THE CONTRACT LABOUR (R&A) ACT, 1970
The main
object of Contract Labour (Regulation
& Abolition) Act, 1970 is to govern the employment of contract labour in
certain establishment and to provide for its abolition is certain situation and
for matters connected therewith. Every Principal Employer covered are required to obtain Registration Certificate under CLRA and every Contractor covered under this Act are required to obtain Contract Licence
APPLICABILITY
The Contract
Labour (Regulation and Abolition), Act, 1970 applies to:
1.
Establishment
in which 20 or more workmen are employed or were employed on any day of the
preceding 12 months, as a contractor
2.
Contractor
who employs or who employed 20 or more workmen
on any day of the preceding 12 months (Section 1)
REGISTRATION
Registration by Principal Employer
1.
Principal
Employer means the owner or occupier or the person who executes ultimate
control and supervision and manages the affairs of the establishment
2.
Every
Principal Employer is required to register his establishment under the Act and
obtain the Certificate of Registration
3.
For this
purpose the Principal Employer shall make an application in Form I in
triplicate with other relevant documents as may be prescribed in the Act, to
the Registering officer , within the stipulated time (Section 7)
Registration (Licence) by the Contractor
1.
Contractor
in relation to the establishment 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
2.
Every
Contractor is required to obtain licence before executing any work through
contract labour
3.
For this
purpose the an application in Form IV is required to be submitted in
triplicate, along with other relevant prescribed documents, to the Licensing
Officer of the area in which the Principal Employer's establishment is located
(Section 12, Rule 21)
EFFECT OF
NON-REGISTRATION
If the Principal Employer does not get registration under Section
7 and /or the contractor does not get
the licence under Section 121 of the Contract Labour (R&A) Act, 1970, then
the person appointed by the Contractor shall be deemed to be the direct
employee of the Principal Employer
REVOCATION
OF REGISTRATION
When the Registration Certificate is obtained by misrepresentation
or suppression of material facts etc. after giving the Principal Employer the
opportunity of being heard to the Principal Employer (Section 9)
REVOCATION
OR SUSPENSION & AMENDMENT OF LICENCES
The Licenses
of the Contractor shall be revoked and suspended under following circumstances:
1.
Licence
obtained by the Contractor by misrepresentation or suppression of the material
facts.
2.
Failure of
the Contractor to comply with the conditions contravention of the Act or the
Rule (Section14)
LIABILITY OF
PRINCIPAL EMPLOYER
The
Principal Employer must ensure the following:
1.
Facilities for canteen, restrooms,
sufficient supply of drinking water, latrines and urinals, washing
2.
To recover from the contractor for
providing such amenities or to make deductions from amount payable (Section 20)
REPONSIBILITY
OF THE CONTRACTOR FOR PAYMENT OF WAGES
The
Contractor must ensure the following:
1.
Pay wages on
time
2.
Disbursement
of wages in the presence of authorized representative of the principal employer
3.
Rates of
wages not less than the rates as fixed or prevailing in such employment as
fixed by the agreement
REGISTERS
Principal
Employer
·
Maintenance
of register of contractors in respect of every establishment in Form XII(Rule
74)
Contractor
·
Maintain
register of workers for each registered establishment in Form XIII
·
Issue an
Employment Card to each worker in Form XIV
·
Issue
Service Certificate to every workman on his termination in Form XV (Rules 75,
76 & 77)
RETURNS
For Principal
Employer
·
Annual Return Form XXV in duplicate is
required to be submitted before 15th Feb following the end of the
concerned year
For Contractor
·
Contractor -
Half yearly return in Form XXIV in duplicate is required to be submitted within
30 days (Rule 82)
MUSTER ROLL,
WAGES REGISTER, DEDUCTION REGISTER AND OVERTIME REGISTER TO BE MAINTAINED/
DISPLAYED BY CONTRACTOR
1. Form-XVI Muster Roll
1.
Maintain Muster Roll and a Register of
Wages in Form XVI & Form XVII respectively when combined
2.
Register or wage-cum-Muster Roll in
Form XVII where the wage period is a fortnight or less
3.
Maintain a Register of Deductions for
damage or loss, Register of Fines and Register of Advances in Form XX, Form XXI
& Form XXII respectively
4.
Maintain a Register of Overtime in
Form XXIII
5.
To issue wage slips in Form XIX, to
the workmen at least a day prior to the disbursement of wages.
6.
Obtain the signature or thumb
impression of the worker concerned against the entries relating to him on the
Register of wages or Muster Roll-Cum-Wages Register
7.
When covered by Payment of Wages Act,
register and records to be maintained under the rules
8.
Muster Roll, Register of wages,
Register of Deductions, Register of Overtime, Register of Fines, Register of
Advances, Wage Slip (Rule 79)
9.
To display an abstract of the Act and
Rules in English & Hindi and in the language spoken by the Majority of
workers in such forms as may be approved by appropriate authority (Rule 80)
10.
To display notices showing rates of
wages, hours of work, wage period, dates of payment, names and address of the
inspector and to send copy to the inspector and any change for with (Rule 81)
PENALTIES
1.
OBSTRUCTIONS
(SECTION 22)
·
For
Obstructing the Inspector
·
Failing to
produce registers etc
Penalty- Imprisonment
of 3 months or fine upto Rs. 500 or both
2.
VIOLATION (SECTION
23)
·
For
violating the provisions of Act or the Rules
Penalty-
Imprisonment of 3 months or fine upto Rs. 1000
o
On continuing
contravention
Penalty- Additional
fine upto Rs. 100 per day
