{"id":21546,"date":"2024-03-15T12:56:02","date_gmt":"2024-03-15T07:26:02","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=21546"},"modified":"2025-04-06T12:58:26","modified_gmt":"2025-04-06T07:28:26","slug":"contract-labour-regulation-and-abolition-act","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/contract-labour-regulation-and-abolition-act\/","title":{"rendered":"What is Contract Labour (Regulation and Abolition) Act, 1970?"},"content":{"rendered":"<h2>What is Contract Labour?<\/h2>\n<ul>\n<li>A workman is deemed to be employed as contract labour\u00a0when he is hired\u00a0in connection with the\u00a0work of an establishment by or through a contractor.\u00a0<\/li>\n<li>They are\u00a0indirect employees.<\/li>\n<li>Contract labour differs from direct labour in terms of the employment relationship with the establishment and method of wage payment.\u00a0<\/li>\n<li>Contract labour, by and large, is\u00a0not borne on pay roll nor is paid directly.<\/li>\n<li>The contract workers are hired,\u00a0supervised and remunerated by the contractor, who\u00a0in turn, is remunerated by the establishment\u00a0hiring the services of\u00a0the contractor.<\/li>\n<li>A contractor is a person who\u00a0takes over the responsibility to produce a given result for the establishment, other than a supply of goods or services of manufacture to such establishment,\u00a0through contract labour or the person who provides contract labour for any work of the establishment and\u00a0includes a sub-contractor.<\/li>\n<\/ul>\n<h2>About Contract Labour (Regulation and Abolition) Act, 1970<\/h2>\n<ul>\n<li>This act has been enacted\u00a0to regulate the employment of contract labour in certain establishments, and to\u00a0provide for its abolition in certain circumstances, and for matters connected therewith.<\/li>\n<li>It aims to\u00a0prevent the exploitation of contract labour and also introduce better conditions of work.<\/li>\n<li>It extends to the whole of India.<\/li>\n<li>Applicability:\n<ul>\n<li>To\u00a0any establishment in which\u00a0twenty or more workmen are employed on any day of the of the accounting year as contract labour.<\/li>\n<li>To any contractor\u00a0who employs or who employs\u00a0twenty or more workers on any day of the accounting year.<\/li>\n<li>Also, it\u00a0does not apply to the establishments\u00a0if any work is performed in the intermittent nature.<\/li>\n<li>It\u00a0does not apply to establishments situated in the\u00a0special economic zone (SEZ).<\/li>\n<\/ul>\n<\/li>\n<li>Salient Features of the Act:\n<ul>\n<li>Every establishment\u00a0which proposes\u00a0to employ contract workers for its work is\u00a0required to obtain a certificate of registration from the appropriate Government.<\/li>\n<li>Every contractor who has employed twenty or more workers on any day of the month\u00a0has to obtain a license for engaging contract labour working for any establishment.<\/li>\n<li>The granted licence will be\u00a0valid for the specified period and may be\u00a0renewed from time to time.<\/li>\n<li>Payment of Wages:<\/li>\n<\/ul>\n<\/li>\n<li>It is the\u00a0responsibility of the contractor to pay the\u00a0required wages to each worker employed under contract labour before the expiry of the stipulated period.<\/li>\n<li>If the contractor fails to make the payment within the stipulated period, then the\u00a0principal employer shall be liable to make the payment of wages in full or the unpaid balance due.<\/li>\n<li>The\u00a0wages are to be fixed by the Commissioner of Labour.\n<ul>\n<li>For contravention of the provisions of the Act or any rules made thereunder, the punishment is imprisonment for a maximum term upto 3 months and a<br \/>\nfine upto a maximum of Rs.1000\/-.<\/li>\n<li>The Act\u00a0provides for the constitution of Central and State Advisory Boards to advise the concerned governments on matters arising out of the administration of the Act.\u00a0<\/li>\n<li>The\u00a0Central or state government after consultation with the appropriate advisory boards\u00a0may prohibit the employment of contract labour in any process,\u00a0operation or other work in any establishment.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is the Special Economic Zone?<\/h3>\n<p>SEZ refers to the Special Economic Zone, which is a special demarcated area or a geographical region that is considered as a duty-free enclave and has different economic laws than the rest of the country.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.livelaw.in\/supreme-court\/workers-employed-to-perform-perennialpermanent-nature-of-work-cant-be-treated-as-contractual-workers-supreme-court-allows-regularisation-252130\" target=\"_blank\" rel=\"nofollow noopener\"><u>Workers Employed To Perform Perennial\/Permanent Nature Of Work Can&#8217;t Be Treated As Contractual Workers : Supreme Court Allows Regularisation<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contract Labour (Regulation and Abolition) Act, 1970 has been enacted to regulate the employment of contract labour in certain establishments, and to provide for its abolition in certain circumstances.<\/p>\n","protected":false},"author":5,"featured_media":21547,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-21546","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=21546"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21546\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/21547"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=21546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=21546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=21546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}