Central Government Act

the Contract Labour (Regulation and Abolition) Act, 1970

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

1 Short title, extent, commencement and application. -

(1) This Act may be called the Contract Labour (Regulation and Abolition) Act,
1970.
(2) It extends to the whole of India.
(3) It shall come into force on such date 1 as the Central Government may, by
notification in the Official 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 on any day of the preceding twelve months as contract labour;
(b) to every contractor who employs or who employed on any day of the preceding
twelve months twenty or more workmen:
Provided that the appropriate Government may, after giving not less than two
months' notice of its intention so to do, by notification in the Official Gazette, apply
the provisions of this Act to any establishment or contractor employing such
number of workmen less than twenty as may be specified in the notification.
(5) (a) It shall not apply to establishments in which work only of an intermittent or
casual nature is performed.
(b) If a question arises whether work performed in an establishment is of an
intermittent or casual nature, the appropriate Government shall decide that
question after consultation with the Central Board or, as the 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 be deemed to be of an
intermittent nature-
(i) if it was performed for more than one hundred and twenty days in the preceding
twelve months, or
(ii) if it is of a seasonal character and is performed for more than sixty days in a
year.
STATE AMENDMENT
Maharashtra -In section 1, in sub-section (5), after clause (b), add the following
clause, namely:- "(c) Notwithstanding anything contained in clause (b) or any
other provisions of this Act, the work performed or carried out in the area of
Special Economic Zone (declared as such by the Government of India), which is of
ancillary nature such as canteen, gardening, cleaning, security, courier services,
transport of raw material and finished products, or loading and unloading of goods

1
within the premises of a factory or establishments which are declared 100 per cent.
export units by Government, required to achieve the objective of a principal
establishment in the said area, shall be deemed to be of temporary and intermittent
nature irrespective of the period of performance of the work by the workers in such
ancillary establishments." [ Vide The Contract Labour (Regulation and Abolition)
(Maharashtra Amendment) Act, 2005 (Maharashtra Act 13 of 2006), sec. 2 (w.e.f.
2-5-2006).]
2 Definitions. -
(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 the Industrial 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 other establishment is situated;]
(b) a workman shall be deemed to be employed as "contract labour" in or in
connection with the work of an establishment when he is hired in or in connection
with such work by or through a contractor, with or without the knowledge of the
principal employer;
(c) "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 goods or
articles of manufacture to such establishment, through contract labour or who
supplies contract labour for any work of the establishment and includes a sub-
contractor;
(d) "controlled industry" means any industry the control of which by the Union has
been declared by 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 of that office or department or such other officer as the Government or
the local authority, as the case 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 as the manager of the factory under the Factories Act, 1948 (63 of 1948),
the person so named,

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(iii) in a mine, the owner or agent of the mine and where a person has been named
as the manager of the mine, the person so named,
(iv) in any other establishment, any person responsible for the supervision and
control of the establishment.
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) of sub-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 of Wages Act, 1936 (4 of 1936);
(i) "workman" means any person employed in or in connection with the work of
any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory,
technical or clerical work for hire or reward, whether the terms of employment be
express or implied, but does not include any such person-
(A) who is employed mainly in a managerial or administrative capacity; or
(B) who, being employed in a supervisory capacity draws wages exceeding five
hundred rupees per mensem or exercises, either by the nature of the duties
attached to the office or by reason 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 given out 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 the trade or business of the principal employer and the
process is to be carried out either in the home of the out-worker or in some other
premises, not being premises under the control and management 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. STATE AMENDMENT Andhra
Pradesh. -In section 2, in sub-section (1), after clause (d), insert the following
clause, namely:- '(dd) "core activity of an establishment" means any activity for
which the establishment is set up and includes any activity which is essential or
necessary to the core activity, but does not include,-
(1) sanitation works, including sweeping, cleaning, dusting and collection and
disposal of all kinds of waste;
(2) watch and ward services including security service;
(3) canteen and catering services;
(4) loading and unloading operations;

