The Contract Labour (Regulation and Abolition) Act, 1970
The Contract Labour (Regulation and Abolition) Act, 1970, Act No. 37 of 1970, was enacted by Parliament on 5 September 1970 to regulate contract labour in certain establishments and allow its abolition in certain circumstances. It requires covered establishments to be registered, provides for contractor licensing, worker welfare and wage responsibilities, and creates advisory and enforcement arrangements. The supplied text includes an amendment made by Act 14 of 1986, effective from 28 January 1986, to the definition of the appropriate Government.
What the law governs
The Contract Labour (Regulation and Abolition) Act, 1970, Act No. 37 of 1970, was enacted by Parliament on 5 September 1970 and extends throughout India. A notification cited in the supplied text brought it into force on 10 February 1971. Its purpose is to regulate contract labour in certain establishments and provide for abolition of contract labour in some circumstances.
The supplied text records that Act 14 of 1986 amended the definition of the appropriate Government with effect from 28 January 1986.
Who is covered
The Contract Labour (Regulation and Abolition) Act, 1970 generally applies to:
- An establishment that employed twenty or more contract workers on any day during the preceding twelve months.
- A contractor who employed twenty or more workers on any day during the preceding twelve months.
- Government offices, local authority offices, and places where an industry, trade, business, manufacture or occupation is carried on.
The appropriate Government may extend the law to establishments or contractors employing fewer than twenty workers after giving at least two months' notice through the Official Gazette.
The law does not apply to establishments where only intermittent or casual work is performed. Work is not treated as intermittent if it was performed for more than one hundred and twenty days in the preceding twelve months, or if seasonal work was performed for more than sixty days in a year.
Main requirements
The Contract Labour (Regulation and Abolition) Act, 1970 provides for:
- Central and State Advisory Contract Labour Boards.
- Registration of establishments employing contract labour.
- Licensing of contractors, including grant, suspension, amendment and revocation of licences.
- Canteens, rest rooms, other facilities and first aid for contract workers.
- Responsibility for payment of wages and liability of the principal employer in certain cases.
- Inspectors, registers, records, penalties and prosecution procedures.
A principal employer of a covered establishment must apply to the registering officer in the prescribed manner. An establishment that is not registered within the fixed period, or whose registration has been revoked, cannot employ contract labour.
Relevance to property owners and businesses
The Contract Labour (Regulation and Abolition) Act, 1970 is relevant where a property is used as an establishment and contract workers are engaged there. The person responsible for supervision and control may be the principal employer in establishments not specifically classified as government offices, factories or mines.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this law apply merely because I buy or own property in Tamil Nadu?
Property ownership alone is not listed as a trigger. The law becomes relevant when the property is an establishment where contract labour is employed and the stated coverage conditions are met.
When must an establishment register under this law?
A principal employer of a covered establishment must apply for registration within the period fixed by the appropriate Government. A late application may be accepted if the registering officer is satisfied that there was sufficient cause for the delay.
Can an unregistered establishment employ contract workers?
No. A covered establishment that was not registered within the fixed period, or whose registration was revoked, cannot employ contract labour.
Does the law apply to short term or casual work?
It does not apply to establishments where only intermittent or casual work is performed. However, work exceeding one hundred and twenty days in the preceding twelve months, or seasonal work exceeding sixty days in a year, is not treated as intermittent.
