(1) The appropriate Government may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
(a) the number of persons to be appointed as members representing various interests on the Central Board and the State Board, the term of their office and other conditions of service, the procedure to be followed in the discharge of their functions and the manner of filling vacancies;
(b) the times and places of the meetings of any committee constituted under this Act, the procedure to be followed at such meetings including the quorum necessary for the transaction of business, and the fees and allowances that may be paid to the members of a committee;
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(c) the manner in which establishments may be registered under section 7, the levy of a fee therefor and the form of certificate of registration;
(d) the form of application for the grant or renewal of a licence under section 13 and the particulars it may contain;
(e) the manner in which an investigation is to be made in respect of an application for the grant of a licence and the matters to be taken into account in granting or refusing a licence;
(f) the form of a licence which may be granted or renewed under section 12 and the conditions subject to which the licence may be granted or renewed, the fees to be levied for the grant or renewal of a licence and the deposit of any sum as security for the performance of such conditions;
(g) the circumstances under which licences may be varied or amended under section 14;
(h) the form and manner in which appeals may be filed under section 15 and the procedure to be followed by appellate officers in disposing of the appeals;
(i) the time within which facilities required by this Act to be provided and maintained may be so provided by the contractor and in case of default on the part of the contractor, by the principal employer;
(j) the number and types of canteens, rest-rooms, latrines and urinals that should be provided and maintained;
(k) the type of equipment that should be provided in the first-aid boxes;
(l) the period within which wages payable to contract labour should be paid by the contractor under sub-section (1) of section 21;
(m) the form of registers and records to be maintained by principal employers and contractors;
(n) the submission of returns, forms in which, and the authorities to which, such returns may be submitted;
(o) the collection of any information or statistics in relation to contract labour; and
(p) any other matter which has to be, or may be, prescribed under this Act.
(3) Every rule made by the Central Government under this Act shall be laid as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
1 [(4) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before the State Legislature.]
1. Ins. by Act 4 of 2005, s. 2 and the Schedule (w.e.f. 11-1-2005).
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SECRET (y'L ___ / j )( 11 S()- )/ · N S 16011/1/2010 LW .- ·. -. ··" V \f'J"\ o, • · _ _ _ ~ "f • / \ \I Government of India - ·. " , . 1 5 :" · ;,J( ~ ?v0 Ministry of Labour&_ Employment .,._, - ~ To All Labour Secretaries, State Governments/UTs Ja1salmer House, IVlansingh Roa,~, New Delhi, the 22nd March, 2010.
Subject Draft Note for Cabinet regarding amendment to the Contract Labour (Regulation and Abolition) Act, 1970.
Sir, I am directed to forward herewith a Draft Note for the Cabinet to amend the Contract Labour (Regulation & Abolition) Act, 1970.
11 !i l ' ··:-;-:_·;----2-, 1 It is requested that the comments/views on the above ;; i , / m~ntioned DRAFT CABINET NOTE may kindly be furnished to this I I 1 ~f ~ /~inistry latest by 12 th April, 2010.
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. 'v: .. ' . .:'..=_: I ;(~ :o: I ; ; · ,.-3,. This has approval of the Union Minister of Labour & I I I I ' ' I i r .
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Encl: As above.
Yours faithfully Director T 1~leFax : 23389081 I Scanned by CamScanner ' I / I I I J I • r ., ~ SECRET F. No. S-16011 /1/2010-LW Government of lndia Ministry of Labour 8:.. Employment Shram Shalcti Bhavan, Nev: Delhi, DK.Ari NOTE FOR THE CABINET Copy l\o £ 2-- dated the .. ~~ .. i.?.h .. ).1- o l 1) Subject: Note for the Ca binet regarding amendment to the Contract Labour (Regulation and Abolition) Act, 1970.
I. BACKGROU1\1D
1.1 \Vith a view to preventing exploitation of contract labour which predominantly belong to vulnerable sections of the society, the Contract Labour (Regulation & Abolition) Act, 1970 was enacted. The Act aimed at the abolition of contract labour in respect of such categories as may be notified by the appropriate Government in the light of certain criteria laid down under Section 10 of the said Act, and at regulating the service conditions of contract labour where abolition is not possible. It also provides for setting up of Advisory Boards of tripartite character, representing various interests, to advise the Central and . State Governments in administering the Act and registration of establishments and contractors. It further provides for provisions and maintenance of certain basic welfare amenities for contract labour, like drinking water, first -aid - facilities, rest-rooms, canteens etc. Provisions are also there to guard against defaults in the matter of wage payment.
