DRAFT BILL ON THE CONTRACT LABOUR (REGULATION AND
ABOLITION), 2015
An Act to regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain circumstances and
for matters connected labour therewith.
CHAPTER I
PRELIMINARY
1. Short title, extent, commencement and application. - (1) This Act
may be called the Contract Labour (Regulation and Abolition) Act, 2015
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
(4) It applies--
(a) To every establishment in which ten or more contract labour employed
or was employed on any day of the preceding twelve months through
contractor ;
(b) To every manpower contractor who supply /provide contract labour to
any establishment.
2. Definitions.- (1) In this Act, unless the context otherwise requires,--
(a)"Appropriate Government" means,-- (i) in relation to the manpower supply
contractor having the functioning in more than one State, Central
Government, and
(ii) in relation to any other manpower supply contractor, Government of
State.
(b) Blacklisted Contractor- any contractor who has been blacklisted by
any Government Department.
(c) a workman shall be deemed to be employed as "contract labour" in or in
connection with the work of an establishment when he is hired in or in
connection with such work through a manpower supply contractor.
(d) "Manpower Supply Contractor", means a firm who supplies contract labour
for any work of the establishment.
(e) "establishment" means--
a. any office or department of the Government or a local authority, or
(ii) any place where any industry, trade, business, manufacture or
occupation is carried on;
(f) "prescribed" means prescribed by rules made under this Act;
(g) "wages" means all remuneration (whether by way of salary, allowances or
otherwise) expressed in terms of money or capable of being so expressed
which would, if the terms of employment, express or implied, were fulfilled, be
payable to a person employed in respect of his employment or of work done
in such employment, and includes: —
(a). any remuneration payable under any award or settlement between the
parties or order of a court;
(b). any remuneration to which the person employed is entitled in respect of
overtime work or holidays or any leave period;
(c). any additional remuneration payable under the terms of employment
(whether called a bonus or by any other name);
(d). any sum which by reason of the termination of employment of the person
employed is payable under any law, contract or instrument which provides for
the payment of such sum, whether with or without deductions, but does not
provide for the time within which the payment is to be made;
(e). any sum to which the person employed is entitled under any scheme
framed under any law for the time being in force;
(f). house rent allowance;
but does not include-
(1). any bonus payable under this Code, which does not form part of the
remuneration payable under the terms of employment or which is not payable
under any award or settlement between the parties or order of a Court;
(2). the value of any house-accommodation, or of the supply of light, water,
medical attendance or other amenity or of any service excluded from the
computation of wages by a general or special order of the State Government;
(3). any contribution paid by the employer to any pension or provident fund,
and the interest which may have accrued thereon;
(4). any travelling allowance or the value of any travelling concession;
(5). any sum paid to the employed person to defray special expenses entailed
on J2 the nature of his employment; or
(6). any gratuity payable on the termination of employment in cases other than
those specified in sub-clause (d).
(h) "worker" means any person (except an apprentice) employed to do any
manual, unskilled, skilled, technical, operational, clerical work for hire or
reward, whether the terms of employment be express or implied, but does not
include who is employed mainly in a supervisory or managerial or
administrative capacity.
CHAPTER II
THE ADVISORY BOARDS
3. Central Advisory Board.- (1) The Central Government shall, as soon as
may be, constitute a board to be called the Central Advisory Contract Labour
Board (hereinafter referred to as the Central Board) to advise the Central
Government on such matters arising out of the administration of this Act as
may be referred to it and to carry out other functions assigned to it under this
Act.
(2) The Central Advisory Board shall consist of--
a. Union Labour Minister (in charge), Chairman, ex-officio;
b. Secretary(Labour), Vice-Chairman, ex-officio
c. Joint Secretary/DGLW, Member Secretary
d. Chief Labour Commissioner (Central), Member, ex-officio
e. such number of members, not exceeding eleven but not less than three,
as the Central Government may nominate to represent the Government, the
contractors, the workers and any other interests which, the opinion of the
Central Government, ought to be represented on the Central Advisory Board.
(3) The number of persons to be appointed as members from each of the
categories specified in sub-section (2), the term of office and the manner of
filling vacancies of the Central Advisory Board shall be such as may be
prescribed:
Provided that the number of members nominated to represent the workers
shall not be less than the number of members nominated to represent the
contracts.
4. State Advisory Board.- (1) The State Government may constitute a
board to be called the State Advisory Contract Labour Board (hereinafter
referred to as the State Board) to advice the State Government on such
matters arising out of the administration of this Act as may_be referred to it and
to carry out other functions assigned to it under this Act
2. The State Advisory Board shall consist of--
a. Labour Minister (in charge), Chairman, ex-otticio
b. Secretary (in charge Labour), Vice-Chairman, ex-officio
c. Joint Secretary, Department of Labour, Member Secretary, ex-officio
d. the Labour Commissioner, ex-officio
e. such number of members, not exceeding eleven but not less than three,
as the State Government may nominate to represent the Government, the
contractors, the workers and any other interests which, the opinion of the
State Government, ought to be represented on the State Advisory Board
(3) The number of persons to be appointed as members from each of the
categories specified in sub-section (2), the term of office and the manner of
filling vacancies among, the members of the State Advisory Board shall be
such as may be prescribed:
Provided that the number of members nominated to represent the workers
shall not be less than the number of members nominated to represent the
contractors.
