Applicablity of Contract Labour Act
prahalad bagda
(Querist) 24 June 2011
This query is : Resolved
As per contract Labour (Regulation and abolition) Act 1970,
- APPLICABILITY: It extends to the whole of India and applies to : every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.
But my quetion is that if a contractor who employs or who employed less than twenty workmen on one location on any day but total workman on different location on any day is 20 and more. Then contract Labour act applicable on him ?
Please suggest and any related Judgemnt and notification/rules send to me.
Regards
Prahalad Bagda
Kirti Kar Tripathi
(Expert) 24 June 2011
Your query is ambiguous. The applicability ofcontract Labour (Regulation and abolition) Act 1970depends on nature of relationship between Principle Employer and Contractor and nos of employee depends on the fact whether the work under one Principal Employer or Various Employers. In case, they works for on one Principal Employer, the provisions of contract Labour (Regulation and abolition) Act 1970 will attract otherwise not.
prahalad bagda
(Querist) 25 June 2011
Dear Sir,
If a contractor work under different principal Empoyer and his total workman is twenty and more on all locations but on single location his workman is less than 20 then contract Labour (Regulation and abolition) Act 1970 applicable on him.
Please suggest.
Kirti Kar Tripathi
(Expert) 25 June 2011
No. In that event the provisions of Act will not apply
prahalad bagda
(Querist) 27 June 2011
Thanks Sir,
Can you send me any related Judgement/Notification/other item.
Regards
Prahalad Bagda
V.Harikrishnan
(Expert) 30 June 2011
Dear Mr.Prahlad Bagda
Accoring to section 1(4)(b) of the Contract Labour(Regulation and Abolition) Act 1970, this Act is applicable to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.
According to section 12 of the Contract Labour(Regulation and Abolition) Act every contractor to whom the Act applies can undertake or execute any work through contract except under and in accordance with a license issued in that behalf by the licensing officer.
If the above two sections are read together it would be seen that these two sections do not refer to the "Principal Employer". Further, if the contractor employs 20 or more workers, he has to take out a license. The Act does not say that only ifthe same contractor undertakes to supply 20 or more contract worker to a single principal employer, the contractor has to take out a license. The grammatical interpretation of section 1(4)(b) read with section 12 is that if the contractor supplies less than 20 contract workers to individual principal employers but on the whole he is supplying 20 or more contract workers to more than one principal employer then he should take out a license under the Contract Labour(Regulation and Abolition) Act.
With regards
V.HARIKRISHNA
