Most of the problems in the existing contract labour legislation arise because of workers being
exploited in the hand of unscrupulous Contractors’, despite of the welfare initiatives taken by
the Principal Employers. A provision be laid down in the Act underlying certain eligibility criteria
to be fulfilled by the contractors before obtaining a license from the licensing officer.
The contractor who has met all the criteria and obtained license under the Act be treated as a
separate establishment and shall be fully accountable as Principal Employer for any type of
compliance/liability. Any failure to make statutory dues like EPF & ESI or in the case of any
accident in the workplace where the Occupier has provided and met with all safety & protective
measures, the Contractor should be equally held responsible with the Principal Employers.
This move would make the contractors more responsible for his/her deeds and also would
create an employer employee relation where the interest of the contract workers can be
safeguarded. So, Chapter III and Chapter IV of the Act be suitably amended to abrogate the
tyranny of contractors.