2. Essential Labour Legislation
Background
Industrial Revolution & change in society – Labour Laws came to
abhor vacuum
L Ls are different from general laws
Treats individual as workers
Seeks to deal with problems arising out of occupational status
It spills beyond contractual obligation
No jurisdictions of civil laws
The principles behind labour laws
Principle of protection
Principle of social justice
Principle of regulation
Principle of welfare
Principle of social justice
Principle of international obligations
3. Based on above principles – Labour legislation can be
classified as follows
Regulative
Protective
Wage related
Social security
Welfare
Regulative legislations
Trade union Act, 1926
ID Act, 1947
Industrial Employment (S.O.) Act, 1946
Laws/ Rule relating to the industrial discipline
Principles of Natural justice
Unionism vs. TUs.
Managerial Association
4. Industrial Relations – relationships cannot be
regulated through laws
However incases of differences /disputes IDA comes into
operation collective disputes/industrial disputes – C B –
Settlement
Individual Dispute/ difference
In case of employee grievance redressal
In case of employers – disciplinary action
Service Rule
Standing Orders
Article 311
Based on principles of natural justice (Domestic Enquiry)
In case of dismissal
2 A
11 A
33
5. Protective Labour Legislations
F. A. 1948
Shops & Commercial Establishment Laws
Sexual Harassment Judgements
Vishakha vs. State of Rajasthan
6. SC Rejects Som Mittal’s Appeal Against K’tata Govt. (21st
Feb.2008)
NASSCOM president and former Hewlett Packard
GlobalSoft managing director Som Mittal will face
prosecution for not providing adequate security to a
woman employee who was raped and murdered by the
driver of the company vehicle on her way to work in 2005.
HP Global employee Pratibha Srikant Murthy was raped
and murdered on December 13, 2005 on her way to work
from her residence in Bangalore.
The state government’s labour department filed the case
alleging the company violated the Karnataka Shops &
Commercial Establishments Act, 1961, in relation to
providing transport and security for women who worked
at night. While the Bangalore police investigated the
murder case, the Labour department launched a separate
case against Mr. Mittal alleging failure of the company to
comply with the law.
7. The Shops and Establishments Act does not allow
women to be employed on night shift. However, call
centers, which employ a large workforce including
women were exempt form the Act subject to the
condition that they ensured transport and security to
women employees between their homes and work
place.
8. Managing contact labour
Organizational strategy under fierce competitive
pressure
Competing with international players at any cost
Changing paradigms under competitive
environment
Self reliance to outsourcing, networking,
contracting
9. Core and non-core activities – Working of IT ITes
and other services
Smart working, slimmer organization - Tom
Peter’s prophecies - survival needs
Reduced business fluctuations, shorter life span
of products and services
Rising expectations and aspirations of consumers,
innovations by competitors
Limitations of in-house expertise leading to
outsourcing and contracting
10. Business in future will grow in area of
outsourcing, increased casualization of work
Outsourcing and contracting – a business
need/reality
Universally practiced
In India, government departments (even Home
Ministry), Fifth Pay Commissions’
recommendations
PSUs, private sector, MNCs ITes’s etc.
11. About 20000 registered labour contractors and
about 10 million contract labour –in NCR it is
estimated that approximately 18 to 20 lakhs
people are employed as chowkidars/watchmen,
and in most cases they work than 48 hours a
week, 12 hours a day
Organizations cannot do without contract labour
– they have become indispensable
Traditionally, contract labour were engaged in –
construction, extension, expansion, projects,
transportation, loading/unloading, maintenance,
operations, watch & ward, gardening, house
keeping, catering, sweeping, cleaning & dusting,
conservancy services, hospitals, schooling ITES
etc.
