• PAGE ONE
• INDEX
• HOME

The contract labour law -- II

Akshey Kumar

SECTION 2(1)(c) of the Contract Labour (Regulation and Abolition) Act, 1970 states that `contractor' in relation to an establishment means a person who undertakes to produce a given result for the establishment, other than a mere supplier of goods or art icles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor.

Section 12 prohibits contractors from undertaking or executing any work through contract labour unless a licence is issued in that behalf by the licensing officer appointed by the government. The licence may contain conditions, inter alia, as to hours of work, fixation of wages and other essential amenities in respect of contract labour and the deposit of security for the due performance of the conditions.

It has been held that the Act imposes a liability not to undertake or execute any work through contract labour without a licence. This liability continues until the licence is obtained. Undertaking or executing any work through contract labour without a licence constitutes a fresh offence everyday on which it continues. In a Supreme Court case, Labourers working on Salal Hydro Project vs State of J&K, it was held that sub-contractors or piece wagers are equally responsible for obtaining licence under th e Act.

Section 13 states that every application for the grant of licence shall be made in the prescribed form and contain particulars regarding location of the establishment, the nature of process and operation/work for which contract labour is to be employed. The licensing officer may make investigation in respect of the application before granting the licence. Such a licence granted shall be initially valid for 12 months as provided under the rules.

Section 14 empowers the licensing officer to revoke or suspend the licence or forfeit the sum of security if satisfied that the licence granted had been obtained by misrepresentation or suppression of any material fact, or the holder of the licence has, without reasonable cause, failed to complywith the conditions stipulated or contravened any of the provisions of the Act or the rules made thereunder. The contractor may be given an opportunity of showing cause before taking the action for revocation or suspension of the contract. The licensing officer may vary or amend a licence subject to rules made in this behalf. It has been held that the licensing officer discharging functions under Section 14 is not a court.

Welfare and health of contract labour: Sections 16 to 19 impose obligations on the contractor to provide and maintain canteens and rest rooms of the prescribed standards, a sufficient supply of wholesome drinking water at convenient places, a sufficient number of latrines and urinals of prescribed types at convenient and accessible places, washing facilities, and to provide and maintain a readily accessible (during all working hours) first-aid box equipped with prescribed contents in every establishment for the use of the contract labour.

Section 21 provides that a contractor shall be responsible for the payment of wages to each worker employed by him as contract labour. Such wages shall be paid before the expiry of the prescribed period. It further imposes a duty on the contractor to ens ure the disbursement of wages in the presence of the authorised representative of the principal employer.

According to the rules framed under the Act, no wage period shall exceed one month. All payments of wages shall be made on a working day at the working premises and during the working time. Wages shall be paid without any deductions of any kind except pe rmissible under the Payment of Wages, 1936. A notice showing the wage period and the place and time of disbursement shall be displayed at the place of work.

Liabilities, responsibilities of principal employer

Section 7 requires every principal employer of an establishment to which the Act applies to get the establishment registered with the registering officer before employing contract labour.

Section 20(1) provides that if any amenity regarding canteens, rest rooms, drinking water, latrines and urinals, washing facilities and first-aid facilities required to be provided by the contractor under Sections 16 to 19 is not provided by the contractor within the prescribed time, such amenity shall be provided by the principal employer.

Section 21(2) requires every principal employer to nominate a representative to be present at the time of disbursement of wages by the contractor.

Section 21(4) provides that in case the contractor fails to make payment of wages within the prescribed period or makes short-payment, the principal employer shall be liable to make payment of wages in full or the unpaid balance due as the c ase may be to the contract labour employed by the contractor.

Section 23 provides that whoever contravenes any provision of the Act or of any rules prohibiting, restricting or regulating the employment of contract labour, shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to Rs. 1,000 or with both.

Section 25(1) states that if the person committing an offence under this Act is a company, the company as well as every person in charge of and responsible to the company for the conduct of its business at the time of the commission of the offe nce, shall be deemed to be guilty and punished accordingly. Explanation to the section provides that `company' means any body corporate and includes a firm or other association of individuals; and `director' in relation to a firm means a partner in the firm.

Section 29 requires every principal employer to maintain registers and records of the contract labour employed, the nature of work performed by the contract labour, the rate of wages paid to the contract labour and other prescribed particulars. The section further requires the principal employer to exhibit notices in the prescribed form within the premises of the establishment containing particulars about the hours of work, nature of duty and other prescribed information.

Rule 72 provides that the principal employer shall ensure the presence of his authorised representative at the place and time of disbursement of wages by the contractor to the workmen.

Appointment of inspecting staff: Section 28 empowers the government to appoint, by notification in the gazette, inspectors for the purposes of the Act. An inspector may, within the local limits for which he is appointed, enter any premises or place where contract labour is employed for the purpose of examining any register or record or notices required to be kept or exhibited by or under the Act or rules made thereunder and require the production thereof for inspection, may examine any person whom he fi nds in any such premises or place and who is reasonably believed to be a workman employed therein, require any person giving out work and any workman to give any information regarding the names and addresses of the persons to and for whom the work is giv en out or received, and seize or take copies of registers, record of wages or notices considered relevant in respect of an offence under the Act.

Section 22 provides for penalties for obstructions to an inspector in the discharge of his duties.

Prohibition of employment of contract labour

Section 10 empowers the appropriate government, after consultation with the Central Board or the State Board, as the case may be, to prohibit, by notification in the official gazette, employment of contract labour in any process, operation or other work in any establishment. The government shall have regard to the conditions of work and benefits provided for the contract labour in that establishment and other relevant factors, such as:

a) whether the process, operation or other work is incidental to, or necessary for, the industry, trade, business, manufacture or occupation that is carried on in the establishment;

b) whether it is of perennial nature, that is to say, it is of sufficient duration having regard to the nature of industry, trade, business, manufacture or occupation carried on in that establishment;

c) whether it is done ordinarily through regular workmen in that establishment or an establishment similar thereof;

d) whether it is sufficient to employ considerable number of whole-time workmen.

If the work for which contract labour is employed is incidental to or closely connected with the main activity of the industry and is of a perennial and of permanent nature, abolition of contract labour would be justified. The Central Government has, by various notifications, prohibited employment of labour in respect of certain employments in coal, iron ore, limestone, fire-clay, mica, chromite, gypsum, dolomite and manganese mines, railways, coal washeries, and so on. Vide notification dated December 27, 1990, the Central Government has prohibited the employment of contract labour in painting of signals and signal posts in Indian Railways, except those which are part of construction activity consisting of new installations, remodelling, repairs and overhauling of signalling equipment and for emergency works not covered by routine maintenance.

(To be concluded)