The Contract Labour (Regulation and Abolition) Act, 1970

Objective and scope of the Act The objective and scope of the Act are:

To prevent exploitation of contract labour.
To provide proper and habitable working conditions.
To regulate the functioning of the advisory boards.
To lay down the rules and regulations regarding the registration procedure of the establishments employing contract labour.
To state the necessary requirements and the procedure of licensing of contracts.
To provide the penal provisions in case of violation of offences under the Act.
Applicability of the Contract Labour (Regulation & Abolition) Act, 1970

Section 1(4) mentions the establishments where the Act will be applicable:

Any establishment where twenty or more workmen are employed or were associated as contract labour on any day during the preceding twelve months.
Any contractor who employs or employed twenty or more workmen as contract labour on any day of the preceding twelve months.
The Act is also applicable to every establishment if the workmen are employed in the establishment as ‘contract labour’. Section 2(b) of the Act states that a workman is deemed to be employed as contract labour 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.
The Act does not apply to any organisation or establishments where any work of intermittent or casual nature is performed. The Act states that a work is deemed to be of intermittent nature if it is performed for less than 120 days in the preceding twelve months or it is of non-seasonal character and is performed for less than 60 days in a year.
The Act is not applicable to a person who is appointed in an advisory or managerial capacity.