12. New areas of outsourcing where risk was low in business
Engineering consultancy
Legal service
Share transfer
logistics
Servicing customer complaints
Data entry and verification
IT maintenance
Taxation consultation
Pick and drop services
Security
Catering
Packaging
Bill services
Pay rolls
Recruitment and short listing
Training
Compensation
Surveys
Franchise selling/ commission sales
13. Outsourcing and contracting differ
Engagement of contact labour implies outsourcing. However all
outsourcing does not mean engagement of contract labour.
Outsourcing refers to a contractual relationship for the provision of
business services by an external provider. In other words, a company
pays another company to do some work for it. Currently, outsourcing
is being promoted as one of the most powerful trends reshaping
management. However, organizations have always outsourced some
functions. For decades, most organizations hired firms to operate
their cleaning or restaurant functions. What is different now is the
scale. Firms are outsourcing everything from information technology
management to entire functions such as human resources.
14. Why contract labour?
Strategic decision to reduce risk.
Arising from business fluctuations
Reduction in cost – fixed as well as recurring
Reduction and control of operating cost
Increased flexibility
Free internal resources for core activities
Existing resources not capable of doing the job
Unfavorable behavior and conduct of existing
employees
15. Inability / reluctance of existing work force to acquire
new skill/learn new technology
Cheaper labour
Speedier & quality services
Low output norm/restrictive work practices by
existing employees
Easy to manage –discipline transfer, terminate, legal
liabilities.
16. Need for law/judicial interventionRaw deal by every one – exploitation.
Wages, welfare, social security, security net, risk coverage.
All dirty, dangerous, hazardous job.
Most contracts –sham ones.
Royal commission on labour 1930.
Vacuum standard case: supreme court 1960 – “ primitive &
savage”.
National labour commission-1969.
Contract labour regulation and abolition act 1970.
Regulation
Abolition.
17. Understanding Some
Definitions
Principal Employer – any person responsible for
supervision and control of establishment
Contractor – in relation to an establishment, means
a person who undertakes to produce a given result for
the establishment, other than a mere supply of good
or articles of malabour or who suuplies
18. Contract Labour – an employee who is placed at
different establishments and hired in or in connection
with the work of any particular establishment is
excluded from meaning of contract labour
Establishment – each location is a different
establishment
Contractor to be covered under the Act must engage
20 or more workmen
19. RegulationRegistration by PE – us 7 & 8 – an establishment
cannot employ Contract Labour. Failure offset sec 23.
License by contractor – us 12 – no contractor can
engage CL without license – failure attracts sec 25
20. Certificate of registration by principal employer
Not renewable on year to year basis.
On payment of fees only.
An application of registration should be accompanied
by a bank draft.
No conditions are attached as a part of the certificate.
Certificate of registration need not be displayed at the
establishment by P.E.
21. License by contractor
Valid only for one year and is to be renewed
before its date of validation.
On payment of fees plus security money.
Should be accompanied by bank draft plus
certificate from the P.E.
There is a full annexure containing conditions for
fulfillment by contractor.
Should be displayed prominently at the premises
where the contract work is being carried on.
Welfare and health – us 16 – 20. In absence,
responsibility of PE / Penalties
22. Responsibility for payment of wages – us 21
1. Contractor responsible for payment of wages before the
expiry of payment date
2. Principal employer to nominate a representative duly
authorized to be present at the time of disbursement of
wages who will certify the amount paid
3. In case the contractor fails to make payment then the
principal employer shall be liable to make payment in full
or the unpaid balance due and recover the amount so paid
from the contractor under any contract or as debt payable
by the contractor.
23. Offences and penalties
Offences
Obstructing an inspector while making
inspection, inquiry or investigation, or failure to
produce registers or documents before an
inspector for inspection.
Employing contract labour in contravention of
the provisions of the act or violating any condition
of the registration certificate or licence
Contravention of any other provision of the act or
the rules made thereunder.
24. Imprisonment up to three months, or fine up to Rs.
500 or both.
Imprisonment up to 3 months, or fine upto Rs. 1000/-
or both. In case of a continuing offence additional fine
up to Rs. 100/- per day.
