Contract Labour (Regulation and Abolition) (Maharashtra Amendment) Act: Changes & Impact

The Law and Judiciary Department, Government of Maharashtra vide its notification published in the Maharashtra Government Gazette on 5 January 2017 has made significant amendments in Contract Labour (Regulation and Abolition) Act for the state of  Maharashtra.

Now the said act will be applicable:

a. To every establishment in which 50 (fifty) or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.

b. To every contractor who employs or who employed on any day of the preceding twelve months 50 (fifty) or more workmen.

Prior to the Amendment, the limit for applicability of the said Act in the State was 20 (twenty) or more workmen which was a small number. As we are aware that most of the medium and small enterprises are human intensive hence MSMEs were required to required to comply with more regulations.

Post 5th of January, 2017 business entities employing less than 50 contract labour or contractor employing less than 50 employees during preceding 12 months will be exempted.This will make operations easier for upcoming small scale units. Less number of compliance will lead to less complexity & the same will motivate higher number of start-ups to grow their roots in the state of Maharashtra.

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