5. Power to constitute committees. - (1) The Central Advisory Board or the
State Advisory Board, as the case may be, may constitute such committees
and for such purpose or purposes as it may think fit.
(2) The committee constituted under sub-section (1) shall meet at such times
and places and shall observe such rules of procedure in regard to the
transaction of business at its meetings as may be prescribed.
(3) The members of a committee shall be paid such allowances for attending
its meetings as may be prescribed:
Provided that no allowance shall, be payable to a member who is an officer of
Government or of any corporation established by any law for the time being in
force.
CHAPTER III
LICENSING OF CONTRACTORS
6. Appointment of Licensing officers.-- The Appropriate Government
may, by an order notified in the Official Gazette,-- appoint such persons,
being Gazetted officers of Government, as it thinks fit to be licensing officers
for the purposes of this Chapter;
7. Licencing of contractors.- (1) No contractor, shall supply or engage
contract labour in any establishment except under and in accordance with a
licence issued in that behalf.
8. Eligibility for Licence
(1) Applicant must be a (Private Limited Company or Public Limited
Company/ Limited Liability Partnership) and incorporated or registered in India
under the Indian Companies Act 2013
(2) Applicant must have minimum 100 workers on its pay roll.
(3) Applicant must not have been blacklisted by Central, or any State/ UT
Government under any law.
(4) Applicant must be registered under Employee's Provident Fund and
Miscellaneous Provisions Act 1952 and each of his worker must be member
of the same.
(5) Applicant must be registered with ESIC Act, 1948, if applicable and each
of his worker is the member of the same.
(6) Applicant must be having registration under Income Tax Act and Income
Tax Payee.
(7) The applicant must be having registration under Service tax Act or other
similar law.
(8) The net worth of the applicant must not be less than 5 crore.
(9) The applicant must be having Labour Identification Number (LIN).
9. Application for Licence.- (1) Every application for the grant of a licence
shall be made in the prescribed form.
(2) The licensing officer may make such investigation in respect of the
application received under sub-section (1) and in making any such
investigation the licensing officer shall follow such procedure as may be
prescribed.
10. Grant of Licence:- If the applicant satisfies the requirement of section 8
and section 9, the licencing officer shall grant the licence within 30 days of
receipt of the application.
11. No fees/ Commission or any cost to workers:- The contractor shall not
charge directly or indirectly, in whole or in part, any fees/ commission or costs
to the workers.
12. Revocation, suspension and amendment of Licence.- (1) If the
licensing officer is satisfied, either on a reference made to him in this behalf
or otherwise, that--
a) a licence issued under section 10 has been obtained by misrepresentation
or suppression of any material fact, or
b) That the contractor has violated the provision of this Act or the rules made
there under or any of the conditions of the licence.
c) the holder of a licence has, without reasonable cause, failed to comply
with the conditions subject to which the registration has been granted or has
contravened any of the provisions of this Act or the rules made there under,
or any other applicable labour law(s) then, without prejudice to any other
penalty to which the contract may be liable under this Act, the licensing officer
may, after giving the contractor an opportunity of showing cause, revoke or
suspend the license.
(2) Subject to any rules that may be made in this behalf, the licensing officer
may vary or amend a registration granted under section 10.
13. Appeal.- (1) Any person aggrieved by an order made under section 10 or
section 12 may, within thirty days from the date on which the order is
communicated to him, prefer an appeal to an appellate authority who shall be
a person notified in this behalf by the appropriate Government:
Provided that the appellate officer may entertain the appeal after the expiry of
the said period of thirty days, if he is satisfied that the appellant was prevented
by sufficient cause from filing the appeal in time.
(2) On receipt of an appeal under sub-section (1), the appellate officer shall,
after giving the appellant an opportunity of being heard dispose of the appeal
within 30 days.
14. If the establishment has not taken contract labour from the licensed
contractor, then the contract labour shall deemed to be directly employed
worker of the establishment.
CHAPTER IV
SOCIAL SECURITY OF CONTRACT LABOUR
15. It shall be the duty of the establishment to pay the dues to the contract
labour and deposit the dues towards the contract labour to various statutory
bodies on behalf of contractor and to comply with the following legislations
wherever applicable;
1. The Employee's Compensation Act, 1923,
2. The Employee's State Insurance Act, 1948,
3. The Employee's Provident Funds and Miscellaneous Provisions Act, 1952,
4. The Maternity Benefit Act, 1961,
5. The Payment of Gratuity Act, 1972
6. The payment of Wages Act, 1936
7. The Equal Remuneration Act, 1976
8. The Minimum Wages Act, 1948
9. The Payment of Bonus Act, 1965
CHAPTER V
OTHER BENEFITS
16. Annual Increment:- Contract Labour shall be entitled for the annual
increment which shall not be less than three per cent of wages.
17. Priority in Regular Employment:- The contract labour who has worked
not less than three years in an establishment shall be given preference by the
establishment while recruiting regular workers.