Imprison up to 3 months, or fine upto Rs. 1000/- or
both.
25. Abolition – Section 10
Appropriate Government after consultation with
Central/State Advisory Board may prohibit by
notification in the Official Gazette, employment
of Contract Labour in any process, operation or
other work in any establishment
26. Relevant Factors
Incidental to or necessary for
Perennial in nature
Ordinarily done by regular workmen
Possibility of employment of full time workmen
In other words, any work involving process or operation or
which is incidental to or necessary for the industry, trade,
business, manufacturing or occupation or is having a close
kinship with such process/operation provided it is perennial
in nature
In cases of abolition, contract labours are on the road – there
is no provision for absorption
27. Leading Cases
Mathura Refinery Majdoor Sangh vs. IOC 1991, SC –
No relationship of employer – employee between IOC
and contract labour concerned.
Master servant relationship
Supreme court judgment
Dharanadhra chemical Works Ltd. vs.
State of Saurashtra – AIR 1957 SC 264
Four Member Beach of supreme Court, Bhagwati J.
28. “ …. The prima facie test for the determination of the
relationship between master and servant is the
existence of the right in the master to supervise and
control the work done by the servant not only in the
matter of directing what work the servant is to do but
also the manner in which he shall do his work”
29. Air India case 1996 – It was held that subsequent
to the abolition of contract labour, the employees
of contractor would automatically become
employees of principal employer
HSEB case 1999 – Sham contract, contractor a
mere broker, a commission agent – relation of PE
and CL is quite apparent
30. SAIL case 2002 – salient features of the judgment
No automatic absorption of CL on its
provision/absorption – Principle of Ironing the Crease
Appropriate Government – determination and
identification – for CPU 2(a) of IDA
Notification 1976 was removed
CL workers to be absorbed when principal employer has
engaged them to discharge statutory duty like canteen
in the factory/establishment
When contract is held as sham/camouflage – the
contract workers will be automatically absorbed
Contract workers already absorbed not to be affected by
this judgment
31. Misconceptions arising out of SAIL JudgmentLaw on contract labour has not changed
Tests for prohibition of contract labour has not changed
Changes in interpretation
Appropriate Government
Non-acceptance of Omnibus Notification
Liability for absorption does not exist-however need
to give preference
No master servant relationship between employees of
contractor and principal employer
Regularization in case of “ Sham Contracts”
Industrial courts to go into issue of “ Sham Contracts”
32. Amendment in AP in sec 10 on June 19,
2003
Not withstanding anything contained in the Act,
employment of contract labour in core activities of any
establishment is prohibited
However the principal employer may engage contract
labour or contractor to any activity if.
The normal functioning of the establishment is such that
the activity is ordinarily done through the contractor.
The activities are such that they do not require full time
worker for the major portion of working hours in a day or
for longer periods as the case may be
Any sudden increase of volume of work in core activity
which need to be accomplished in a specified time.
33. Core Activity
The Andhra Pradesh Contract Labour (Regulation
& Abolition) Act, 1970 vide Act 10 of 2003
inserted/added the following provisions in the
Act.
Sec 2 (dd) defines ‘core activity’ of an
establishment to mean:
Any activity for which the establishment is set up. It
includes:
Any activity which is essential or necessary to the core
activity.
34. It does not include:
Sanitation works
Watch and ward services
Canteen & catering
Loading and unloading
Running of
Hospital
Educational institution
Training institution
clubs
35. Courier services
Civil and other construction and maintenance work
Gardening and maintenance of lawn
House keeping and laundry services
Transport services
Any activity of intermittent nature
Any activity which is essential to the core activity.
36. Contract Labour
(Regulation of employment and conditions of Service)
Bill, 2003- proposal
1. Any company engaged in time bound projects assigned
to it would be eligible to have people on contract basis.
2. Software industries particularly those executing
overseas projects will be entitled to engage contract
workers.
