Page 81 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations Gopika Juneja, Lovely Professional University

Notes Unit 4: Contract Labour
(Regulation and Abolition) Act, 1986

CONTENTS
Objectives
Introduction
4.1 Contract Labour
4.1.1 Constitutional Prohibition

4.1.2 Concepts and Defi nitions
4.2 Labour Laws in China
4.3 Summary

4.4 Keywords
4.5 Self Assessment
4.6 Review Questions
4.7 Further Readings

Objectives

After studying this unit, you will be able to:
Discuss Contract Labour Act, 1986
Explain labour law in China

Introduction

Outsourcing and contracting has become a business necessity in order to be competitive. At the
same time, contract labour is one of the most exploited sections of human labour. A good number
of contract labourers are employed in selected industries. Occupations in which they are employed
vary from that of purely unskilled employment such as loader, cleaner, sweeper and Khalasi to
that of skilled employment such as polisher, turner, gas cutter and riveter in oil distribution,
and driller, blaster, blacksmith, carpenter and fi tter. Apart from these, there are certain regular
processes such as nickel polishing and electroplating in engineering establishments, dyeing,
bleaching and printing in some units in textiles and designing and raising work in almost all
carpet manufacturing units where contract labour is common.

For several years, contract labour has been paid low wages, employed for longer hours of work
and on sub-contract basis, placed in unhealthy working conditions and denied benefi ts and
facilities equal to their counterparts who are employed under regular employment. Further, there
is no security of tenure. Instances are not lacking where contract labour has been victimised.

Moreover, contract labourers are generally not entitled to other benefits and amenities such as
provident fund, gratuity, bonus, privilege leave, medical facilities, subsidised food and housing,
to which the regular workman of the company are entitled. Thus, there is wide disparity in
emoluments and working conditions between contract labour and direct labour and he is not
treated at par with direct labour. Even in cases where the work was of a permanent nature,

contract system was introduced to deny the workman’s rights and benefits, which the industry
gave to its directly recruited workers.

76 LOVELY PROFESSIONAL UNIVERSITY