18. Skill Certification:- The establishment shall issue a skill certificate to the
contract labour at the time of termination/leaving the employment obtained
from the institutions recognised for this purpose.
19. Experience Certificate:- Contractor shall issue experience certification
to the contract labour annually giving details of the work performed by the
contract labour in the prescribed tormat
CHAPTER VI
PROHIBITION
20. Prohibition of employment of contract labour.- (1) Notwithstanding
anything contained in this Act, the appropriate Government may, after
consultation with the Central Board or, as the case may be, a State Board,
prohibit, by notification in the Official Gazette, employment of contract labour
in any process, operation or other work in any establishment.
(2) Before issuing any notification under sub-section (1) in relation to an
establishment, the appropriate Government shall have regard to the
conditions of work and benefits provided for the contract labour in that
establishment and other relevant factors, such as-
(a) whether process, operation or other work is incidental to, or necessary for
the industry, trade, business, manufacture or occupation that is carried on in
the establishment.
(b) whether it is of perennial nature, that is to say, it is of sufficient duration
having regard to the nature of industry, trade, business, manufacture or
occupation carried on in that establishment;
(c) whether it is done ordinarily through regular workmen in that
establishment or an establishment similar thereto;
(d) whether it is sufficient to employ considerable number of whole-time
workmen.
Explanation.-- If a question arises whether any process or operation or other
work is of perennial nature, the decision of the appropriate Government
thereon shall be final.
21. If any establishment has engaged contract labour in violation of section
20 of this Act, such contract labour shall be deemed to be directly employed
worker of the establishment.
CHAPTER-VI
RECORDS, RETURNS AND NOTICES
22. Records, Returns and Notices: (1). Every employer of an
establishment to which this Act applies, shall maintain records containing the
details with regard to persons employed, muster roll, wages, and other details
as prescribed by the appropriate Government on their website and in case the
contractor is not having the website than on the website of establishment is
which the contract labour are engaged.
(2) Every employer shall display on the notice board at a prominent place of
the establishment containing the abstract of the Act, category-wise wage rates
of employees, wage period, day or date and time of payment of wages, and
the name and address of the Facilitator having jurisdiction.
(3). Every employer shall issue wage slips to the employees as may be
prescribed.
(4). Every employer of an establishment shall send an annual return in the
prescribed form and as far as possible electronically to the authority as may
be prescribed.
CHAPTER-VI!
FACILITATORS
23. Appointment of Facilitators and their powers: (1). The appropriate
Government may, by notification, appoint Facilitators who shall exercise the
powers conferred on them under sub-section (4) throughout the State or such
geographical limits assigned to them, in relation to establishments situated in
such State or geographical limits, as the case may be.
(2). The appropriate Government may, by notification, lay down an inspection
scheme which shall provide for generation of a web-based inspection
schedule.
(3). Every Facilitator appointed under sub-section (1) shall be deemed to be
public servant within the meaning of section 21 of the Indian Penal Code 1860
(45 Of 1860).
(4). Subject to any rules made in this behalf by the appropriate Government,
a facilitator may, within the local limits for which he is appointed —
(i). (a). supply information and advice to employers and workers
concerning the most effective means of complying with the provisions of this
Act.
(b). inspect the establishment based on inspection scheme referred to in subsection
(2);
(ii). Subject to clause (i), the Facilitator may —
(a). examine any person who is found in any premises of the establishment
and whom, the Facilitator has reasonable cause to believe, is a worker of the
establishment;
(b). require any person to give any information, which is in his power to give
with respect to the names and addresses of the persons;
(c). search, seize or take copies of such register, record of wages or notices
or portions thereof as the Facilitator may consider relevant in respect of an
offence under this Act and which the Facilitator has reason to believe has been
committed by the employer;
(d). bring to the notice of the appropriate Government defects or abuses not
covered by the law for the time being in force; and
(e). exercise such other powers as may be prescribed.
(5). Any person required to produce any document or to give any information
required by a Facilitator under sub-section (4) shall be deemed to be legally
bound to do so within the meaning of section 175 and section 176 of the Indian
Penal Code (45 of 1860).
CHAPTER VIII
PENALTIES AND PROCEDURE
24. Contravention of provisions regarding employment of contract
labour.- Whoever contravenes any provision of this Act or of any rules made
thereunder prohibiting, restricting or regulating the employment of contract
labour, or contravenes any condition of a license granted under this Act, shall
be punishable with imprisonment for a term which may extend to one month,
or with fine which may extend to fifty thousand rupees, or with both, and in the
case of a continuing contravention with an additional fine which may extend to
one thousand rupees for every day during which such contravention continues
after conviction for the first such contravention.
25. Cognizance of offences.- No court shall take cognizance of any offence
under this Act except on a complaint made by, or with the previous sanction
in writing of, the facilitator and no court inferior to that a judicial magistrate of
the first class shall try any offence punishable under this Act.
