Wednesday 11 January 2012


Contract Labour (Regulation and Abolition) Act, 1970
The Government of India has been deeply concerned about the exploitation of workers under the contract labour system. With a view to removing the difficulties of contract labour and bearing in mind the recommendations of various commissions and committees and the decisions of the Supreme Court, particularly in the case of Standard Vacuum Refining Company in 1960, the Contract Labour (Regulation and Abolition) Act was enacted in 1970. This Act seeks to regulate the employment of contract labour in certain establishments and to provide for its abolition under certain circumstances.
Contract Labour, by and large, is neither borne on pay roll or muster roll nor is paid wages directly. The establishments, which farm out work to contractors, do not own any direct responsibility in regard to their labourers. Generally, the wage rates to be paid and observance of working conditions are stipulated in agreements but in practice they are not strictly adhered to.
The main features of the Act can be summarised thus:-
The 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.
The Central Government and the State Governments are required to set up Central Advisory Board and State Advisory Boards, which are authorised to constitute Committees as deemed proper. The functions of the Boards are advisory, on matters arising out of the administration of the Act as are referred to them. The Boards carry out the functions assigned to them under the Act.
The establishments covered under the Act are required to be registered as the Principal Employer. Likewise, every contractor to whom the Act applies is required to obtain a licence and not to undertake or execute any work through contract labour except under and in accordance with the licence issued.
The Act has provided for establishment of canteens. For the welfare and health of contract labour, provision is made for restrooms, first aid, wholesome drinking water, latrines and urinals. In case of failure on the part of the contractor to provide such facilities, the Principal Employer is made liable to provide the amenities.
The contractor is required to pay wages and a duty is cast on him to ensure disbursement of wages in the presence of the authorised representative of the Principal Employer. In case of failure on the part of the contractor to pay wages either in part or in full, the Principal Employer is liable to pay the same. In case the contract labour perform same or similar kind of work as regular workmen, they will be entitled to the same wages and service conditions as regular workmen as per the Contract Labour (Regulation and Abolition) Central Rules, 1971.
The Act makes provision for the appointment of Inspecting staff, for maintenance of registers and records, for penalties for the contravention of the provisions of the Act and Rules made thereunder and for making Rules for carrying out the purpose of the Act. In the central sphere, officers of the CIRM have been appointed as Inspectors.
Apart from the regulatory measures provided under the Act for the benefit of the contract labour, the ‘appropriate government’ under section 10(1) of the Act is authorised, after consultation with the Central Board or State Board, as the case may be, to prohibit, by notification in the official gazette, employment of contract labour in any establishment in any process, operation or other work.
Sub-section (2) of Section 10 lays down sufficient guidelines for deciding upon the abolition of contract labour in any process, operation or other work in any establishment and the ‘appropriate government’ while taking action under this Section will have to take an overall picture of the industry carrying on similar activities. The guidelines furnished under sub-section (2) oblige the ‘appropriate government’ to consider, as relevant data, the material to which it must have regard. The Central Government on the recommendations of the Board has abolished contract labour system in a number of jobs in different industries and so far 76 notifications have been issued.


  1. sorting work is being done with contractor in rms v dn. The contract has been given by SRM RMS V Dn. The workers engaged for sorting are being paid Rs 4500/- for 26 days in a month at VSP RMS and Rs 5500/- at RJY RMS by the contractor. Kindly take up the issue with the appropriate authorities. BRANCH SECRETARY AIRMS MMS EU GP C RAJAHMUNDRY BRANCH.

  2. in RMS 'v'division the sorting work is given to contractor. it is against to the rules and no regular departmental work is to be contracterised as per the directions of the supreme court in this matter unfortunately it was done in this division. this issue may be taken up with the appropriate authorities and see that the contractorisation is cancelled.

    circle secretary
    AIRMS&MMS EU Group 'C'

  3. I am K.Muralidharan from Ch.Stg.Dvn. Ch. 600 008. At ch stg dvn. Out siders are working 100 Nos. All are working work hardly . Some out siders are educated. Here wages given Tamilnadu state Govt collectrate Wages only. All are suffer the poor wages given to outsiders . Tamilnadu State Govt Collectrate wages not eligible to Central Govt Employees. So.Kindly take action immediately and favourable orders to Out Siders. Wages Amount Per Hour 25.62Rs.Given.
    Thanking You,My E.Mail.I.D.
    Yours faithfully.
    A.I.P.E.D.E.U (NFPE)
    Br, sec ch. Stg.Dvn.Ch.600 008.

  4. sir iam sri anadijena working as daily wayges at balasore head post office orissa
    i have doing the work @50 rupess per days but this amout is very short to my famely
    i have inform our superitendent five to six time but no reaction so sir help me

  5. sir iam sri anadijena i have work as daily wayges worker at balasore head post office @50 rupees per
    day ihave inform our superitend 5to6time but no reacation of them 50 rupees is very short for my femely ihave work in balasore hpo eight year please sir help me

  6. sir i am trushar parekh i have work as seweeper post officein uttarsanda s.o ,i 18 year sarvice pls your inform reply

  7. sir i am trushar parekh i have work as seweeper post officein uttarsanda s.o ,i 18 year sarvice pls your inform reply