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1.3 .c ·brr)· years. Hm;vever, . . .· -~ence ior Ll • " ~ has been in e,>.J::,L . b Tl• e ~rorementioned ,'--\v t • . . nment there 11as een a J. 1 a1 ·c envuo , . Jobal econom1 . d d h with the changing g , ocial security prov1 e to t e ti . 1unerat1ons and s tendency to squeeze 1e ien . . r' rofit margins . There is ample ·t1 view to unpro, mg p .
contract labom wi 1 a . . f contract workers has . . d' te that the explo1tat10n o evidence available tom ica . situations where , . ·t lf Thus there are increased as has contractualisat10n 1 se . . ' d . ffi ential in the . . . k there is a vast 1 er despite perforrnmg s1m1lar tas s h . workers as compared to t ose remunerations b~ing provided to contract that are on regular roll.
· · · th rovisions of the Accordingly, there has been a demand to rev1s1t e P Contract Labour (Regulation & Abolition) Act, 1970 and make it more effective and practicable in the context of the changed _global econorruc and working environment with a view to safeguarding the interest of both the Contract Labour and Employers. This would also be in tune with the objective of fostering inclusive grmvth in the country wherein all segments, especially the vulnerable sections, can participate .
and benefit .from the growth in the economy. The issues relating to contract labour have been discussed in various fora and with all the stake holders. Finally, it came up for consideration before the State Labour Ministers Conference held on the 22 nd January 2010 . The Conference agreed unanimously to amend the Act and incorporate the followino b provision as a new section in the main body of the Act to make it 1nore effective and visjble. (The provision presently exist~ at Rule 25(2)(v)(a)).
Once the Act is amended as proposed, this Rule will be deleted) :
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-: · · s,' T i\' ( _- · '>1m ·a , i labour sh.all be the same as arc available to the H \ ,, ·,'-,, \ _' ;. l )},' rht ,. ,!is 0.7 the Principal Employer. In case, the same or si .. ·;'1;11' khd .( )IIOrk is' nor being pe,:f'ormed by the war/cm.en directiy · , .·: 1 y c.::.ti l1.v the Princ1fJO I E111ployer, the Appropriate Government will i,)~ t , · .'.· , l · )I' · r.! C raws. holidays, hours of vvork , social securitJ: and other ,, . .. .. .
~: m ,·1. 1 ns J service.
Th~ .. l a L Labow· l\1inisters ' Conference also recommended the following a.mt: nd1nent t.o the Act and incorporate a new Section so as to ensure ,,·agt:s and contribution towards social security to be paid bY the .onu·actor are clearly specified in the contract agreement between the Principal e1nployer and the contractor:
\ 1 hen.ever a contract is given to a contractor, the contract agreement ben1 een the Principal Employer and the contractor should clearly indicate the wages and contribution towards social security schemes and orher ben~fits that are to be paid by the contrac_tor to the controcted 11 orbnan ··
1.5 It v.ras also considered necessary to carry-out an amendment in the Contract Labour (Regulation & Abolition) Act, 1970 so as to redefine the ' appropriate Government' under Section 2 (1) (a) of the Act. rbis is basically to clarify the jurisdiction of the Central Government in ter1115 of Central Public Sector Undertaking as well as the Central Govenunent 1'v1inistries, Departments and their establishments. The existing provision does not clearly indicate the jurisdiction of the Central Government over these institutions.
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.~ z_G v "") APPROVAL SOUGHT . • !icited to amend the Contract Labour Approval of the Cabmet 15 so . 1970 as detailed below:
(Regulation and Abolition) Act, , . Pro•--osed Amendment \ LI S~lJ.N~o~.jJS~e~c:!iti~onQ._ _ _iE~x~'i~st~i1~1g~Pr:r~o~v~is~10~n~s-~~:.::·~l-':::_::._::__:_:::=-.:--------- 7 Section 2 _ (I) In this Act, unless (I J In this Act, unless the context \ Definitions- the context otherwise otherwise requires, - \ 1.
2.
requires,- . ( ) "appropriate Government"
(a) "appropriate a Government" means,:- means-
(i) m relation to an (i) in relation to an establishment • establisrunent in respect of the Central Government of · which the Ministries . and Departments appropriate including the Central Public Sector Government under the Undertakings and other institutions Industrial Disputes & organizations under them and Act,1947 (14 of 1947), the establishment m respect of 1s the Central which the appropriate Government Government, the under the Industrial Disputes Act.
Central Government; 194 7 (14 of 194 7), is the Central Government, the Central Chapter V WELF A.RE HEALTH CONTRACT LABOUR Government.