26. Limitation of prosecutions.- No court shall take cognizance of an offence
punishable under this Act unless the complaint thereof is made within one year
from the date on which the alleged commission of the offence came to the
knowledge of facilitator:
27.Compounding of offences: (1). Notwithstanding anything
contained in the Act of Criminal Procedure, 1973 (2 of 1974), on the
application of the employer concerned, any offence under this Act shall be
compounded, by such officer being a gazetted officer of the appropriate
Government, in such manner and on payment of such amount to such
government as may be prescribed and if the employer does not agree to pay
such amount for composition of the offence, then, the proceedings shall be
initiated against such employer in accordance with law.
(2). The offence referred to in sub-section (1) may be compounded before or
pending the trial of the offence and when the offence is compounded during
the trial of the offence, the officer compounding the offence under sub-section
(1) shall file a report in the court in which the trial of the offence is pending and
the court shall, on filing of such report, discharge the accused with whom the
offence has been compounded and such composition shall have the effect of
an acquittal of the accused.
(3). Notwithstanding anything contained in this section, where —
(i). the second or subsequent offence of similar nature is committed within
five years from the date of the commission of the first such nature of offence,
then, only the first such offence may be compounded and such second or
subsequent offence shall not be compounded; and
(ii). the accused has previously been convicted by a Court for committing the
offence of similar nature, no further offence of same nature shall be
compounded, under this section.
(4). No offence under this Act shall be compounded, except as provided under
this section.
CHAPTER-IX
MISCELLANEOUS
28. Power to exempt in special cases.- The appropriate Government may,
in the case of an emergency, direct, by notification in the Official Gazette, that
subject to such conditions and restrictions, if any, and for such period or
periods, as may be specified in the notification, all or any of the provisions of
this Act or the rules made thereunder shall not apply to any establishment or
class of establishments or any class of contractors.
29. Protection of action taken under this Act.-(1) No suit, prosecution or
other legal proceedings shall lie against any registering offices, licensing
officer or any other government servant or against any member of the Central
Advisory Board or the State Advisory Board, as the case may be, for anything
which is in good faith done or intended to be done in pursuance of this Act or
any rule or order made thereunder.
(2) No suit or other legal proceeding shall lie against the Government for any
damage caused or likely to be caused by anything which is in good faith done
or intended to be done in pursuance of this Act or any rule or order made
thereunder.
30.Power to give directions.- The Central Government may give directions
to the Government of any State as to the carrying into execution in the State
of the provisions contained in this Act.
31.Power to remove difficulties.- If any difficulty arises in giving effect to the
provisions of this Act, the Central Government may, by order published in the
Official Gazette, make such provisions not inconsistent with the provisions of
this Act, as appears to it to be necessary or expedient for removing the
difficulty.
32. Effect of laws and agreements inconsistent with this Act.- (1) The
provisions of this Act shall have effect notwithstanding anything inconsistent
therewith contained in any other law or in the terms of any agreement or
contract of service, or in any standing orders applicable to the establishment
whether made before or after the commencement of this Act:
Provided that where under any such agreement, contract of service or
standing orders the contract labour employed in the establishment are entitled
to benefits in respect of any matter which are more favourable to them than
those to which they would be entitled under this Act, the contract labour shall
continue to be entitled to the more favourable benefits in respect of that matter,
notwithstanding that they receive benefits in respect of other matters under
this Act.
(2) Nothing contained in this Act shall be construed as precluding any such
contract labour from entering into an agreement with the establishment or the
contractor, as the case may be, for granting them rights or privileges in respect
of any matter, which are more favourable to them than those to which they
would be entitled under this Act.
33. Power to make rules.- (1) The appropriate Government may, subject to
the condition of previous publication, make rules for carrying out the purposes
of this Act.
2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters,
namely:--
(a) the number of persons to be appointed as members representing various
interests on the Central Board and the State Board, the term of their office, the
procedure to be followed in the discharge of their functions and the manner of
filling vacancies;
(b) the times and places of the meetings of any committee constituted under
(c) the form of application for the grant a license and the particulars it may
contain;
(d) the manner in which an investigation is to be made in respect of an
application for the grant of a license and the matters to be taken into account
in granting or refusing a registration;
(e) the form and manner in which appeals may be filed and the procedure to
be followed by appellate officers in disposing of the appeals;
(3) Every rule made by the Central Government under this Act shall be laid
as soon as may be after it is made, before each House of Parliament while it
is in session for a total period of thirty days which may be comprised in one
session or in two successive sessions, and if before the expiry of the session
in which it is so laid or the session immediately following, both Houses agree
in making any modification in the rule or both Houses agree that the rule
should not be made, the rule shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.
34. Repeal and savings - (1). Contract Labour (Regulation &
Abolition) Act, 1970 is hereby repealed.
(2). Notwithstanding such repeal, anything done or any action taken under the
enactment so repealed (including any notification, nomination, appointment,
order or direction made thereunder) shall be deemed to have been done or
taken under the corresponding provisions of this Act and shall be in force to
the extent they are not contrary to the provisions of this Act till they are
repealed under the corresponding provisions of this Act.
(3). Without prejudice to the provisions of sub-section (2), the provisions of
section 6 of the General Clause Act, 1897 (10 of 1897) shall apply to the repeal
of such enactments.
