THIS COMPOSITION HAS BEEN WRITTEN BY RAJSHREE SONI , A 1st YEAR BA LLB STUDENT FROM MANIPAL UNIVERSITY JAIPUR.
INTRODUCTION
The Contract Labour (Regulation and Abolition) Act, 1970 (CLA) is an Indian law that regulates the employment of contract labour in establishments that employ 20 or more workers. The Act aims to protect the interests of contract labour and ensure that they receive better working conditions, wages, and social security benefits. The Act also provides for the abolition of contract labour in certain circumstances. The Act aims to prevent the exploitation of contract labour and to ensure that they receive basic amenities, wages, and other benefits. The Act was introduced to ensure that the rights of contract workers are protected, and they receive fair treatment at the workplace. The Act also provides guidelines for the registration of establishments that employ contract labour and lays down provisions for the abolition of contract labour in certain circumstances.
The act defines “contract labour” as a worker hired by a contractor to work for an establishment, and “principal employer” as the person who engages the contractor to supply contract labour. The act regulates the conditions of service, welfare measures, and other benefits that must be provided to contract labourers. In this legal research, we will explore the provisions of the CLA, and its impact on contract labour and employers.
BACKGROUND
Before the enactment of the Contract Labour (Regulation and Abolition) Act, 1970, there were no specific regulations governing the employment of contract labour in India. Contract labour was often used as a means to circumvent labour laws and regulations, and contract labourers were often subjected to poor working conditions, low wages, and lack of job security. The introduction of the Act was an attempt to regulate the employment of contract labour and ensure that they receive fair treatment.
OVERVIEW OF CONTRACT LABOUR [ REGULATION AND ABOLITION ] ACT ,1970
The Contract Labour (Regulation and Abolition) Act, 1970 is a social welfare legislation enacted by the Indian Parliament to regulate the use of contract labour in certain industries. The act defines a contract labourer as any person who is hired or engaged in any work by or through a contractor, with or without the knowledge of the principal employer
. The act provides for the registration of contractors and licensing of establishments, where contract labour is employed. The act requires the principal employer to provide certain amenities to contract labourers, such as drinking water, washing facilities, medical facilities, and canteen facilities, at no cost to the labourer. The principal employer is also required to ensure that the wages paid to contract labourers are not less than the wages paid to regular employees for doing similar work.
The act also provides for the abolition of contract labour in certain circumstances. The act provides that the appropriate government may, after consultation with the Central Board, prohibit the employment of contract labour in any establishment or class of establishments, if it is satisfied that the conditions of work of contract labourers are unsatisfactory or that the employment of contract labour is detrimental to the interests of regular employees
SCOPE AND ACCEPTABLITY
The Act applies to establishments where 20 or more workmen are employed on any day of the preceding 12 months as contract labour. The Act also applies to establishments where contract labour is employed through a contractor for the purposes of the establishment’s work.
BENEFITS TO CONTRACT LABOUR
The Contract Labour (Regulation and Abolition) Act, 1970, provides various benefits to contract labourers, such as the right to receive wages and other benefits as per the provisions of the Minimum Wages Act, 1948. The Act also ensures that the contract labourers are provided with basic amenities such as drinking water, canteen, restrooms, and first aid facilities.
The Act also provides for the registration of the contractor with the appropriate government authority, which ensures that the contractor complies with the various provisions of the Act. The Act also provides for the appointment of a labour inspector, who ensures that the contractor provides the contract labourers with basic amenities and statutory benefit.
PROVISION OF CLA
The CLA defines contract labour as any worker who is employed through a contractor to perform work for an establishment. The Act applies to all establishments that employ 20 or more workers, and where the contract labour employed exceeds the threshold limit of 20% of the total workforce.
The Act provides for the registration of contractors who supply contract labour to establishments. The contractor must obtain a license from the appropriate government authority before engaging in the business of supplying contract labour. The registration certificate must be displayed prominently at the establishment
The Act also provides for the welfare and working conditions of contract labour. Employers are required to provide contract labour with the same working conditions, wages, and other benefits as their regular employees. This includes facilities such as canteens, restrooms, and first aid. Employers are also required to pay the contract labourer a wage that is not less than the wage paid to a regular employee performing the same work.
The Act also provides for the abolition of contract labour in certain circumstances. Where the work performed by the contract labour is of a perennial nature, the employer is required to make the contract labourer a regular employee. Similarly, if the contract labour is performing work that is incidental to the main work of the establishment, the employer is required to make them regular employees.
IMPACT OF CONTRACT LABOUR REGULATION AND ABOLITION ACT ,1970
The CLA has had a significant impact on the employment of contract labour in India. The Act has provided contract labourers with better working conditions and wages, and has ensured that they receive social security benefits such as provident fund and gratuity. Employers are now required to treat contract labour on par with regular employees, and this has led to a reduction in the exploitation of contract labourers.
However, the Act has also led to an increase in the cost of labour for employers. Employers are now required to pay contract labourers the same wages as regular employees, and this has led to an increase in the cost of production. This has had an adverse impact on the competitiveness of Indian industries, particularly in the global market.
Penalties for Non-Compliance
The Act lays down penalties for non-compliance with its provisions. These penalties can include fines and imprisonment for both the contractor and the establishment. In addition, the license of the contractor can be revoked if they are found to be in violation of the Act. The Act also provides for the appointment of inspectors who can conduct inspections of establishments and contractors to ensure compliance with its provisions
CONCLUSION
The Contract Labour (Regulation and Abolition) Act, 1970 is an important piece of legislation that has had a significant impact on the employment of contract labour in India. The Act has provided contract labourers with better working conditions, wages, and social security benefits. However, the Act has also led to an increase in the cost of labour for employers, and this has had an adverse impact on the competitiveness of Indian industries.
The Act strikes a balance between the interests of contract labourers and employers, and it is essential that the Act is implemented effectively to ensure that contract labourers are not exploited, and that employers are not burdened with excessive costs.
REFERENCES
- https://legislative.gov.in/sites/default/files/A1970-37_0.pdf
- https://www.indiacode.nic.in/handle/123456789/1467?sam_handle=123456789/1362#:~:text=India%20Code%3A%20Contract%20Labour%20(Regulation%20and%20Abolition)%20Act%2C%201970&text=Long%20Title%3A,and%20for%20matters%20connected%20therewith.
- https://labour.gov.in/sites/default/files/Agenda42ilc.pdf
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