AND WAGES, OF HEALTH LABOUR.
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· Section 16A. j I I ! Heading of Responsibility ! Section 21 payment of wages.
; Addition of I a new i : Section 21 A. ' - --------- ----- Pro pus, --~ .. :me11Jmc1~i 16-A.. J+ agt!s: In (,,r. Lse wn<lre the · L·ontracr !obour pe1~rnrm !h i:! wme or simi!ur kind rJ/ w0rlc r:1.1· rhe :
workmen direcrly appointed by the Prinr..:1jxll Employer. the ·,vage rates, hoiidays . hours of work , .wcial security provisions and 1 other condition of service of' contract labour shalf he the same i as are available to the direcrly _\ appointed workmen on the rolls of 1 the Principal . Employer. In case the same or similar kind of work is not being performed by the workmen directly employed by the I Principal Employer, the \ Appropriate Government will notify 1 the wage rates, holidays, hours of work, social security provisions and other conditions of service.
Provided rhat m case OJ anv !
disagreement with regard to tl;e !
type of work, the same shall he :
. decided by the officer notified for !
i t~is purpose by _the "appropriate \ ' vovernment. ;
for : Responsibility for payment of I c I wages and contribution towards :
social security. I !
! ]1-.~ Wages and contribution ;
' towards social security - Whenever :
: a contract worker is enaaoed : 0 C · ,:hrough a con1:,actor, :he ,_'onrract :-1.greemenr 'Jerween rhe ?rincipai 5:mpioyer u.nd £he -::onrracor .,hail _· la,~rlv ,:ndicari che wages "ma .;r,mrib1rion :()wards ;ociai :i·ecurirv :.:..·hi:::mes "ma ,Jrher ji:::1:.e;irs ,har .1re ·o Je ,-:;aia .Jv ,-he :::omrc;cwr :o :he _,_-.,: n::r~:c :e~: · .. v,JrK.mc:.n .
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3. EQUITY PUBLI ACCOUNTABILITY AND INNOVATION A tat \rn nt of Equity, Pul>II A l.Ountability and Innovation is ttJch d t App ndix- L
4. IMI LEIVIENTATION CHEDULE 1-\ tilt' tr1 nt of lmpl m ntatlon chedul in respect of the 'bov propo :111 Iv n in Appendix-II to th Not Th prop Mlni ·t r. .
1 h s th , pprovril of l., bour & Employm nt F.No. -16011/1/?010-LW (Anil Sw rup) Joint S r tnry to th G vt. of India T ~1 N . s.'.) i / t\ \ ,,/ ..
Sc an ne d by C am Sc an ne r.,.;.., ..... .....,,~·~~ ... ~--.-_j ·- _. __ ,- ,_,·· .-.·: ·, \ . .~~~.._,,~ ..... 1~--..... -~ ... ·---~- -···'• "'--'' . J,,';'T.;;:':-., •• _, __ _ . • A.PPENDIX-l SECRET FILE l'JO.S~!.b'?.U./ 1 / /o-l-W REFERENCE PARA 7 OF THE NOTE Statement on Equity. Public Account<.1bility and Innovation -·---- --~----- __ _:_:_~-- --- -------- - -·--- -~: No -----j-Equ::eo~ei~~:~:1v!~:~s How does the prop_(:_)sal adv_~_nce this -~o~l? -----------·····-· ___ _ ____ ___ _ The proposed amendment will encompass the contract labour throughout the Country. This will ameliorate the conditions of the poor working class who 2. r~ presently exploited and deprived of the appropriate wages, service conditions, sor.ic'll security, welfare & health benefits etc. This will also go a long way in obviating the possibility of exploitation of the contract workers . by the employers or the contractors.
2. Public Accountability The proposed amendments will b_e implemented and monitored by the Centrol Government or the State Government, as the case mav be, and the report of th~ implementation will be reflected in the Annual Report of the Ministry of Labour and Employment. The Annual Report will be laid is both the Houses of the Porlic1111ent.
Thus, the proposed amendments and the implementation thereof will be ultirnately in the public domain.
3. Innovations - -----·'- •··•·.
The coverage of the p_rop~sed amendmen~s is quite vast as it will benefit lrics of thP 1· contract workers. This will be an effective measure to r~tionalise the w;:igrs of contract workers, ensure better service conditions, provide socic1I security ;rnd gua ran!_~E_: -~9~-~Jity_with _the _r._egular workers _of an establ!sh_ment.
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• • THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 AMMENDMENT