4
From India, Bangalore
2ABOLITION), 2015
An Act to regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain circumstances and
for matters connected labour therewith.
CHAPTER I
PRELIMINARY
1. Short title, extent, commencement and application. - (1) This Act
may be called the Contract Labour (Regulation and Abolition) Act, 2015
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
(4) It applies--
(a) To every establishment in which ten or more contract labour employed
or was employed on any day of the preceding twelve months through
contractor ;
(b) To every manpower contractor who supply /provide contract labour to
any establishment.
2. Definitions.- (1) In this Act, unless the context otherwise requires,--
(a)"Appropriate Government" means,-- (i) in relation to the manpower supply
contractor having the functioning in more than one State, Central
Government, and
(ii) in relation to any other manpower supply contractor, Government of
State.
(b) Blacklisted Contractor- any contractor who has been blacklisted by
any Government Department.
(c) a workman shall be deemed to be employed as "contract labour" in or in
connection with the work of an establishment when he is hired in or in
connection with such work through a manpower supply contractor.
(d) "Manpower Supply Contractor", means a firm who supplies contract labour
for any work of the establishment.
(e) "establishment" means--
a. any office or department of the Government or a local authority, or
(ii) any place where any industry, trade, business, manufacture or
occupation is carried on;
(f) "prescribed" means prescribed by rules made under this Act;
(g) "wages" means all remuneration (whether by way of salary, allowances or
otherwise) expressed in terms of money or capable of being so expressed
which would, if the terms of employment, express or implied, were fulfilled, be
payable to a person employed in respect of his employment or of work done
in such employment, and includes: —
(a). any remuneration payable under any award or settlement between the
parties or order of a court;
(b). any remuneration to which the person employed is entitled in respect of
overtime work or holidays or any leave period;
(c). any additional remuneration payable under the terms of employment
(whether called a bonus or by any other name);
(d). any sum which by reason of the termination of employment of the person
employed is payable under any law, contract or instrument which provides for
the payment of such sum, whether with or without deductions, but does not
provide for the time within which the payment is to be made;
(e). any sum to which the person employed is entitled under any scheme
framed under any law for the time being in force;
(f). house rent allowance;
but does not include-
(1). any bonus payable under this Code, which does not form part of the
remuneration payable under the terms of employment or which is not payable
under any award or settlement between the parties or order of a Court;
(2). the value of any house-accommodation, or of the supply of light, water,
medical attendance or other amenity or of any service excluded from the
computation of wages by a general or special order of the State Government;
(3). any contribution paid by the employer to any pension or provident fund,
and the interest which may have accrued thereon;
(4). any travelling allowance or the value of any travelling concession;
(5). any sum paid to the employed person to defray special expenses entailed
on J2 the nature of his employment; or
(6). any gratuity payable on the termination of employment in cases other than
those specified in sub-clause (d).
(h) "worker" means any person (except an apprentice) employed to do any
manual, unskilled, skilled, technical, operational, clerical work for hire or
reward, whether the terms of employment be express or implied, but does not
include who is employed mainly in a supervisory or managerial or
administrative capacity.
CHAPTER II
THE ADVISORY BOARDS
3. Central Advisory Board.- (1) The Central Government shall, as soon as
may be, constitute a board to be called the Central Advisory Contract Labour
Board (hereinafter referred to as the Central Board) to advise the Central
Government on such matters arising out of the administration of this Act as
may be referred to it and to carry out other functions assigned to it under this
Act.
(2) The Central Advisory Board shall consist of--
a. Union Labour Minister (in charge), Chairman, ex-officio;
b. Secretary(Labour), Vice-Chairman, ex-officio
c. Joint Secretary/DGLW, Member Secretary
d. Chief Labour Commissioner (Central), Member, ex-officio
e. such number of members, not exceeding eleven but not less than three,
as the Central Government may nominate to represent the Government, the
contractors, the workers and any other interests which, the opinion of the
Central Government, ought to be represented on the Central Advisory Board.
(3) The number of persons to be appointed as members from each of the
categories specified in sub-section (2), the term of office and the manner of
filling vacancies of the Central Advisory Board shall be such as may be
prescribed:
Provided that the number of members nominated to represent the workers
shall not be less than the number of members nominated to represent the
contracts.
4. State Advisory Board.- (1) The State Government may constitute a
board to be called the State Advisory Contract Labour Board (hereinafter
referred to as the State Board) to advice the State Government on such
matters arising out of the administration of this Act as may_be referred to it and
to carry out other functions assigned to it under this Act
2. The State Advisory Board shall consist of--
a. Labour Minister (in charge), Chairman, ex-otticio
b. Secretary (in charge Labour), Vice-Chairman, ex-officio
c. Joint Secretary, Department of Labour, Member Secretary, ex-officio
d. the Labour Commissioner, ex-officio
e. such number of members, not exceeding eleven but not less than three,
as the State Government may nominate to represent the Government, the
contractors, the workers and any other interests which, the opinion of the
State Government, ought to be represented on the State Advisory Board
(3) The number of persons to be appointed as members from each of the
categories specified in sub-section (2), the term of office and the manner of
filling vacancies among, the members of the State Advisory Board shall be
such as may be prescribed:
Provided that the number of members nominated to represent the workers
shall not be less than the number of members nominated to represent the
contractors.
