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  2. Contract Labour Act 1970

Contract Labour (Regulation & Abolition) Act, 1970

1.Object of the Act

To regulate the employment of contract labour in certain establishments and to provide tor Its abolition in certain circumstances and for matters connected therewith.


Areas and industries as notified by the Central Government.
Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen. Sec 1

3.Registration of


Principal employer employing 20 or more workers through the contractor or the contractor(s)on deposit of required lee in Form1.
Sec. 7

4.Prohibition of Employment of

Contract Labour

Only by the appropriate Government through issue of notification after consultation with the Board (and not Courts) can order the prohibition of employment of contract labour
Sec. 10

5.Revocation of Registration

When obtained by misrepresentation or suppression of material facts etc. after opportunity to the principal employer. Sec. 9

6.Licensing of Contractor

Engaging 20 or more than 20 workers and on deposit of required fee in Form IV.
Valid for specified period.
Sec. 12. Rule 21

7.Revocation or Suspension & Amendment of Licences

When obtained by misrepresen­tation or suppression of material facts.
Failure of the contractor to comply with the conditions or contravention of Act or the Rules
Sec. 14

8.Welfare measures to be taken by the Contractor

Contract labour either one hundred or more employed by a contractor for one or more canteens shall be provided and maintained

Flist Aid facilities.

Number of rest-rooms as required under the Act.

Drinking water, latrines and washing facilities.
Secs. 16 & 17

9.Laws, Agreement or Standing Orders inconsistent with the Act-Not Premissible

Unless the privileges in the contract between the parties are more favoureble than the prescribed in the Act, such contract will be invalid and the workers will continue to get more favourable benefits.
Sec. 30

10.Liability of Principal Emplloyer

To ensure provision for canteen, rest-rooms, sufficient supply of drinking water, latrines and urinals, washing facilities.

Principal employer entitled to recover from the contractor for providing such amenities or to make deductions from amount payable.
Sec. 20

11.Responsibility of Contractor for Payment of Wages

To pay timely and to ensure the disbursement of wages in the presence of the authorised representative of the principal employer.
Rate of wages not less than the rates as fixed or prevailing in such employement as fixed by agreement.
Sec. 21, Rule 25

12.Registers of Contractors

Principal employer

To maintain a register of contractors in respect of every establishment in Form Xll.
Rule 74


To maintain register of workers for each registered establishment
To issue an employment card to each worker in Form XIV.
To issue service certificate to every workman on his termination in Form XV.
Rules 75, 76 and 77


Contractor to send half yearly return in Form XXIV in dupllcate Within 30 days Princlpal mployer to send annual return In Form XXV In dupllcate before 15th Feb. following the end of the concerned year.

Rule 82

15.Muster Rolf, Wages Register, Deduction Register and Overtime Register by Contractor

Every contractor shall

Maintain Muster Roll and a Register of Wages In Form XVI and Form XVII respectively when combined.
Register or wage-cum-Muster Roll in Form XVII where the wage period is a fortnight or less.
Maintain a Register of Deductions for damage or loss, Register or Fines and Register of Advances in Form XX, form XXI and Form XXII respectively.
Maintain a Register of Overtime in Form XXIII.
To Issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement of wages.
Obtain she signature or thumb impression of the worker concerned against the entries relating to him on the Register of Wages or Muster Roll-cum-Wages Register
When covered by Payment of Wages Act, register and records to be maintained under these rules
Muster Poll,
Register of Wages,
Register of Deductions,
Register of Overtime
Register of Fines,
Register of Advances,
Wage slip.
To display an abstract of the Act and Rules In English and Hindi and in the language spoken by the majority of workers In such form as may be approved by appropriate authority.
To display notices showing rates of wages, hours of work, wage period, dates of payment, names and addresses of the Inspector and to send copy to the inspector and any change forthwith.
Secs. 16 & 17



Offence Punishment

Sec. 22


For obstructing the inspector or failing to produce registers etc. - 3 months 'Imprisonment or fine upto Rs.500, or both.

Sec. 23


For violation of the provisions of Act or the Rules, imprisonment of 3 months or fine upto Rs.1000. On continuing contravention, additional line upto Rs. 100 per day

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