{"id":45135,"date":"2022-07-08T14:28:10","date_gmt":"2022-07-08T08:58:10","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=45135"},"modified":"2022-07-08T14:30:53","modified_gmt":"2022-07-08T09:00:53","slug":"key-highlights-of-the-clra-act","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/key-highlights-of-the-clra-act\/","title":{"rendered":"Key Highlights of the CLRA Act"},"content":{"rendered":"\n<p>The Contract Labour (Regulation &amp; Abolition) Act, 1970&#8242; also known as the &#8220;CLRA Act&#8221;, was established to control the employment of contract workers in certain establishments. The primary purpose of this Act is to prevent the exploitation of the contract workers rights and introduce better working conditions for them. A worker is deemed employed as a Contract worker when hired through the contractor. In addition, the contract workers are indirect workers, they differ from direct workers in terms of the employment relationship with the establishment, a contract worker is a daily wager, and the contract workers are accumulated &amp; provide at the end of the month. The contractor&#8217;s role is to hire, supervise &amp; remunerate the contract workers. We will focus in this article only on the Key Highlights of the <a href=\"https:\/\/corpbiz.io\/clra-registration-and-licensing\"><strong>CLRA Act<\/strong><\/a>. \u00a0<\/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\/key-highlights-of-the-clra-act\/#The_Purpose_of_the_CLRA_Act\" >The Purpose of the CLRA 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\/key-highlights-of-the-clra-act\/#Applicability_of_the_CLRA_Act_1970\" >Applicability of the CLRA Act, 1970<\/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\/key-highlights-of-the-clra-act\/#Composition_of_the_Advisory_Boards_under_the_CLRA_Act\" >Composition of the Advisory Boards under the\nCLRA Act<\/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\/key-highlights-of-the-clra-act\/#Licensing_of_Contractors_under_CLRA_Act\" >Licensing of Contractors under CLRA Act<\/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\/key-highlights-of-the-clra-act\/#Welfare_and_Health_of_Contract_Worker_under_CLRA_Act\" >Welfare and Health of Contract Worker under CLRA\nAct<\/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\/key-highlights-of-the-clra-act\/#Recommendations_under_CLRA_Act\" >Recommendations under CLRA Act<\/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\/key-highlights-of-the-clra-act\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Purpose_of_the_CLRA_Act\"><\/span>The Purpose of the CLRA Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Following are the primary purpose of the CLRA Act are<\/strong>:<\/p>\n\n\n\n<ul><li>To stop the exploitation of contract workers\nrights.<\/li><li>To provide excellent and proper working\nconditions to the contract workers.<\/li><li>To control the functioning of the Advisory\nboards.<\/li><li>To state the essential requirements and the\nprocess of licensing contracts.<\/li><li>The Act set up the rules and regulations\nregarding the registration procedure for employing contract workers.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_the_CLRA_Act_1970\"><\/span>Applicability of the CLRA Act, 1970<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Section 1(4) defines the establishments where this Act will be\napplicable:<\/strong><\/p>\n\n\n\n<ul><li>If twenty or more workers are employed in any\nestablishment or were associated as contract workers on day during the\npreceding 12 months.<\/li><li>Any contractor employs \/employed twenty or more\nworkers as contract workers on any day of the preceding twelve months.<\/li><li>The Act applies to all establishments if workers\nare employed as contract workers. Section 2(b) of this Act states that a worker\nis deemed to be employed as a contract worker when they are hired in or in\nconnection with such work by a contractor without or with the knowledge of the\nprincipal employer.<\/li><li>&nbsp;This Act does\nnot apply to any establishment or organisation where any work of casual or\nintermittent nature is performed. <\/li><li>This Act does not apply to a person appointed in\na managerial and advisory capacity.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Composition_of_the_Advisory_Boards_under_the_CLRA_Act\"><\/span>Composition of the Advisory Boards under the\nCLRA Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The establishment and composition of the Central &amp; State Advisory Boards mention under Chapter 2 of <strong>the Contract Labour (Regulation &amp; Abolition) Act, 1970<\/strong><sup><a href=\"https:\/\/clc.gov.in\/clc\/acts-rules\/contract-labour-regulation-abolition-act-1970\"><strong>[1]<\/strong><\/a><\/sup>. The main functions of the boards are to advise the Central &amp; State governments on the issues regarding the administration of the CRLA Act and to carry out all the essential functions assigned under the CLRA Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Central Advisory Board<\/h3>\n\n\n\n<p><strong>The Central Board shall consist of:<\/strong><\/p>\n\n\n\n<ul><li>The Central Government appoint the Chairman of\nthe Board;<\/li><li>The Chief Labour Commissioner (Central), and<\/li><li>The Central Government shall nominate 11 to 17\nmembers to represent the government, coal industry, railways, mining industry,\ncontractors, workers and members from other areas that, in the opinion of the\nCentral Government, ought to represent on the Central Advisory Board.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">State Advisory Board<\/h3>\n\n\n\n<p><strong>The State Board shall consist of:<\/strong><\/p>\n\n\n\n<ul><li>The State Government appointed a chairman of the\nboard;<\/li><li>The Labour Commissioner of that State, and if he\nis absent, any other officer will be nominated by State Government.<\/li><li>In addition, the State Government may nominate 9\nto 11 members to represent that government, contractors, workers, industry, and\nmembers from other areas, which in the opinion of the State Government, should\nbe represented on the State Advisory Board.