The employment of contract labour cannot be completely ruled out under the circumstances, the government, committed as it is to ideal of social justice could adopt only the middle course i.e., regulating the employment of contract labour in certain establishments and abolishing it in other establishment. In view of the above, this Act was formulated.
Applicability
1. To every Establishment where 20 or more contract workmen are employed/ were employed in previous 12 months, and
2. To every Contractor who employs 20 or more workmen /employed in previous 12 months
DEFINITIONS.
"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 situated;
(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;
"Contractor",
means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or 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;
"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;
"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 under this Act;
"Principal employer"
means
(i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf,
(ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named,
(iii) in a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named,
(iv) in any other establishment, any person responsible for the supervision and control of the establishment.
Explanation : For the purpose of sub-clause (iii) of this clause, the expressions "mine", "owner" and "agent" shall have the meanings respectively assigned to them in clause (j), clause (l) and clause (c) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952);
"Wages"
shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936);
"Workman"
means, any person employed, in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied but does not include any such person –
(A) who is employed mainly in a managerial or administrative capacity; or
(B) who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or
(C) who is an out-worker, that is to say, a person to whom any articles and materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the principal employer and the process is to be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer.
(2) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir shall, in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State.
Main Provisions of the Act
· Registration of Establishment - Principal Employer (PE) should apply for Registration of the establishment.
· At any given time, there should be only that number of contract labour (or less) as specified in the Registration Certificate.
· An establishment which is not registered under this Act cannot employ Contract Labour
· License for Contractors- All the contractors covered under this Act have to obtain a License for employing contract labour in a particular establishment.
· License is valid for specified period and can be renewed on payment of fees
· License contains conditions like payment of wages to contract labour, number of contract labour, hours of work, etc
· Prohibition of Contract Labour – The Appropriate government may prohibit Contract Labour in a particular employment in consultation with the Contract Labour Advisory Board .The following aspects should be considered by appropriate government before prohibiting employment of contract labour
· Whether work is incidental or necessary to industry, trade, business
· Whether work is of perennial nature
· Whether the work is ordinarily done through regular employees
· Whether the work is sufficient to employ a considerable no. of whole time employees
· Amenities for Contract Labour -
The following amenities are to be provided by the Contractor to the Contract Labour:
· Canteens – when 100 or more contract labours are employed
· Rest Rooms – when contract labour is required to halt at night
· Wholesome drinking water
· Latrines and urinals
· Washing facilities
· First Aid facilities – First Aid box with prescribed contents
The Principal Employer should provide the above facilities if the contractor fails to provide the same. However, the principal Employer can deduct the expense incurred in providing the above facilities to the contract labour from the bill of contractor.
· Payment of Wages to Contract Labour – The payment of wages to the contract labour has to be witnessed and duly certified by an authorized representative of the principal employer.
· Important Points
· Registration certificate should be amended whenever the number of Contract Labour engaged changes.
· Before making the payment to the contractor following should be taken from the Contractor:
¨ Copy of PF/ESI Challan
¨ Declaration from the Contractor specifying the names of the employees for whom contributions have been made.
· Wages should be paid to Contract Labour in the presence of Authorized representative.
· Direct supervision of Contract Labour should not be done.
· Leave Permission/ID Card/Entry pass of contract employees should not be signed by the Company employees.
· Contract should not specify the number of persons but the quantity of work.
Applicability
1. To every Establishment where 20 or more contract workmen are employed/ were employed in previous 12 months, and
2. To every Contractor who employs 20 or more workmen /employed in previous 12 months
DEFINITIONS.
"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 situated;
(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;
"Contractor",
means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or 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;
"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;
"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 under this Act;
"Principal employer"
means
(i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf,
(ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named,
(iii) in a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named,
(iv) in any other establishment, any person responsible for the supervision and control of the establishment.
Explanation : For the purpose of sub-clause (iii) of this clause, the expressions "mine", "owner" and "agent" shall have the meanings respectively assigned to them in clause (j), clause (l) and clause (c) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952);
"Wages"
shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936);
"Workman"
means, any person employed, in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied but does not include any such person –
(A) who is employed mainly in a managerial or administrative capacity; or
(B) who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or
(C) who is an out-worker, that is to say, a person to whom any articles and materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the principal employer and the process is to be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer.
(2) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir shall, in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State.
Main Provisions of the Act
· Registration of Establishment - Principal Employer (PE) should apply for Registration of the establishment.
· At any given time, there should be only that number of contract labour (or less) as specified in the Registration Certificate.
· An establishment which is not registered under this Act cannot employ Contract Labour
· License for Contractors- All the contractors covered under this Act have to obtain a License for employing contract labour in a particular establishment.
· License is valid for specified period and can be renewed on payment of fees
· License contains conditions like payment of wages to contract labour, number of contract labour, hours of work, etc
· Prohibition of Contract Labour – The Appropriate government may prohibit Contract Labour in a particular employment in consultation with the Contract Labour Advisory Board .The following aspects should be considered by appropriate government before prohibiting employment of contract labour
· Whether work is incidental or necessary to industry, trade, business
· Whether work is of perennial nature
· Whether the work is ordinarily done through regular employees
· Whether the work is sufficient to employ a considerable no. of whole time employees
· Amenities for Contract Labour -
The following amenities are to be provided by the Contractor to the Contract Labour:
· Canteens – when 100 or more contract labours are employed
· Rest Rooms – when contract labour is required to halt at night
· Wholesome drinking water
· Latrines and urinals
· Washing facilities
· First Aid facilities – First Aid box with prescribed contents
The Principal Employer should provide the above facilities if the contractor fails to provide the same. However, the principal Employer can deduct the expense incurred in providing the above facilities to the contract labour from the bill of contractor.
· Payment of Wages to Contract Labour – The payment of wages to the contract labour has to be witnessed and duly certified by an authorized representative of the principal employer.
· Important Points
· Registration certificate should be amended whenever the number of Contract Labour engaged changes.
· Before making the payment to the contractor following should be taken from the Contractor:
¨ Copy of PF/ESI Challan
¨ Declaration from the Contractor specifying the names of the employees for whom contributions have been made.
· Wages should be paid to Contract Labour in the presence of Authorized representative.
· Direct supervision of Contract Labour should not be done.
· Leave Permission/ID Card/Entry pass of contract employees should not be signed by the Company employees.
· Contract should not specify the number of persons but the quantity of work.
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