Contract Labour (Regulation and Abolition) Act, 1970
 
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Contract Labour (Regulation and Abolition) Act, 1970

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Last Updated On: 11/02/2014  
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THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970  
                    ACT NO. 37 OF 1970  
                  [5th September, 1970.]

1)      Short title, extent,  commencement and  application.-

1)      This Act may be called the Contract Labour (Regulation and Abolition) Act, 1970.

2)      It extends to the whole of India.

3)      It shall come into force on such date 1* as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act.

4)      It applies

a)      to  every establishment  in which twenty or more workmen are employed  or  were  employed  on  any  day  of  the preceding twelve months as contract labour;

b)      to  every contractor who employes or who employed on any day of  the preceding  twelve  months  twenty  or  more workmen:

Provided that  the appropriate  Government may,  after giving not less  than   two  months’  notice  of  its  intention  so  to  do,  by notification in the Official Gazette, apply the provisions of this Act to any  establishment or  contractor employing  such number of workmen less than twenty as may be specified in the notification.

5)       

a)      It shall not apply to establishments in which work only of an intermittent or casual nature is performed.

b)      If   a  question   arises  whether   work  performed  in  an establishment is  of an intermittent or casual nature, the appropriate Government shall decide that  question after consultation with the Central Board or, as the case may be, a State Board, and its decision shall be final.Explanation.--For the purpose of this sub-section, work performed in an  establishment shall  not be  deemed to  be of  an  intermittent nature

(i)      if it was performed for more than one hundred and twenty days in the preceding twelve months, or

(ii)    if it is  of a seasonal character and is performed for more than sixty days in a year.

2)      Definitions.-

1)      In  this Act,  unless the  context otherwise requires,--

a)      appropriate Government" means,--

(i)      in  relation to  an establishment  in  respect  of   which the appropriate Government under the  Industrial  Disputes Act, 1947 (14 of 1947),  is  the  Central  Government, the Central Government;

(ii)    in  relation to  any other  establishment, the Government of  the  State  in  which  that  other  establishment  is situate

b)      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  by or  through a contractor, with or without the knowledge of the principal employer;

c)       "contractor",  in relation  to an establishment, means a person who undertakes to produce a given result for the establishment,other  than a  mere supply  of goods  of articles of  manufacture to such establishment, through contract labour or who supplies contract labour forany work  of   the  establishment   and  includes   a  sub-contractor;

d)      "controlled  industry" means any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest;  Subs. by Act 14 of 1986, s. 2 (w.e.f. 28.1.1986).

e)      "establishment" means

(i)      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)      "principal employer" means

(i)      in relation to any office or department of the Government or  a local  authority,  the  head  of  that office or  department or  such  other  officer  as  the Government or  the local authority, as the case may be, may specify in this behalf,

(ii)    in  a factory,  the owner  or occupier of the factory and  where a  person  has  been  named  as  the manager of  the factory under the Factories Act,  1948 (63 of 1948) the person so named,

(iii)   in  a mine,  the owner  or agent of the mineand where a person has been named as the manager of the mine, the person so named,

(iv)  in   any  other  establishment,  any  person responsible for  the supervision  and  control  of  the establishment. Explanation.--For the purpose of sub-clause (iii) of this clause, the expressions  "mine", "owner"  and "agent"  shall have the meanings respectively assigned to them in clause (j), clause (l) and clause (c) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of  1952);

h)      "wages"  shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936  (4 of 1936);

i)        "workman"  means any person employed in or in connection with the  work of  any establishment to do any skilled, semiskilled   or    un-skilled   manual,   supervisory, technical or  clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person

(A)   who  is employed  mainly in  a  managerial  or administrative capacity; or

(B)   who,  being employed  in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either  by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or

(C)   who is an out-worker, that is to say, a person to whom  any articles  or materials are given out by or on behalf  of the  Principal employer  to be  made  up, cleaned,   washed,   altered,   ornamented,   finished, repaired, adapted  or otherwise  processed for sale for the purposes  of the trade or business of the principal employer and the process is to be carried out either in the home  of the  out-worker or in some other premises, not being  premises under the control and management of the principal employer.

2)      Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir shall, in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State.

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 Board shall consist of

a)      a  Chairman to be appointed by the Central Government;

b)      the Chief Labour Commissioner (Central), ex-officio;

c)       such  number of members, not exceeding seventeen but not less  than   eleven,  as  the  Central  Government  may nominate to  represent that  Government, the  Railways, the   coal   industry,   the   mining   industry, the contractors, the workmen and any other interests which, in the  opinion of  the Central Government, ought to be represented on the Central 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 other conditions  of service  of, the  procedure to be followed in the discharge of  their functions  by, and the manner of filling vacancies among, the  members of  the Central  Board shall  be such  as  may  be prescribed:

Provided that  the number  of members  nominated to represent the workmen shall  not be  less than  the number  of members  nominated to represent the principal employers and the contractors.

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  advise  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 Board shall consist of

a)      a Chairman to be appointed by the State Government;

b)      the  Labour Commissioner,  ex-officio, or in his absence any other  officer nominated by the State Government in that behalf;

c)       such  number of  members, not  exceeding eleven  but not less than nine, as the State Government may nominate to represent that Government, the industry, the contractors, the workmen and any other interests which, in the  opinion of  the State  Government, ought  to be represented on the State 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 other conditions  of service  of, the  procedure to be followed in the discharge of  their functions  by, and the manner of filling vacancies among, the  members of  the State  Board  shall  be  such  as  may  be prescribed:

Provided that  the number  of members  nominated to represent the workmen shall  not be  less than  the number  of members  nominated to represent the principal employers and the contractors..

5)      Power to constitute  committees.-

1)      The Central Board or the State 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)      Provided that no fees 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.

 

 

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