5. Power to constitute committees. - (1) The Central Advisory Board or the
State Advisory Board, as the case may be, may constitute such committees
and for such purpose or purposes as it may think fit.
(2) The committee constituted under sub-section (1) shall meet at such times
and places and shall observe such rules of procedure in regard to the
transaction of business at its meetings as may be prescribed.
(3) The members of a committee shall be paid such allowances for attending
its meetings as may be prescribed:
Provided that no allowance shall, be payable to a member who is an officer of
Government or of any corporation established by any law for the time being in
force.
CHAPTER III
LICENSING OF CONTRACTORS
6. Appointment of Licensing officers.-- The Appropriate Government
may, by an order notified in the Official Gazette,-- appoint such persons,
being Gazetted officers of Government, as it thinks fit to be licensing officers
for the purposes of this Chapter;
7. Licencing of contractors.- (1) No contractor, shall supply or engage
contract labour in any establishment except under and in accordance with a
licence issued in that behalf.
8. Eligibility for Licence
(1) Applicant must be a (Private Limited Company or Public Limited
Company/ Limited Liability Partnership) and incorporated or registered in India
under the Indian Companies Act 2013
(2) Applicant must have minimum 100 workers on its pay roll.
(3) Applicant must not have been blacklisted by Central, or any State/ UT
Government under any law.
(4) Applicant must be registered under Employee's Provident Fund and
Miscellaneous Provisions Act 1952 and each of his worker must be member
of the same.
(5) Applicant must be registered with ESIC Act, 1948, if applicable and each
of his worker is the member of the same.
(6) Applicant must be having registration under Income Tax Act and Income
Tax Payee.
(7) The applicant must be having registration under Service tax Act or other
similar law.
(8) The net worth of the applicant must not be less than 5 crore.
(9) The applicant must be having Labour Identification Number (LIN).
9. Application for Licence.- (1) Every application for the grant of a licence
shall be made in the prescribed form.
(2) The licensing officer may make such investigation in respect of the
application received under sub-section (1) and in making any such
investigation the licensing officer shall follow such procedure as may be
prescribed.
10. Grant of Licence:- If the applicant satisfies the requirement of section 8
and section 9, the licencing officer shall grant the licence within 30 days of
receipt of the application.
11. No fees/ Commission or any cost to workers:- The contractor shall not
charge directly or indirectly, in whole or in part, any fees/ commission or costs
to the workers.
12. Revocation, suspension and amendment of Licence.- (1) If the
licensing officer is satisfied, either on a reference made to him in this behalf
or otherwise, that--
a) a licence issued under section 10 has been obtained by misrepresentation
or suppression of any material fact, or
b) That the contractor has violated the provision of this Act or the rules made
there under or any of the conditions of the licence.
c) the holder of a licence has, without reasonable cause, failed to comply
with the conditions subject to which the registration has been granted or has
contravened any of the provisions of this Act or the rules made there under,
or any other applicable labour law(s) then, without prejudice to any other
penalty to which the contract may be liable under this Act, the licensing officer
may, after giving the contractor an opportunity of showing cause, revoke or
suspend the license.
(2) Subject to any rules that may be made in this behalf, the licensing officer
may vary or amend a registration granted under section 10.
13. Appeal.- (1) Any person aggrieved by an order made under section 10 or
section 12 may, within thirty days from the date on which the order is
communicated to him, prefer an appeal to an appellate authority who shall be
a person notified in this behalf by the appropriate Government:
Provided that the appellate officer may entertain the appeal after the expiry of
the said period of thirty days, if he is satisfied that the appellant was prevented
by sufficient cause from filing the appeal in time.
(2) On receipt of an appeal under sub-section (1), the appellate officer shall,
after giving the appellant an opportunity of being heard dispose of the appeal
within 30 days.
14. If the establishment has not taken contract labour from the licensed
contractor, then the contract labour shall deemed to be directly employed
worker of the establishment.
CHAPTER IV
SOCIAL SECURITY OF CONTRACT LABOUR
15. It shall be the duty of the establishment to pay the dues to the contract
labour and deposit the dues towards the contract labour to various statutory
bodies on behalf of contractor and to comply with the following legislations
wherever applicable;
1. The Employee's Compensation Act, 1923,
2. The Employee's State Insurance Act, 1948,
3. The Employee's Provident Funds and Miscellaneous Provisions Act, 1952,
4. The Maternity Benefit Act, 1961,
5. The Payment of Gratuity Act, 1972
6. The payment of Wages Act, 1936
7. The Equal Remuneration Act, 1976
8. The Minimum Wages Act, 1948
9. The Payment of Bonus Act, 1965
CHAPTER V
OTHER BENEFITS
16. Annual Increment:- Contract Labour shall be entitled for the annual
increment which shall not be less than three per cent of wages.
17. Priority in Regular Employment:- The contract labour who has worked
not less than three years in an establishment shall be given preference by the
establishment while recruiting regular workers.
