Contract Labour (Regulation & Abolition) Act, 1970

Objective and Applicability of the Contract Labour (Regulation & Abolition) Act, 1970 – The main purpose of the CLRA Act, 1970 is to regulate the employment of contract labours. It is applicable to an establishment also known as the principal employer that engages 20 or more contract labours and also to the contractor through whom such 20 or more contract labours are engaged.

Registration and Revocation of Licence – The principal employer or the contractor must obtain the necessary licence for the purpose of registration after payment of prescribed fees. The licence is valid for a particular period and can be revoked when it is obtained through misrepresentation or suppression of material facts.

Prohibition on Contract Labours’ Employment – Only the “Appropriate Government” by way of issuing a notification can prohibit employment of contract labours.

Responsibilities of The Contractors – If a contractor engages 100 or more contract labours, then he must provide facilities like canteens, first aids, latrines, drinking water, rest rooms etc.

Payment of Wages – The contractor should pay wages as fixed or prevailing to the contract labours in timely manner in presence of a representative of the principal employer.

Liability of the Principal Employer – The principal employer shall ensure the provisions of toilets, rest rooms, drinking water, canteen etc. to the contract labours. However, the principal employer is also entitled to recover the cost of such provisions provided by him while making payment to the contractor.

For further information related to Contract Labour Act, please contract a Kolkata based Labour Law Advocate specialized in contract labour matters.