Labour Licence

The Contract Labour (Regulation and Abolition) Act, 1970 is a regulatory framework that governs the employment of contract labour in certain establishments and mandates its abolition in specific circumstances. The Act was enacted with the primary objective of providing a legal framework for the employment of contract labour and protecting the interests of workers employed under this system.

This Act is applicable to all establishments where twenty or more workmen are employed or were employed on any day of the preceding 12 months as contract labour, as well as to all contractors who employ or have employed twenty or more workmen on any day of the preceding 12 months. The Act, however, does not apply to establishments where work is only of an intermittent or casual nature is performed.

The Contract Labour (Regulation and Abolition) Act, 1970 is crucial in ensuring that the employment of contract labour is carried out under regulated conditions that guarantee fair wages, safe working conditions, and social security benefits to workers. The Act seeks to provide a legal framework that regulates the relationship between the contractor and the contract labour, and mandates the contractor to ensure compliance with various labour laws, including payment of minimum wages, working hours, and leave entitlements.

Under the Act, the contractor is required to obtain a license from the appropriate government authority before employing contract labour in any establishment. The license is valid for a specific period and is subject to renewal on expiry. The contractor is also required to maintain various registers, including a register of contractors, a register of workers employed, and a register of wages, among others.

In conclusion, the Contract Labour (Regulation and Abolition) Act, 1970, is a critical piece of legislation that regulates the employment of contract labour in India. The Act provides for the protection of the rights of contract labourers and ensures that their working conditions are safe and satisfactory. It is essential for contractors and establishments to adhere to the provisions of this Act to avoid legal consequences and safeguard the welfare of their workers.