3. Conditions of employment of contract labour in 100%
export oriented unit be relaxed.
4. Conditions to allow companies to employ contract
labour be relaxed for running:
a. Hospitals
b. Education and training institutions
c. Guests Houses
d. Clubs
37. 5. Operation transport services including ambulance services
6. Courier Services
7. Construction and maintenance of road building and
bridge service
8. Running Canteen
9. a. Loading and unloading of raw materials, finished
production or any other material,
b. Security services
c. Gardening
d. Maintenance of lawns
e. Maintenance of repair of equipment, machines and plants
10. Sweeping
Cleaning
Dusting
Collection of dusts etc.
38. An illustrative list of activity areas which may never
attract a ban under the law (sec. 10 of Clara act)
Guest houses
Canteens
Officers’ Bungalows
Horticulture
Training Institute
Security Duties
Hospitals
Dispensaries
Annual Maintenance
All Construction Activities
Buses, cars and Ambulances provided
Repair, Maintenance, servicing and overhauling of
production machines, cranes, tools, instrumentation,
computers provided they are one time jobs and not on
going maintenance contracts.
39. On regular process or operation provided additional
labour is for seasonal, intermittent, casual or erratic jobs
like weekly or periodic cleaning, oiling, washing or dusting
of production equipment.
Maintenance of roads, paths and gangways.
Cleaning of choked drains and sewerage systems.
Cutting of seasonal grass.
Loading and unloading material or scrap.
Typing of bulk documents as one time job.
All work which is performed by labour at premises outside
your establishment by “Out- workers”
40. Sham Contract
Circumstances under which an agreement is termed as
sham contract
When agreement does not disclose the name of the
contractor.
When the agreement does not disclose the exact nature of
jobs to be done by contract labour.
When the agreement narrates the nature of jobs other
than actually performed by CL.
When the agreement is against the law of the land & also
against the judicial pronouncements.
When the agreement is used as a tool or a device to
deprive the contract labour –the right of their livelihood
or for their victimization or as unifair-labor –practice.
Therefore, employers should ensure the following-
The contract is genuine and on non-judicial stamp paper,
must disclose the name & address of the contractor, must
specify –place & time of work, rate of
41. Compensation etc., must carry out all statutory
provisions and judicial pronouncements etc.
The contract should not be a cloak for suppressing
the facts.
The contractors should not be a fake and merely a
commission agent & name lender.
42. Precautions
(Points to be observed in respect of contract labour
matter)
1. Don’t give/issue any instruction to contract labour and
ensure supervisors of the contractors are available at
site to supervise work as per Nit/Work order clause.
2. Employ contract labour on work that is different from
that of direct workers.
3. Don’t employ contract labour on regular job against
guiding principles where employment of contract
labour can be prohibited.
4. Ensure that wages are paid to contract labour and
always witness monthly wage payment of contract
labours on payment day.
5. Ask copy of contractors monthly wage bill duly
witnessed to deal with complaints of non-payment.
6. Ensure that when contract terminated/expires contract
labour get their dues before releasing/forwarding final
43. Security deposit for payment.
When contractor deposit provident fund ESI obtain from
him a copy of challan supported by list of contract labour
and a statement to this effect that he has deposited the
payment of labour under referred work order.
Not to allow contractors to engage sub-contractors and
obtain indemnity bond from contractor to take the
liability of sub-contractors for compliance.
Ensure that the contractor/ sub-contractor has obtained
labour licence if he engages 20 or more contract labor.
Identify the jobs on which contract labour is to be
engaged and for only limited purpose.
Explore possibility that contractor engages only own
regular workforce working under him with minimum
number of contract labour.
Never sign any overtime slip gate pass/photo pass of
contract labour directly and issue any service certificate
44. Certificate to contract labour.
Engage contractor having ESI and EPF number so that
they are independent employer establishment.
Ensure contractor gets his labour insured through
RCF/Directly.