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(5) running of hospitals, educational and training institutions, guest houses, clubs
and the like where they are in the nature of support services of an establishment;
(6) courier services which are in nature of support services of an establishment;
(7) civil and other constructional works, including maintenance;
(8) gardening and maintenance of lawns, etc.;
(9) house keeping and laundry services, etc., where they are in nature support
services of an establishment;
(10) transport services including ambulance services;
(11) any activity of intermittent in nature even if that constitutes a core activity of
an establishment; and
(12) any other activity which is incidental to the core activity: Provided that the
above activities by themselves are not the "core activities" of such establishment.' [
Vide Contract Labour (Regulation and Abolition) (Andhra Pradesh) (Amendment)
Act, 2003 (Andhra Pradesh Act 10 of 2003), sec. 2.]
3. Central Advisory Board.-
(1) The Central Government shall, as soon as may be, constitute a board to be
called the Central Advisory Contract Labour Board (hereinafter referred to as the
Central Board) to advise the Central Government on such matters arising out of the
administration of this Act as may be referred to it and to carry out other functions
assigned to it under this Act. -(1) The Central Government shall, as soon as may be,
constitute a board to be called the Central Advisory Contract Labour Board
(hereinafter referred to as the Central Board) to advise the Central Government on
such matters arising out of the administration of this Act as may 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 Central Government may nominate to represent that Government, the
Railways, the coal industry, the mining industry, the contractors, the workmen and
any other interests which, in the opinion of the Central Government, ought to be
represented on the Central Board.
(3) The number of persons to be appointed as members from each of the categories
specified in sub-section (2), the term of office and other conditions of service of,
the procedure to be followed in the discharge of their functions by, and the manner
of filling vacancies among, the members of the Central Board shall be such as may
be prescribed: Provided that the number of members nominated to represent the
workmen shall not be less than the number of members nominated to represent
the principal employers and the contractors. state amendment Andhra Pradesh.-

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Omit section 3. [Vide Contract Labour (Regulation and Abolition) (Andhra
Pradesh) (Amendment) Act, 2003 (Andhra Pradesh Act 10 of 2003), sec. 3.]
4. State Advisory Board.-
(1) The State Government may constitute a board to be called the State Advisory
Contract Labour Board (hereinafter referred to as the State Board) to advise the
State Government on such matters arising out of the administration of this Act as
may be referred to it and to carry out other functions assigned to it under this Act. -
(1) The State Government may constitute a board to be called the State Advisory
Contract Labour Board (hereinafter referred to as the State Board) to advise the
State Government on such matters arising out of the administration of this Act as
may be referred to it and to carry 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 the State Government in that behalf;
(c) such number of members, not exceeding eleven but not less than nine, as the
State Government may nominate to represent that Government, the industry, the
contractors, the workmen and any other interests which, in the opinion of the State
Government, ought to be represented on the State Board.
(3) The number of persons to be appointed as members from each of the categories
specified in sub-section (2), the term of office and other conditions of service of,
the procedure to be followed in the discharge of their functions by, and the manner
of filling vacancies among, the members of the State Board shall be such as may be
prescribed: Provided that the number of members nominated to represent the
workmen shall not be less than the number of members nominated to represent
the principal employers and the contractors. state amendment Andhra Pradesh.-
Omit section 4. [Vide Contract Labour (Regulation and Abolition) (Andhra
Pradesh) (Amendment) Act, 2003 (Andhra Pradesh Act 10 of 2003), sec. 3.]
5. Power to constitute committees.-
(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. -(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 shall observe such rules of procedure in regard to the transaction of
business at its meetings as may be prescribed.
(3) The members of a committee shall be paid such fees and allowances for
attending its meetings as may be prescribed: Provided that no fees shall be payable
to a member who is an officer of Government or of any corporation established by

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any law for the time being in force. state amendment Andhra Pradesh.-Omit
section 5. [Vide Contract Labour (Regulation and Abolition) (Andhra Pradesh)
(Amendment) Act, 2003 (Andhra Pradesh Act 10 of 2003), sec. 3.]
6. Appointment of registering officers.-The appropriate Government may, by an
order notified in the Official Gazette- -The appropriate Government may, by an
order notified in the Official Gazette-"
(a) appoint such persons, being Gazetted Officers of Government, as it thinks fit to
be registering officers for the purposes of this Chapter; and
(b) define the limits, within which a registering officer shall exercise the powers
conferred on him by or under this Act.
7. Registration of certain establishments.-
(1) Every principal employer of an establishment to which this Act applies shall,
within such period as the appropriate Government may, by notification in the
Official Gazette, fix in this behalf with respect to establishments generally or with
respect to any class of them, make an application to the registering officer in the
prescribed manner for registration of the establishment: -(1) Every principal
employer of an establishment to which this Act applies shall, within such period as
the appropriate Government may, by notification in the Official Gazette, fix in this
behalf with respect to establishments generally or with respect to any class of them,
make an application to the registering officer in the prescribed manner for
registration of the establishment\:" Provided that the registering officer may
entertain any such application for registration after expiry of the period fixed in
this behalf, if the registering officer is satisfied that the applicant was prevented by
sufficient cause from making the application in time.
(2) If the application for registration is complete in all respects, the registering
officer shall register the establishment and issue to the principal employer of the
establishment a certificate of registration containing such particulars as may be
prescribed.
8. Revocation of registration in certain cases.-If the registering officer is satisfied,
either on a reference made to him in this behalf or otherwise, that the registration
of any establishment has been obtained by misrepresentation or suppression of any
material fact, or that for any other reason the registration has become useless or
ineffective and, therefore, requires to be revoked, the registering officer may, after
giving an opportunity to the principal employer of the establishment to be heard
and with the previous approval of the appropriate Government, revoke the
registration. -If the registering officer is satisfied, either on a reference made to
him in this behalf or otherwise, that the registration of any establishment has been
obtained by misrepresentation or suppression of any material fact, or that for any
other reason the registration has become useless or ineffective and, therefore,

