About CONTRACT LABOUR ACT 1970

The Contract Labour (Regulation and Abolition) Act of 1970 is a central law that governs the employment of contract labor throughout India. The Rajasthan state government enforces this act through its own set of rules, including the Rajasthan Contract Labour (Regulation and Abolition) Rules, 1971.

Applicability and scope in Rajasthan

• Threshold for applicability: In Rajasthan, the act applies to any establishment or contractor that employs 50 or more contract workers. This is a modification of the central act, which originally set the limit at 20 or more.
• Government power to alter threshold: The Rajasthan government can, by official notification and with two months' notice, apply the act to establishments employing fewer than 50 workers.
• Establishment coverage: The law applies to every establishment in which 50 or more workmen are employed, or were employed, on any day of the preceding 12 months as contract labor.
• Contractor coverage: It also applies to every contractor who employs, or employed, 50 or more workers on any day of the preceding 12 months.
• Exclusions: The act does not apply to establishments where work is purely of an intermittent or casual nature.

Key provisions enforced in Rajasthan

• Welfare and health: Contractors and principal employers are responsible for providing essential amenities to contract labor, including canteens, rest-rooms, and first-aid facilities.
• Wage payment: The contractor is responsible for paying wages. If the contractor fails to do so, the principal employer is legally obligated to make the payment and can recover the amount from the contractor.
• Nominated representative: Principal employers must appoint a representative to be present during wage disbursement by the contractor. This representative must certify the payment.
• Licensing and registration: The act requires the registration of establishments and the licensing of contractors who employ contract labor. Specific forms are prescribed for this purpose, such as Form I for registration.
• Maintenance of records: Principal employers and contractors must maintain registers and other records regarding contract labor, including their nature of work, wages, and working hours.

Implementing rules in Rajasthan

The state government implemented the Rajasthan Contract Labour (Regulation and Abolition) Rules in 1971 to provide specific regulations for enforcing the central act. These rules outline administrative procedures, forms for registration and licensing, and other specific state-level requirements.