Ensure that the contractor should not employ contract
labour regularly for over 240 days/ continuously inside the
factory ensure he puts condition of termination without
notice and engages contract labour for specific period.
Ensure contractor observes working hours rest intervals,
spread-overs O.T. Payments. Weekly rests, national and
festival holidays as per the factories Act/ Shops and
establishment act as applicable.
Factories Act does not recognize a contractor for
prosecution. It recognizes only occupier and prosecution.
It recognizes only occupier and member of the factory.
45. Hence, built records about your diligence on safety
instructions, safety shoes etc. education contractor on
safely aspects and relevant provision of law.
Ensure welfare and health facility as provided in contract
act is extended to contract labour viz. first aid facility rest
room, canteen etc.
Take complete transformation from contractors after
award of contract on ESI & PF Code No. Insurance cover,
wage period, weekly holiday payment date and send to
personnel dept.
Keep an eye on contractor’s recruitment /engagement of
labour of medically fit literate and young labour (above 18
years age) fulfilling your job requirements in the factory.
Try an attempt to mechanize jobs to reduce dependence
on contract labour avoid employment of contractor
labour as easy way out.
Please ensure that tender notice/document must
46. Informed about liabilities of contractors before
they quote don’t spring surprises.
Don’t issue character certificate/service
certificates/overtime slips to contract labours.
Enquire name of inspector having jurisdiction
from personnel department and obtain minimum
wage rate.
Allow to employ maximum no. of contract labour
to see the work done within a short duration
instead of annual work in order to prove that the
work is intermittent nature/not regular.
Wherever you use the work contract labour never
mention regular a worker or employee on regular
job.
47. Assess the situation of engagement of contract labour
at regular intervals helping in mind the reduction of
contract labour wherever possible and further
recruitment to utilize elsewhere properly.
48. Essential ingredients of an agreement between
Principal Employer and the Contractor.
1. That the agreement should be drafted and executed on non-
judicial stamp paper.
2. That the agreement must disclose the names, addresses of the
contractor and the Principal Employer.
3. That the agreement must contain the rights and obligations of
both the parties.
4. That the agreement disclose the place of work time of working,
rate of compensation and consequences arising out of breach of
contract and procedure for termination by either of the parties to
the agreement.
5. That the agreement must carry out the objectives of statutory
provisions and judicial pronouncements.
6. That the agreement must disclose the scope of work deployment of
manpower in number, period of validity,
49. Compensation security deposit and terms of payment
of bills.
7. That the agreement should be between the
Contractor and the Principal employer and should be
witnessed by two witnesses.
50. Contract Labour-Check List
While engaging Contract Labour through Contractor following
suggestions are given:
1. The establishment in the first instance must ensure that they
have got a Registration Certificate from the Competent
Authority as provided under section 7 of the Contract Labour
(regulation and abolition ) Act, 1970 before proceeding to
engage the Contract Labour.
2. The Establishment must ensure that they issue certificate in
Form V to the Contractor for obtaining license as provided
under Section 12 of the Act.
3. It must be ensured that the contractor who is employing
more than 20 persons has a valid License issued in his name
by the Competent Authority as provided under the Act.
4. The payment of wages to the employees employed by the
Contractor is disbursed to his employees by the Contractor
himself or his nominees and the Principal Employer has to
depute his representatives to be present and sign the
Payment Register in token of having disbursed the salary in
his presence by the Contractor.
51. 5. There should not be any supervision and control
by the Principle Employer in respect of
employees employed by the Contractor to fulfill
the obligation of the contract.
6. The work for which Contractor Labour is engaged
is not of perennial nature.
7. Discipline of the employees of the Contractor in
the discharge of duties must be regulated by the
Contractor and not by the Principle Employer.
8. Contract should not specify the number of
persons required but must quantify the work
itself.
9. Leave to the employees of Contractor must be
sanctioned by the Contractor and not by the
Principal Employer.
