{"id":42502,"date":"2022-04-22T11:41:25","date_gmt":"2022-04-22T06:11:25","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=42502"},"modified":"2023-04-04T16:09:28","modified_gmt":"2023-04-04T10:39:28","slug":"contract-labour-act-synopsis-of-key-provisions","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/","title":{"rendered":"Contract Labour Act: A Synopsis of Key Provisions"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Contract labour Act seeks to regulate the\nhiring and operation of contract labour in certain establishments and provides\nfor its closure in specific scenarios and affairs connected therewith. The\nwrite-up aims to shed some light on different facets of this Act, such as\napplicability, norms, registration, contractor&#8217;s obligations, etc.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Applicability_of_Contract_Labour_Act\" >Applicability of Contract Labour Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#What_is_the_legal_definition_of_the_Principal_Employer\" >What is the legal definition of the Principal Employer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Provisions_around_Registration_of_Establishment_its_fee\" >Provisions around Registration of Establishment &amp; its fee:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Norms_around_Revocation_of_Registration_certificate_its_amendment\" >Norms around Revocation of Registration certificate &amp; its amendment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Changes_in_the_Registration_certificate\" >Changes in the Registration certificate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Provisions_for_Licensing_of_Contractor_and_renewal_of_a_certificate\" >Provisions for Licensing of Contractor and renewal of a certificate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Obligations_of_the_contractor_on_account_of_labour_welfare\" >Obligations of the contractor on account of labour welfare<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Obligations_of_the_contractor_on_account_of_wage_payment\" >Obligations of the contractor on account of wage payment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Obligations_of_Principal_Employer\" >Obligations of Principal Employer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Post_compliances_for_contractors\" >Post compliances for contractors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Penalties_under_the_Contract_Labour_Act\" >Penalties under the Contract Labour Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/corpbiz.io\/learning\/contract-labour-act-synopsis-of-key-provisions\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_Contract_Labour_Act\"><\/span>Applicability of Contract Labour Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Contract labour Act applies to every\nestablishment, technically known as Principal Employer, in which 20 or more\nlabours are employed or were hired on any day of the preceding one year as\ncontract labour. It also applies to contractors who hire or who hired on any\nday of the past 12 months 20 or more labours.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_legal_definition_of_the_Principal_Employer\"><\/span>What is the legal definition of the Principal Employer?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following shall be referred to as the Principal Employer as per the <strong>Contract labour law<sup><a href=\"https:\/\/clc.gov.in\/clc\/acts-rules\/contract-labour-act\"><strong>[1]<\/strong><\/a><\/sup>\n;<\/strong><\/p>\n\n\n\n<ul><li>The <strong><em>head<\/em><\/strong>\nin the case of an office or the government department or the local authority<\/li><li>the <strong><em>owner\nor occupier, or manager<\/em><\/strong> in case of a factory<\/li><li>The\nperson handling the overall affairs of the establishment<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Provisions_around_Registration_of_Establishment_its_fee\"><\/span>Provisions around Registration of Establishment &amp; its fee:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\nPrincipal Employer of the Act-governed establishment is required to get\nregistered with the Assistant Labour Commissioner or the Labour-cum\nConciliation officer by filing form-1 in triplicate in case of offline mode\nalong with the applicable fee.<\/li><li>The\nRegistering Officer shall grant the certificate of registration within 30 days\nof receiving the application form. However, the grant of the said registration\nwould not be possible in cases where the application is found incorrect or\nmisleading.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Norms_around_Revocation_of_Registration_certificate_its_amendment\"><\/span>Norms around Revocation of Registration certificate &amp; its amendment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The concerned officer can revoke a Certificate of Registration  if it is secure by suppression or misrepresentation of facts etc. However, the cancellation shall remain on hold until the principal employer puts his\/her case before the hearing committee.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Changes_in_the_Registration_certificate\"><\/span>Changes in the Registration certificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Licensee should intimate the authority on\nthe following events that occurred in the course of the business. Accordingly,\nthey must apply for a change in the registration certificate <\/em><\/strong><\/p>\n\n\n\n<ul><li>Any\nchanges occur on account of the establishment.<\/li><li>The\nhiring of additional labour<\/li><li>The\nshift of registered office<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Provisions_for_Licensing_of_Contractor_and_renewal_of_a_certificate\"><\/span>Provisions for Licensing of Contractor and renewal of a certificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Every\ncontractor falling under the Contract Labour Act is mandated to secure a\nlicense by filing form IV in triplicate with the respective Assistant Labour\nCommissioner and the applicable fee. The applicant is also required to submit a\nsecurity fee of Rs 270\/-per worker (this cost may vary state-wise).