18. Skill Certification:- The establishment shall issue a skill certificate to the
contract labour at the time of termination/leaving the employment obtained
from the institutions recognised for this purpose.
19. Experience Certificate:- Contractor shall issue experience certification
to the contract labour annually giving details of the work performed by the
contract labour in the prescribed tormat
CHAPTER VI
PROHIBITION
20. Prohibition of employment of contract labour.- (1) Notwithstanding
anything contained in this Act, the appropriate Government may, after
consultation with the Central Board or, as the case may be, a State Board,
prohibit, by notification in the Official Gazette, employment of contract labour
in any process, operation or other work in any establishment.
(2) Before issuing any notification under sub-section (1) in relation to an
establishment, the appropriate Government shall have regard to the
conditions of work and benefits provided for the contract labour in that
establishment and other relevant factors, such as-
(a) whether process, operation or other work is incidental to, or necessary for
the industry, trade, business, manufacture or occupation that is carried on in
the establishment.
(b) whether it is of perennial nature, that is to say, it is of sufficient duration
having regard to the nature of industry, trade, business, manufacture or
occupation carried on in that establishment;
(c) whether it is done ordinarily through regular workmen in that
establishment or an establishment similar thereto;
(d) whether it is sufficient to employ considerable number of whole-time
workmen.
Explanation.-- If a question arises whether any process or operation or other
work is of perennial nature, the decision of the appropriate Government
thereon shall be final.
21. If any establishment has engaged contract labour in violation of section
20 of this Act, such contract labour shall be deemed to be directly employed
worker of the establishment.
CHAPTER-VI
RECORDS, RETURNS AND NOTICES
22. Records, Returns and Notices: (1). Every employer of an
establishment to which this Act applies, shall maintain records containing the
details with regard to persons employed, muster roll, wages, and other details
as prescribed by the appropriate Government on their website and in case the
contractor is not having the website than on the website of establishment is
which the contract labour are engaged.
(2) Every employer shall display on the notice board at a prominent place of
the establishment containing the abstract of the Act, category-wise wage rates
of employees, wage period, day or date and time of payment of wages, and
the name and address of the Facilitator having jurisdiction.
(3). Every employer shall issue wage slips to the employees as may be
prescribed.
(4). Every employer of an establishment shall send an annual return in the
prescribed form and as far as possible electronically to the authority as may
be prescribed.
CHAPTER-VI!
FACILITATORS
23. Appointment of Facilitators and their powers: (1). The appropriate
Government may, by notification, appoint Facilitators who shall exercise the
powers conferred on them under sub-section (4) throughout the State or such
geographical limits assigned to them, in relation to establishments situated in
such State or geographical limits, as the case may be.
(2). The appropriate Government may, by notification, lay down an inspection
scheme which shall provide for generation of a web-based inspection
schedule.
(3). Every Facilitator appointed under sub-section (1) shall be deemed to be
public servant within the meaning of section 21 of the Indian Penal Code 1860
(45 Of 1860).
(4). Subject to any rules made in this behalf by the appropriate Government,
a facilitator may, within the local limits for which he is appointed —
(i). (a). supply information and advice to employers and workers
concerning the most effective means of complying with the provisions of this
Act.
(b). inspect the establishment based on inspection scheme referred to in subsection
(2);
(ii). Subject to clause (i), the Facilitator may —
(a). examine any person who is found in any premises of the establishment
and whom, the Facilitator has reasonable cause to believe, is a worker of the
establishment;
(b). require any person to give any information, which is in his power to give
with respect to the names and addresses of the persons;
(c). search, seize or take copies of such register, record of wages or notices
or portions thereof as the Facilitator may consider relevant in respect of an
offence under this Act and which the Facilitator has reason to believe has been
committed by the employer;
(d). bring to the notice of the appropriate Government defects or abuses not
covered by the law for the time being in force; and
(e). exercise such other powers as may be prescribed.
(5). Any person required to produce any document or to give any information
required by a Facilitator under sub-section (4) shall be deemed to be legally
bound to do so within the meaning of section 175 and section 176 of the Indian
Penal Code (45 of 1860).
CHAPTER VIII
PENALTIES AND PROCEDURE
24. Contravention of provisions regarding employment of contract
labour.- Whoever contravenes any provision of this Act or of any rules made
thereunder prohibiting, restricting or regulating the employment of contract
labour, or contravenes any condition of a license granted under this Act, shall
be punishable with imprisonment for a term which may extend to one month,
or with fine which may extend to fifty thousand rupees, or with both, and in the
case of a continuing contravention with an additional fine which may extend to
one thousand rupees for every day during which such contravention continues
after conviction for the first such contravention.
25. Cognizance of offences.- No court shall take cognizance of any offence
under this Act except on a complaint made by, or with the previous sanction
in writing of, the facilitator and no court inferior to that a judicial magistrate of
the first class shall try any offence punishable under this Act.