52. 10. No advance should be paid by the Principal Employer to
the Contractor’s employees directly. Only contractor
must regulate the same.
11. Maintenance of all types of record in respect of the
employees employed by the Contractor should be his
own responsibility and Principle Employer should not
intervene in such matters.
12. Dictum of Supreme Court Judgment in Hussainbhai’s
case must be adhered to in drafting the agreement for
the contract.
13. If the establishment is covered by the Employees’
Provident Funds and Miscellaneous Provisions Act and
the Employees State Insurance Act then the preference
should be given to those contractors who have their own
code numbers under these acts.
14. To ensure compliance of the obligation pertaining to the
various provisions regarding amenities and benefits as
prescribed under the Act.
53. 15. To ensure to submit annual return to the prescribed
authority in the prescribed From under the Act.
An agreement between the Contractor and the Principal
Employer is said to be in a sham Contract under the
following circumstances:
1. When the agreement does not disclose name and
address of the Contractor.
2. When the agreement does not disclose the exact nature
of the job to be assigned.
3. When the agreement narrates the nature of job other
than actually to be performed.
4. When the agreement is against the norms of judicial
pronouncement / Statutory provisions.
5. When the agreement is a tool or device to deprive the
right of livelihood or as a toll for victimization or unfair
labour practice.
54. Contract labour and Applicability of
Other Laws
The Employees’ Provident Fund and
Miscellaneous Provisions Act,1952
DCM ltd vs. Regional Provident Fund –
Employees engaged through
contractor will be liable to covered
under the EPF Act
55. The Employees’ State Insurance Act,1948
Contract labour will be covered as long as they
meet the requirements of expression
‘employee’ as defined in section 2(9) of the Act
.Section 2(9) defines ‘employee’ as:-
Any person employed for wages in or in
connection with the work of a factory or
establishment to which this Act applies and -
56. i. Who is directly employed by the principal employer on any
work incidental or preliminary to or connected to the work, of
factory or establishment, whether such work is done by the
employee in the factory or establishment or elsewhere; or
ii. Who is employed by or through an immediate employer on
the premises of the factory or establishment or under the
supervision of principal employer or his agent on work which
is ordinarily part of the work of the factory of establishment or
which is preliminary to t work carried on in or incidental to
the purpose of the factory or establishment; or
iii. Whose services are temporarily lent or let on hire to the
principal employer by the person with whom the person whose
services are so lent or let on hire has entered into a contract of
service and includes any person employed for wages on any
work connected with the administration of the factory or
establishment or any part, department or branch thereof of
which the purchase of raw materials for, or the distribution or
sale of products of, the factory
57. The Industrial Disputes Act, 1947
Contract labour is workman under the ID Act. The
contractor would be the employer of such person. The
principal employer under the Act would be employer
under the ID Act in certain circumstances, against
whom an ‘industrial dispute’ cold be raised - Hassan
Bhai vs. Alath Factory Thezbiulati Union, 1978
58. The Mines Act, 1952
As per section 2(1) of the Act, any contractor
working in a mine or part thereof shall also be
liable for compliance of various provisions of the
Act and Rules.
The Minimum Wages Act, 1948
Sub-rule IV of the Contract Labour (Regulation
and Abolition) Act provides that the principal
employer will ensure that the workers as engaged
through the contractor will not be paid wages less
than the minimum rate of wages as fixed under
the Minimum Wages Act
59. Payment of Bonus Act, 1965
Neither the Contract Labour nor the Payment of
Bonus Act provide that the said act will be applicable.