<\/li><li>The\ncontractor can renew the contract labour license by applying Form VII in\ntriplicate and a standard fee.<\/li><li>The\nvetting\/concerned officer shall grant the contract labour license within 30\ndays of the receipt of the application, provided there is no loophole therein.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Obligations_of_the_contractor_on_account_of_labour_welfare\"><\/span>Obligations of the contractor on account of labour welfare<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the Contract Labour Act,\nwhere 100 or more contract labour is operational in one or more canteens, the\ncontractor is liable to provide the following amenities without failure.<\/p>\n\n\n\n<ul><li>First\naid facilities,<\/li><li>Restrooms,<\/li><li>Drinking\nwater,<\/li><li>Latrines\nand washing facilities etc.<\/li><\/ul>\n\n\n\n<p>If the contractor does not meet such a\ncondition, the Principal Employer will be accountable for addressing such\nobligation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Obligations_of_the_contractor_on_account_of_wage_payment\"><\/span>Obligations of the contractor on account of wage payment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A contractor is obligated to make timely\npayment of wages in the presence of authorized officials of the principal\nemployer. The wages rate should not be less than the standard rate as\nprescribed by the State Government.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Obligations_of_Principal_Employer\"><\/span>Obligations of Principal Employer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Every principal employer falling under\nthe Contract Labour Act is liable to; <\/em><\/strong><\/p>\n\n\n\n<ul><li>Maintain\na register of contractors in Form XXV in duplicate<\/li><li>File\nannual return in Form XXV (in duplicate) before Feb 15.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post_compliances_for_contractors\"><\/span>Post compliances for contractors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Every contractor falling under the\nContract Labour Act is liable to maintain; <\/em><\/strong><\/p>\n\n\n\n<ul><li>Register\nof labour in form XIII<\/li><li><strong><em>muster\nroll* register<\/em><\/strong> of\nwages in form XVI &amp; Form XVII when combined<\/li><li>register\nof deductions for damages or loss in Form XX<\/li><li>Register\nof wage-cum-muster roll in form XVII where the wage period is fortnightly or\nless<\/li><li>Register\nof Overtime in Form XXIII<\/li><li>Register\nof advances in Form XXII<\/li><li>Register\nof fines in Form XXI<\/li><\/ul>\n\n\n\n<p>Apart from that, the contractor is also\nliable to file half a yearly return in the form prescribed by the Act.<\/p>\n\n\n\n<p><strong><em>(Note: The Form number mentioned above\nmay vary state-wise) <\/em><\/strong><\/p>\n\n\n\n<p><strong><em>What is Muster Roll*?<\/em><\/strong><\/p>\n\n\n\n<p>Muster Roll is a list of labour operational in an establishment or a <a href=\"https:\/\/corpbiz.io\/factory-license\"><strong>factory <\/strong><\/a>for <strong>attendance management. It is commonly known as <\/strong>the employee attendance register.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_under_the_Contract_Labour_Act\"><\/span>Penalties under the Contract Labour Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\ndefaulter may be subjected to three months of jail terms or a monetary fine up\nto Rs 500 or both in case he\/she is found guilty of obstructing the inspector\nor failing to share the register during vetting.<\/li><li>There\nis a provision for three months of imprisonment or a fine up to Rs. 1000\/ for\nbreaching the provisions of the Contract Labour Act.<\/li><li>Plus,\nthe authority concerned can slap a penalty of Rs 100 per day in case of\ncontinuing contravention.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Contract Labour Act fosters labour well-being and welfare through different provisions. After being registered, the contractor becomes liable for ensuring transparent labour management. The Act also takes care of the minimum wages paid to the labour and seeks to penalize those who breach norms around it.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/factory-license-applicability\/\">Factory License Applicability: Mandatory Facts\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contract labour Act seeks to regulate the hiring and operation of contract labour in certain establishments and provides for its closure in specific scenarios and affairs connected therewith. The write-up aims to shed some light on different facets of this Act, such as applicability, norms, registration, contractor&#8217;s obligations, etc. Applicability of Contract Labour Act Contract [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":42504,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2386],"tags":[2285],"acf":{"service_id":"220"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5921,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42502"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=42502"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42502\/revisions"}],"predecessor-version":[{"id":54406,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42502\/revisions\/54406"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/42504"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=42502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=42502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=42502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}