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Friday, October 1, 2010

The Contract Labour (Regulation and Abolition) Act, 1970

Objects:

The Act aims to prevent the exploitation of workers under the contact labour system. This Act seeks to regulate the employment of contract labour in certain establishments and to provide for its abolition under certain circumstances.

Applicability:

This Act applies to every establishment in which 20 or more workmen are employed or were employed on any day on the preceding 12 months as contract labour and to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen. It does not apply to establishments where the work performed is of intermittent or casual nature. The Act also applies to establishments of the Government and local authorities as well


Registration of Establishment:

The establishments to whom this Act applicable are required to be registered as the Principal Employer. Application (under subsection (1) of section 7) for registration shall be made in triplicate Form I to the registering officer of the area in which the establishment sought to be registered. Certificate of Registration (under subsection (2) of section 7) shall be granted in Form II. Any changes in the particulars specified in the Certificate of registration, the principal employer shall intimate the registering officer within 30 days from the date of such change along with the particulars and reasons for such change.

License for Contractor:

Every contactor to whom this Act applicable is required to obtain a License and should not undertake any activity except in accordance with the License. Application shall be made in triplicate Form IV to the licensing authority of the area in which contractor is located. License shall be granted in Form V.

Registration / License Fee in Karnataka:
No. of Employees
Registration Fee (in Rs.)
License Fee (in Rs.)
20
150.00
100.00
21 - 50
375.00
150.00
51 - 100
750.00
300.00
101 - 200
1500.00
500.00
201 - 400
3000.00
1000.00
More than 400
3750.00
1250.00


Obligations


The Act puts obligations on the contractors for the establishment of canteens, rest rooms, first aid, drink water, latrines and urinals, Washing facilities etc. In case of failure on the part of the contractor to provide such facilities, the principal employer is liable for providing such services.

The contractor is required to disburse the wages in the presence of authorised representative of the principal employer. No wage period shall exceed one month. In case of failure on the part of the contactor to pay the wages either in part or in full, the principal employer is liable to pay the same. Wages shall be paid before the expiry of 7th day of the wage period if the contractor/establishment employed less than 1000 workers and before the expiry of 10th day of the wage period in other cases.


Registers and Records
Principal Employer should maintain following records

1. Register of contractors in Form XII
2. Annual Return in Form XXV


Contactor should maintain following records

1. Register of persons employed in Form XIII
2. Employment Card shall be issued in Form XIV within 3 days of employment of worker
3. Service Certificate shall be issued to the worker in Form XV on termination of employment.I
4. Wage slip shall be issued in Form XIX
5. Register of Wages in XVII

All such Registers and records shall be preserved in original and kept for a period of 3 calendar years from the date of last entry therein.

Every employer shall, within 15 days of commencement or completion of each contract work, submit a return to the inspector, intimating the date of commencement or as the case may be, of completion of work in Form VI B.


Returns

Particluars
Due date
Form No.
Responsible person
Authority
Section / Rule
Half Yearly Return
On or before 30 days from the closure of the year
Form XXIV
Contractor
Assistant Labour commissioner of the concerned area
Sec 11 & Rule 82 (1)
Annual Return
On or before 15th February of the subsequent year
Form XXV
Principal Employer
Assistant Labour commissioner of the concerned area
Sec. 6 & Rule 82(2)

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