6
requires to be revoked, the registering officer may, after giving an opportunity to
the principal employer of the establishment to be heard and with the previous
approval of the appropriate Government, revoke the registration."
9. Effect of non-registration.-No principal employer of an establishment, to which
this Act applies, shall- -No principal employer of an establishment, to which this
Act applies, shall-"
(a) in the case of an establishment required to be registered under section 7, but
which has not been registered within the time fixed for the purpose under that
section,
(b) in the case of an establishment the registration in respect of which has been
revoked under section 8, employ contract labour in the establishment after the
expiry of the period referred to in clause (a) or after the revocation of registration
referred to in clause (b), as the case may be.
10 Prohibition of employment of contract labour. -
(1) Notwithstanding anything contained in this Act, the appropriate Government
may, after consultation with the Central Board or, as the case may be, a State
Board, prohibit, by notification in the Official Gazette, employment of contract
labour in any process, operation or other work in any establishment.
(2) Before issuing any notification under sub-section (1) in relation to an
establishment, the appropriate 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 that is
carried on in that establishment;
(c) whether it is done ordinarily through regular workmen in that establishment or
an establishment similar thereto;
(d) whether it is sufficient to employ considerable number of whole-time workmen.
Explanation. -If a question arises whether any process or operation or other work
is of perennial nature, the decision of the appropriate Government thereon shall be
final. STATE AMENDMENTS Andhra Pradesh. -For section 10, substitute the
following section, namely:-" 10. Prohibition of employment of contract labour. -(1)
Notwithstanding anything contained in this Act, employment of contract labour in
core activities of any establishment if prohibited: Provided that the principal
employer may engage contract labour or a contractor to any core activitiy, if-

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(a) the normal functioning of the establishments is such that the activity is
ordinarily done through contractors; or
(b) the activities are such that they do not require full time workers for the major
portion of the working hours in a day or for longer periods, as the case may be;
(c) any sudden increase of volume of work in the core activity which needs to be
accomplished in a specified time.
(2) Designated authority. -(a) The 'appropriate Government' may by notification in
the Official Gazette appoint a designated authority to advise them on the question
whether any activity of a given establishment is a core activity or otherwise;
(b) if a question arises as to whether any activity of an establishment is a core
activity or otherwise the aggrieved party may make an application in such a form
and manner as may be prescribed, to the appropriate Government for decision;
(c) the appropriate Government may refer any question by itself or such
application made to them by any aggrieved party as prescribed in clause (b), as the
case may be, to the designated authority, which on the basis of relevant material in
its possession, or after making such an enquiry as deemed fit shall forward the
report to the appropriate Government, within a prescribed period and thereafter
the appropriate Government shall decide the question within the prescribed
period."
[ Vide Contract Labour (Regulation and Abolition) (Andhra Pradesh)
(Amendment) Act, 2003 (Andhra Pradesh Act 10 of 2003), sec. 4.]
Maharashtra -In section 10, in sub-section (1), after the words "Notwithstanding
anything contained in this Act", insert the words "but, subject to the provisions of
clause (c) of sub-section (5) of section 1". [ Vide The Contract Labour (Regulation
and Abolition) (Maharashtra Amendment) Act, 2005 (Maharashtra Act 13 of
2006), sec. 3 (w.e.f. 2-5-2006).]
11. Appointment of licensing officers.-The appropriate Government may, by an
order notified in the Official Gazette,-
(a) appoint such persons, being Gazetted Officers of Government, as it thinks fit to
be licensing officers for the purposes of this Chapter; and
(b) define the limits, within which a licensing officer shall exercise the powers
conferred on licensing officers by or under this Act.
12. Licensing of contractors.-
(1) With effect from such date as the appropriate Government may, by notification
in the Official Gazette, appoint, no contractor to whom this Act applies, shall
undertake or execute any work through contract labour except under and in
accordance with a licence issued in that behalf by the licensing officer. -(1) With
effect from such date as the appropriate Government may, by notification in the
Official Gazette, appoint, no contractor to whom this Act applies, shall undertake

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or execute any work through contract labour except under and in accordance with a
licence issued in that behalf by the licensing officer."
(2) