The Contract Labour (Regulation and Abolition) Act, 1970

(1) This Act may be called the ContractLabour (Regulation and Abolition) Act, 1970. (2) It extends to the whole of India. (3) It shall come into force on such date1as the Central Government may, by notification in theOfficial Gazette, appoint and different dates may be appointed for different provisions of this Act. (4) It applies-- (a) to every establishment in which twenty or more workmen are employed or were employed onany day of the preceding twelve months as contract labour; (b) to every contractor who employees or who employed on any day of the preceding twelvemonths twenty or more workmen: Provided that the appropriate Government may, after giving not less than two months notice of itsintention so to do, by notification in the Official Gazette, apply the provisions of this Act to anyestablishment or contractor employing such number of workmen less than twenty as may be specified inthe notification. (5) (a) It shall not apply to establishments in which work only of an intermittent or casual nature isperformed. (b) If a question arises whether work performed in an establishment is of an intermittent or casualnature, the appropriate Government shall decide that question after consultation with Central Board or, asthe case may be, a State Board, and its decision shall be final. Explanation.--For the purpose of this sub-section, work performed in an establishment shall not bedeemed to be of an intermittent nature-- (i) if it was performed for more than one hundred and twenty days in the preceding twelvemonths, or (ii) if it is of a seasonal character and is performed for more than sixty days in a year. STATE AMENDMENTS Maharashtra Amendment of section 1 of 37 of 1970.--In Section 1 of the Contract Labour (Regulation andAbolition) Act, 1970, in its application to the State of Maharashtra, in sub-section (4),-- (a) in clause (a), for the words "twenty or more workmen" the words "fifty or more workmen" shallbe substituted; (b) in clause (b), for the words "twenty or more workmen" the words "fifty or more workmen" shall besubstituted; (c) in the proviso, for the words "less than twenty" the words "less than fifty" shall be substituted. [Vide Maharashtra Act 2 of 2017, s. 2.] Andhra Pradesh Amendment of section 1 central Act 37 of 1970.--In the Contract Labour (Regulation andAbolition) Act, 1970, in section 1, in sub-section (4), in clauses (a), (b) and the provisio thereunder, forthe word "twenty" the word "fifty" shall be substituted. [Vide Andhra Pradesh Act 21 of 2015, s. 2.] Uttar Pradesh.-- In section 1 of the Contract Labour (Regulation and Abolition) Act, 1970 hereinafter referred to as theprincipal Act, for sub-section (4) the following sub-section shall be substituted-- "(4) It applies-- (a) to every establishment in which fifty or more workmen are employed or were employed on anyday of the preceding twelve months as contract labour; (b) to every contractor who employs or who employed on any day of the preceding twelve monthsfifty or more workmen. Provided that the State Government may, after giving not less than two month' notice of its intentionso to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment orcontractor employing such number of workmen less than fifty as may be specified in the notification." [Vide the Uttar Pradesh Act 14 of 2018, s. 2] Union Territory Of Ladakh Section 1.--In sub-section (4), in clause (a), for "twenty", substitute "forty". [Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020,Notification no. S.O. 1123(E), dated (18-3-2020) and vide Union Territory of Ladakh Reorganisation(Adaptation of Central Laws) Order, 2020, Notification No. S.O.3774(E), dated (23-10-2020).]Rajasthan Amendment of section 1, Central Act No. 37 of 1970.For the existing sub-section (4) of section 1 of the Contract Labour (Regulation and Abolition) Act, 1970 (Central Act No. 37 of 1970), in its application to the State of Rajasthan, the following shall be substituted, namely:- (4) It applies- (a) to every establishment in which fifty or more workmen are employed or were employed onany day of the preceding twelve months as contract labour; (b) to every contractor who employs or who employed on any day of the preceding twelvemonths fifty or more workmen: Provided that the State Government may, after giving not less than two months notice of its intentionso to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment orcontractor employing such number of workmen less than fifty as may be specified in the notification. [Vide Rajasthan Act 19 of 2014, s. 2] Gujarat Amendment of section 1 of 37 of 1970.--In the Contract Labour (Regulation and Abolition) Act, 1970, in its application to the State of Gujarat (hereinafter referred to as “the principal Act”), in section 1, sub-section (4),-- (i) in clause (a), for the word “twenty”, the word “fifty” shall be substituted; (ii) in clause (b), for the word “twenty”, the word “fifty” shall be substituted; (iii) in the proviso, for the word “twenty”, the word “fifty” shall be substituted. [Vide Gujarat Act 2 of 2021, s. 2]

(1) In this Act, unless the context otherwise requires,-- 2[(a) "appropriate Government" means,-- (i) in relation to an establishment in respect of which the appropriate Government under theIndustrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government; (ii) in relation to any other establishment, the Government of the State in which that otherestablishment is situate; (b) a workman shall be deemed to be employed as "contract labour" in or in connection with thework of an establishment when he is hired in or in connection with such work by or through acontractor, with or without the knowledge of the principal employer; (c) "contractor", in relation to an establishment, means a person who undertakes to produce agiven result for the establishment, other than a mere supply of goods of articles of manufacture tosuch establishment, through contract labour or who supplies contract labour for any work of theestablishment and includes a sub-contractor; (d) "controlled industry" means any industry the control of which by the Union has been declaredby any Central Act to be expedient in the public interest; (e) "establishment" means-- (i) any office or department of the Government or a local authority, or (ii) any place where any industry, trade, business, manufacture or occupation is carried on; (f) "prescribed" means prescribed by rules made under this Act; (g) "principal employer" means-- (i) in relation to any office or department of the Government or a local authority, the head ofthat office or department or such other officer as the Government or the local authority, as thecase may be, may specify in this behalf, (ii) in a factory, the owner or occupier of the factory and where a person has been named asthe manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named, (iii) in a mine, the owner or agent of the mine and where a person has been named as themanager of the mine, the person so named, (iv) in any other establishment, any person responsible for the supervision and control of theestablishment. Explanation.--For the purpose of sub-clause (iii) of this clause, the expressions "mine", "owner" and"agent" shall have the meanings respectively assigned to them in clause (j), clause (l) and clause (c) ofsub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952); (h) "wages" shall have the meaning assigned to it in clause (vi) of section 2 of the Payment ofWages Act, 1936 (4 of 1936); (i) "workman" means any person employed in or in connection with the work of anyestablishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clericalwork for hire or reward, whether the terms of employment be express or implied, but does not includeany such person-- (A) who is employed mainly in a managerial or administrative capacity; or (B) who, being employed in a superviory capacity draws wages exceeding five hundredrupees per mensem or exercises, either by the nature of the duties attached to the office or byreason of the powers vested in him, functions mainly of a managerial nature; or (C) who is an out-worker, that is to say, a person to whom any articles or materials are givenout by or on behalf of the principal employer to be made up, cleaned, washed, altered,ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of thetrade or business of the principal employer and the process is to be carried out either in the homeof the out-worker or in some other premises, not being premises under the control andmanagement of the principal employer. (2) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir* shall,in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State.

(1) The Central Government shall, as soon as may be, constitute aboard to be called the Central Advisory Contract Labour Board (hereinafter referred to as the CentralBoard) to advise the Central Government on such matters arising out of the administration of this Act asmay be referred to it and to carry out other functions assigned to it under this Act. (2) The Central Board shall consist of-- (a) a Chairman to be appointed by the Central Government; (b) the Chief Labour Commissioner (Central), ex officio; (c) such number of members, not exceeding seventeen but not less than eleven, as the CentralGovernment may nominate to represent that Government, the Railways, the coal industry, the miningindustry, the contractors, the workmen and any other interests which, in the opinion of the CentralGovernment, ought to be represented on the Central Board. (3) The number of persons to be appointed as members from each of the categories specified insub-section (2), the term of office and other conditions of service of, the procedure to be followed in thedischarge of their functions by, and the manner of filling vacancies among, the members of the CentralBoard shall be such as may be prescribed: Provided that the number of members nominated to represent the workmen shall not be less than thenumber of members nominated to represent the principal employers and the contractors.

(1) The State Government may constitute a board to be called the StateAdvisory Contract Labour Board (hereinafter referred to as the State Board) to advise the StateGovernment on such matters arising out of the administration of this Act as may be referred to it and tocarry out other functions assigned to it under this Act. (2) The State Board shall consist of-- (a) a Chairman to be appointed by the State Government; (b) the Labour Commissioner, ex officio, or in his absence any other officer nominated by theState Government in that behalf; (c) such number of members, not exceeding eleven but not less than nine, as the StateGovernment may nominate to represent that Government, the industry, the contractors, the workmenand any other interests which, in the opinion of the State Government, ought to be represented on theState Board. (3) The number of persons to be appointed as members from each of the categories specified insub-section (2), the term of office and other conditions of service of, the procedure to be followed in thedischarge of their functions by, and the manner of filling vacancies among the, members of the StateBoard shall be such as may be prescribed: Provided that the number of members nominated to represent the workmen shall not be less than thenumber of members nominated to represent the principal employers and the contractors.

(1) The Central Board or the State Board, as the case may be,may constitute such committees and for such purpose or purposes as it may think fit. (2) The committee constituted under sub-section (1) shall meet at such times and places and shallobserve such rules of procedure in regard to the transaction of business at its meetings as may beprescribed. (3) The members of a committee shall be paid such fees and allowances for attending its meetings asmay be prescribed: Provided that no fees shall be payable to a member who is an officer of Government or of anycorporation established by any law for the time being in force.