time depending on the changes in the total number of workmen employed by him;
(b) to provide for various health and welfare facilities suclr as canteen, rest rooms, drinking water, washing facility, provisions for urinals and latrines, fist-aid boxes, etc.;
(c)to maintain proper register wilh details of coiltract labour engaged,by him;
(d) to ensure timely payment of wages and other dues to the contract labour in the presence of authorised representative of principal employer;
(e)to deduct statutory dues fron~ wages of contract labour and depositing the same with appropriate agencies; and
(f) to ensure implementation and compliance of various labour laws applicable to contract labour.
Penalty and Procedure
Initially, it is the direct responsibility of the contractor to make the payments for the services provided by the contract labour including minimuin wages, wages for over-time, wages for leave and holiday alongwitbvarious statutory benefits such as his contribution towards ESI, Provident fund, Fanlily pension. However, if the contractor fails to fulfil his above obligations, it beconles the responsibility of the principal employer for any or all violations under the Act by the contractor.However, the principal employer is authorised to deduct the payment so made by him on behalf of contractor to the contract labour from any dues payable to the contractor.
An act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters c o ~ l e c t e dtherewith. The basic purpose of the Act is to ensure just and humane conditions of work for contract labour and put them at par with regular employees bfprovidig job security. It also empowers the government to prohibit employment of-contract labour in any process, operation or work of permanent or perennial nature.
Scope and Coverage
The Act extends to whole of India. It applies to
(a) every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour, and
(b) every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.
The govenunent can extend the coverage of the Act to any establishment or any contractor employing even less than 20 workmen by notification of its intention in the official gazette to do so. The Act is applicable on all types of establishments whether a government or local authority office, or any industry, trade, business where any manufacturing process or occupation is carried out. It does not apply to any establishment where work is carried out for less than 120 days in a year as the same is considered of intermittent or seasonal nature. It covers all type of workmen who are engaged to do any type of work through a valid license holder contractor but does not include any person working in managerial or administrative capacity.
Administration
The Act is administered by Central or State Governments, depending on which is the appropriate government for a concerned establishment. All central public sectorlcentral government undertakings created under the Act of Parliament are governed by Central Government and for rest of the establishments, State Government is the appropriate authority for enforcing various provisions of the Act.
Obligations of the Employer
The obligations of the employer are as follows :
(a) to obtain registration certificate from the appropriate government for engaging contract laboiur by payment of fee, which varies with the number of contractual labour engaged by the establishment;
(b) to,ensure procurement of license by contractors who are employing more than 20 workmen including the number of workmen employed by them for other establishments;
(c) to get the license of the contractor revoked, suspended or amended on completion of contract work, on adoption of unfair labour practice and increase or decrease in the number of contractual employees;
(d) to ensure provisions of health and welfare facilities such as canteen, rest rooms, drinking water, washing facility, provisions for urinals and latrines,first aid, etc;
(e) to ensure maintenance of register of the contract labour by the employer as well as by the contractor;
(f) to display notice regarding nature and hours of work and rate of payment of contract labour on the notice board at conspicuous places;
(g) to ensure proper and timely payment of wages to contract labomin presence of authorised representative of principal employer and signing of wage register by the authorised representative in confirmation of the same;
(h) to ensure deduction of various statutory deductions such as ESI, Provident Fund, Income Tax, etc. from the wages of contract labour and depositing the same with appropriate agencies; and
(i) to ensure the compliance of various labour laws applicable to the contract labour by the contractor.
Obligations of the Contractor
The obligations of the contractor are as follows :
(a) to obtain license from appropriate government for employing contract labour and to get it amended from time to time depending on the changes in the total number of workmen employed by him;
(b) to provide for various health and welfare facilities suclr as canteen, rest rooms, drinking water, washing facility, provisions for urinals and latrines, fist-aid boxes, etc.;
(c)to maintain proper register wilh details of coiltract labour engaged,by him;
(d) to ensure timely payment of wages and other dues to the contract labour in the presence of authorised representative of principal employer;
(e)to deduct statutory dues fron~ wages of contract labour and depositing the same with appropriate agencies; and
(f) to ensure implementation and compliance of various labour laws applicable to contract labour.
Penalty and Procedure
Initially, it is the direct responsibility of the contractor to make the payments for the services provided by the contract labour including minimuin wages, wages for over-time, wages for leave and holiday alongwitbvarious statutory benefits such as his contribution towards ESI, Provident fund, Fanlily pension. However, if the contractor fails to fulfil his above obligations, it beconles the responsibility of the principal employer for any or all violations under the Act by the contractor.However, the principal employer is authorised to deduct the payment so made by him on behalf of contractor to the contract labour from any dues payable to the contractor.
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