26. Limitation of prosecutions.- No court shall take cognizance of an offence
punishable under this Act unless the complaint thereof is made within one year
from the date on which the alleged commission of the offence came to the
knowledge of facilitator:
27.Compounding of offences: (1). Notwithstanding anything
contained in the Act of Criminal Procedure, 1973 (2 of 1974), on the
application of the employer concerned, any offence under this Act shall be
compounded, by such officer being a gazetted officer of the appropriate
Government, in such manner and on payment of such amount to such
government as may be prescribed and if the employer does not agree to pay
such amount for composition of the offence, then, the proceedings shall be
initiated against such employer in accordance with law.
(2). The offence referred to in sub-section (1) may be compounded before or
pending the trial of the offence and when the offence is compounded during
the trial of the offence, the officer compounding the offence under sub-section
(1) shall file a report in the court in which the trial of the offence is pending and
the court shall, on filing of such report, discharge the accused with whom the
offence has been compounded and such composition shall have the effect of
an acquittal of the accused.
(3). Notwithstanding anything contained in this section, where —
(i). the second or subsequent offence of similar nature is committed within
five years from the date of the commission of the first such nature of offence,
then, only the first such offence may be compounded and such second or
subsequent offence shall not be compounded; and
(ii). the accused has previously been convicted by a Court for committing the
offence of similar nature, no further offence of same nature shall be
compounded, under this section.
(4). No offence under this Act shall be compounded, except as provided under
this section.
CHAPTER-IX
MISCELLANEOUS
28. Power to exempt in special cases.- The appropriate Government may,
in the case of an emergency, direct, by notification in the Official Gazette, that
subject to such conditions and restrictions, if any, and for such period or
periods, as may be specified in the notification, all or any of the provisions of
this Act or the rules made thereunder shall not apply to any establishment or
class of establishments or any class of contractors.
29. Protection of action taken under this Act.-(1) No suit, prosecution or
other legal proceedings shall lie against any registering offices, licensing
officer or any other government servant or against any member of the Central
Advisory Board or the State Advisory Board, as the case may be, for anything
which is in good faith done or intended to be done in pursuance of this Act or
any rule or order made thereunder.
(2) No suit or other legal proceeding shall lie against the Government for any
damage caused or likely to be caused by anything which is in good faith done
or intended to be done in pursuance of this Act or any rule or order made
thereunder.
30.Power to give directions.- The Central Government may give directions
to the Government of any State as to the carrying into execution in the State
of the provisions contained in this Act.
31.Power to remove difficulties.- If any difficulty arises in giving effect to the
provisions of this Act, the Central Government may, by order published in the
Official Gazette, make such provisions not inconsistent with the provisions of
this Act, as appears to it to be necessary or expedient for removing the
difficulty.
32. Effect of laws and agreements inconsistent with this Act.- (1) The
provisions of this Act shall have effect notwithstanding anything inconsistent
therewith contained in any other law or in the terms of any agreement or
contract of service, or in any standing orders applicable to the establishment
whether made before or after the commencement of this Act:
Provided that where under any such agreement, contract of service or
standing orders the contract labour employed in the establishment are entitled
to benefits in respect of any matter which are more favourable to them than
those to which they would be entitled under this Act, the contract labour shall
continue to be entitled to the more favourable benefits in respect of that matter,
notwithstanding that they receive benefits in respect of other matters under
this Act.
(2) Nothing contained in this Act shall be construed as precluding any such
contract labour from entering into an agreement with the establishment or the
contractor, as the case may be, for granting them rights or privileges in respect
of any matter, which are more favourable to them than those to which they
would be entitled under this Act.
33. Power to make rules.- (1) The appropriate Government may, subject to
the condition of previous publication, make rules for carrying out the purposes
of this Act.
2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters,
namely:--
(a) the number of persons to be appointed as members representing various
interests on the Central Board and the State Board, the term of their office, the
procedure to be followed in the discharge of their functions and the manner of
filling vacancies;
(b) the times and places of the meetings of any committee constituted under
(c) the form of application for the grant a license and the particulars it may
contain;
(d) the manner in which an investigation is to be made in respect of an
application for the grant of a license and the matters to be taken into account
in granting or refusing a registration;
(e) the form and manner in which appeals may be filed and the procedure to
be followed by appellate officers in disposing of the appeals;
(3) Every rule made by the Central Government under this Act shall be laid
as soon as may be after it is made, before each House of Parliament while it
is in session for a total period of thirty days which may be comprised in one
session or in two successive sessions, and if before the expiry of the session
in which it is so laid or the session immediately following, both Houses agree
in making any modification in the rule or both Houses agree that the rule
should not be made, the rule shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.
34. Repeal and savings - (1). Contract Labour (Regulation &
Abolition) Act, 1970 is hereby repealed.
(2). Notwithstanding such repeal, anything done or any action taken under the
enactment so repealed (including any notification, nomination, appointment,
order or direction made thereunder) shall be deemed to have been done or
taken under the corresponding provisions of this Act and shall be in force to
the extent they are not contrary to the provisions of this Act till they are
repealed under the corresponding provisions of this Act.
(3). Without prejudice to the provisions of sub-section (2), the provisions of
section 6 of the General Clause Act, 1897 (10 of 1897) shall apply to the repeal
of such enactments.
4
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