Page 118 - DMGT516_LABOUR_LEGISLATIONS

Unit 5: The Contract of Employment

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

An Act to regulate the employment of contract labour in certain establishments and to provide
for its abolition in certain circumstances and for matters connected therewith. Enacted by
Parliament in the Twenty-first Year of the Republic of India as follows:
1. Short title, extent, commencement and application: (1) This Act may be called the Contract
Labour (Regulation and Abolition) Act,
(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 ––––––––––––––––
––––––––––––––––––- 1. 10th February, 1971; vide Notification No. G.S.R. 190 dated
1-2- 1971, Gazette of India, 1971, Pt. II, Sec. 3(i), p.173. 502 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, – 1*[(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 for any 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; ––––––––––––––––––––––––––––––––––- 1. Subs. by Act 14
of 1986, s. 2 (w.e.f. 28.1.1986). 503 (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
* Received assent of the President on 5.9.1970. Published in Gazette of India on 7.9.1970.

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