The main features of the Act can be summarised thus:-
The Act
applies to every establishment in which 20 or more workmen are employed or were
employed on any day on the preceding 12 months as contract labour and to every
contractor who employs or who employed on any day of the preceding 12 months 20
or more workmen. It does not apply to establishments where the work performed
is of intermittent or casual nature. The Act also applies to establishments of
the Government and local authorities as well.
The Central
Government and the State Governments are required to set up Central Advisory
Board and State Advisory Boards, which are authorised to constitute Committees
as deemed proper. The functions of the Boards are advisory, on matters arising
out of the administration of the Act as are referred to them. The Boards carry
out the functions assigned to them under the Act.
The
establishments covered under the Act are required to be registered as the
Principal Employer. Likewise, every contractor to whom the Act applies is
required to obtain a licence and not to undertake or execute any work through
contract labour except under and in accordance with the licence issued.
The Act has
provided for establishment of canteens. For the welfare and health of contract
labour, provision is made for restrooms, first aid, wholesome drinking water,
latrines and urinals. In case of failure on the part of the contractor to
provide such facilities, the Principal Employer is made liable to provide the
amenities.
The
contractor is required to pay wages and a duty is cast on him to ensure
disbursement of wages in the presence of the authorised representative of the
Principal Employer. In case of failure on the part of the contractor to pay
wages either in part or in full, the Principal Employer is liable to pay the
same. In case the contract labour perform same or similar kind of work as
regular workmen, they will be entitled to the same wages and service conditions
as regular workmen as per the Contract Labour (Regulation and Abolition)
Central Rules, 1971.
The Act makes
provision for the appointment of Inspecting staff, for maintenance of registers
and records, for penalties for the contravention of the provisions of the Act
and Rules made thereunder and for making Rules for carrying out the purpose of
the Act. In the central sphere, officers of the CIRM have been appointed as
Inspectors.
Apart from
the regulatory measures provided under the Act for the benefit of the contract
labour, the ‘appropriate government’ under section 10(1) of the Act is
authorised, after consultation with the Central Board or State Board, as the
case may be, to prohibit, by notification in the official gazette, employment
of contract labour in any establishment in any process, operation or other
work.
Sub-section
(2) of Section 10 lays down sufficient guidelines for deciding upon the
abolition of contract labour in any process, operation or other work in any
establishment and the ‘appropriate government’ while taking action under this
Section will have to take an overall picture of the industry carrying on
similar activities. The guidelines furnished under sub-section (2) oblige the
‘appropriate government’ to consider, as relevant data, the material to which
it must have regard. The Central Government on the recommendations of the Board
has abolished contract labour system in a number of jobs in different
industries and so far 75 notifications have been issued.
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Tags :Labour Service Law