Bonus will not be paid by the principal employer as it
does not come within the purview of wages
60. Payment of Gratuity Act, 1972
The employees engaged through the contractor
will not be entitled for paying Gratuity to the
contract labours
The Workmen’s Compensation Act, 1923
Section 12 of the Act provides for the payment to a
contract labour for personal injury arising out of
the course of employment
Principal employer cannot escape from his
liability to pay compensation to the employees of
the contractor and in turn, the principal employer
can recover the amount paid from the contractor
– as held by the Bombay Court – Suljeras Unkar
Jadhaw vs. Gurinder Singh (1991)
61. The Factories Act, 1948
Section 2(1) of the act as amended w.e.f 20.10.1976 defines a
‘worker’ as:
“worker” means a person employed directly or by or through
any agency (including a contractor) with or without the
knowledge of the principal employer, whether for
remuneration in any manufacturing process, or in any kind
of work incidentally to, r connected with the manufacturing
process but does not include any member of the armed
forces
A perusal of the definition indicates that the Factories Act
does not make any discrimination between the person
employed directly by the principal employer and a person
who is employed by or through a contractor in case all other
conditions as given in the definition are fulfilled. Therefore,
such contract labour will be entitled to all privileges and
benefits available to the workers under the Act including
those relating to weekly holidays, compensatory holidays,
overtime wages, etc.
62. Form II : Certificate of Registration
The certificate of registration granted under the section 7 (2)
shall be informed to the principal employer by the
authorities as per rule – 18(1) in the prescribed format
Forms IV & V - Application for license
As per rule-21(1), every application by a contractor for the
grant of license shall be made in triplicate in form-IV to the
licensing officer of the area, in which the establishment in
relation to which the contractor is located. The application is
to be accompanied by a certificate by the principal employer
in form-V to the effect that the applicant has been employed
by him as a contractor in relation to his establishment and
that he undertakes to be bound by all provisions of the act
and the rules made therein, insofar as the provisions are
applicable to him as the Principal employer in respect of the
contract labour by the applicant.
63. Forms & Returns required under the
statute
Form – I : Application for registration of
establishments employing Contract labour:
As per rule – 17, the Application for registration of the
establishment under the Act needs to be made in triplicate
in Form – I, duly submitted to the Registering Officer of
the area, in which the establishment is sought to be
registered and is located. The application is to be
accompanied by the Demand Draft, showing payment of
fees for the Registration by the Establishment. Further the
application referred to shall be either personally delivered
to the Registered Post. The application can only be
rejected if the application is not complete in all respects
64. Every such application shall be either personally delivered to
the licensing officer or sent to him by the registered post. On
receipt of the application referred to, the licensing officer
shall after noting thereon the date of receipt of the
application, grant an acknowledgement to the applicant.
Every application shall also be accompanied by a demand
draft showing:
i) The deposit of the security at the rate specified in rule-24;
and
ii) The payment of the fees at the rates specified in Rule-26
Where the licensing officer is of the opinion that the license
should not be granted as per rule-23, he shall, after offering
reasonable opportunity to the applicant to be heard, to make
an order rejecting the application. The said order shall set
out the reasons for such refusal which shall be
communicated to the applicant.
65. 4.Form VI: License-issued from the office of
Licensing officer:
Every license granted under section-12(1) shall be in
form-VI. Every license granted or renewed under rule-29
shall be subject to conditions laid down therein; which
need to be specifically adhered to.
5. Form-VI-A: Notice of commencement / completion
of contract work to be submitted by the contractor:
As per rule-25(2)(viii), the licensee shall within 15 days
of the commencement and completion of each contract
work, submit a return to the inspector appointed under
section-28 of the act, intimating the actual date of the
commencement or as the case may be, completion of
such contract work in form-VI-A.
66. 6. Form-VI-B: Notice of commencement / completion of
contract work to be submitted by the principal
employer:
As per rule-81(3), every principal employer shall within 15
days of the commencement or completion of each
contract work, submit a return to the inspector appointed
under section – 28 of the act, intimating the actual date of
the commencement or as the case may be, completion of
such contract work in form-VI-B.
