The Contract Labour (Regulation and Abolition) Act, 1970

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.