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Licensing_of_Contractors_under_CLRA_Act\"><\/span>Licensing of Contractors under CLRA Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In Chapter 4 of the CLRA Act,\n1970 mention the vital requirements &amp; the procedure of licensing\ncontractors. In chapter 4, we will study the required steps for grant,\nrevocation, suspension and amendment of License.<\/p>\n\n\n\n<ul><li><strong>Appointment of licensing officers<\/strong>: By an order in the Official Gazette, the appropriate government may appoint Gazetted Officer of the government as licensing officer &amp; state their functions &amp; powers under Section 11 of the CLRA act.<\/li><li><strong>Grant of the Licences<\/strong><\/li><\/ul>\n\n\n\n<ol><li>All the applications for the grant of a license under Section 12(1) shall be made in the prescribed form. They shall contain the particulars regarding the map location of the establishment, the nature of the operation, process, or work for which the contract worker is to be employed &amp; such other details as may be prescribed.<\/li><li>\u00a0The licensing officer may take the investigation in respect of the application received, and in bringing such investigation, the licensing officer shall follow the procedure as prescribed.<\/li><li>\u00a0A license grant under this chapter shall be valid for the time specified therein and may renew from time to time. <\/li><\/ol>\n\n\n\n<ul><li><strong>Grant, Revocation, Suspension and Amendment of Licenses: <\/strong>However, if it comes to the knowledge of the licensing officer that a license has been getting by misrepresentation and suppression of any material fact or the license holder has failed to fill the conditions subject to granting of the License or contravened any provision of this Act then the licensing may revoke, suspend or amend the License. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Welfare_and_Health_of_Contract_Worker_under_CLRA_Act\"><\/span>Welfare and Health of Contract Worker under CLRA\nAct<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per chapter 5 of the Act, the\nprincipal employer has to ensure that the contractor provides facilities\nadhering to the appropriate government&#8217;s rules. <\/p>\n\n\n\n<ul><li>If the contractor employs 100 or more workers by\ncontract worker, then one canteen shall be available on the worker premises and\nmaintained by the contractor for the use of such contract worker.<\/li><li>The contractor must provide and maintain a\nrestroom or other facilities that can be sufficiently clean, lighted,\nventilated and comfortable in the case of an establishment where contract\nworkers must halt at night.<\/li><li>The contractor is also responsible for providing\nother facilities like drinking water, bathroom (separate for men &amp; women),\nfirst aid, etc.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recommendations_under_CLRA_Act\"><\/span>Recommendations under CLRA Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This Act is an essential\nlegislature to protect the rights of workers appointed as contract workers by a\ncontractor.<\/p>\n\n\n\n<ul><li>The Act fails to state a difference between\nperipheral and core activities that have led to non-implementation.<\/li><li>&nbsp;The Act\napplies to every establishment employing 20 or more than 20 contract workers.\nThus it enables the contractor to avoid their liabilities regarding the welfare\nof the workers by employing less than 20 workers.<\/li><li>The penal provisions of the Act are not\ndeterrent enough, so it enables the principal employer to rather face\nprosecution instead of following the requirements of the Act.<\/li><li>Under the CLRA Act, the education scheme for\ncontract workers should be extended because most workers are illiterate, unskilled\nand ignorant of their rights.<\/li><li>There is no independent or direct provision\nunder this Act for filing claims or short or non-payments; illegal deduction in\npayment, etc.; these claims are filed under the <strong><em>Minimum Wages Act,1948<\/em><\/strong> or\n<strong><em>the\nPayment of Wages Act, 1936<\/em><\/strong> that create issues regarding the\napplicability of these Acts. Hence, it should include these provisions for the\nbetter functioning of the Act.<\/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>The CLRA Act, 1970 was enacted to prevent the exploitation of contract workers as no existing legislation deals with contract workers. In addition, the Authority must consider certain shortcomings of the Act, and essential changes should be made &amp; implemented. <\/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\/contract-labour-act-synopsis-of-key-provisions\/\">Contract Labour Act: A Synopsis of Key Provisions<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Contract Labour (Regulation &amp; Abolition) Act, 1970&#8242; also known as the &#8220;CLRA Act&#8221;, was established to control the employment of contract workers in certain establishments. The primary purpose of this Act is to prevent the exploitation of the contract workers rights and introduce better working conditions for them. A worker is deemed employed as [&hellip;]<\/p>\n","protected":false},"author":42,"featured_media":45137,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2386],"tags":[2482],"acf":{"service_id":"367"},"authorName":"Krishna Kumar","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/07\/MicrosoftTeams-image-62.jpg","authorDescription":"Krishna Kumar has completed BA-LLB with a specialization in constitutional Laws from ICFAI University. As a recent graduate, He has both legal research and content writing experience in various law firms. He secures good drafting skills for various legal documents in multiple fields of law.","postViews":8118,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45135"}],"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\/42"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=45135"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45135\/revisions"}],"predecessor-version":[{"id":45146,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45135\/revisions\/45146"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/45137"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=45135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=45135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=45135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}