7. Form-VII: Application for renewal of licenses:
As per rule-29(2), every contractor shall apply to the
licensing officer for renewal of license. Every such
application shall be in form-VII in triplicate and shall be
made in less than 30 days before the date on which the
license expires. If the application is so made, the license
shall be deemed to have been renewed until such date the
renewed license is issued. The fees chargeable for renewal
of license shall be the same as for the grant thereof.
67. 8. Forms VIII & X: Application of temporary registration
of establishment employing contract labour:
As per rule-32, where conditions arise in an establishment
requiring the employment of contract labour immediately
and such employment is estimated to last for not more
than 15 days, the principal employer of the establishment
or the contractor, as the case may be, may apply for a
temporary certificate of registration of license to the
registering officer or the licensing officer as the case may
be, having jurisdiction over the area in which the
establishment is situated.
The application for such temporary certificate of
registration or license shall be made in triplicate in forms-
VIII and X respectively and shall be accompanied by a
demand draft showing payment of appropriate fees and in
the case of license, the appropriate amount of security.
68. 9. Form-XI: Grant of temporary certificate of
registration / license:
The specimen of the license issued by the appropriate
by the appropriate government under rule-32 is as per
copy.
10. Form-XII: Register of contractors:
As per rule-74, every principal employer shall
maintain in respect of each registered establishment,
a register of contractors in form-XII as per specimen.
69. 11. Form-XIII: Register of workmen employed by
contractor:
As per rule-75, every contractor shall maintain in
respect of each registered establishment, where he
employed contract labour, a register in form-XIII s
per specimen.
12. Form-XIV: Employment Card:
As per rule-76, every contractor shall issue an
employment card in form XIV to each workman
within 3 days of being employed. The card shall be
maintained up to date; any change in the
particulars shall be entered therein.
70. 13. Form-XV: Service certificate:
As per rule-77, on the termination of employment of
the contractor’s workman for any reason whatsoever,
the contactor shall issue to the workman, whose
services have been so terminated, a service certificate
in form-XV.
14. Forms-XVI, XVII & XVIII: Muster roll and
register of wages:
Every contractor shall, in respect of each work on
which he engages contract labour, maintain a muster
roll and a register of wages in forms-XVI and XVII
respectively. It may be clarified that where the
contractor pays wages to his workmen in a wage
period i.e., a fortnight or less. In such a situation, a
register of wages-cum-muster roll as per form-XVIII
needs to be maintained.
71. 15. Form-XIX: Wage slip:
Every contractor shall in respect of each work on
which he engages contract labour, whether the wage
period is one week or more, shall issue wage slips in
form-XIX to the workmen at least a day prior to the
disbursement of wages.
16. Forms-XX, XXI, XXII and XXIII: Register of
deductions for damage or loss/register of
fines/register of advances/register of overtime:
Every contractor shall maintain a register of
deductions for damage or loss/register of
fines/register of advances/register of overtime in
forms-XX, XXI, XXII and XXIII respectively.
72. 17. Form-XXIV: Return to be sent by the
contractor to the licensing officer:
Every contractor shall send half-yearly return in
form-XXIV in triplicate, so as to reach the
licensing officer not later than 30 days from the
close of the half-year. Hence, the return is to be
sent for the period i.e., from 1st
January and 1st
July,
every year.
18. Form-XXV: Annual returns by the principal
employer to the registering officer:
Every principal employer of a registered
establishment shall send annual returns in form-
XXV in duplicate, so as to reach the registering
officer concerned not later than February 15th
following the end of the year to which it relates.
73. Conclusion
Contract Labour problem is a human and managerial
problem. Therefore, it requires managerial and human
solution.
Two main issues hunt them-
1. Security of service
2. Parity with regular employees
1. Insecurity of service is in-built in contract labour system
but if we go by 2nd
NCLR Report and ongoing trends
contract labour to be employed on core activities- same
pay for same and similar nature of job- AP Law/ central
Bill.
2. Fair treatment and some semblance of parity and equity
- in core jobs (also in some non – core jobs).
IISCO/ BHEL experiments.
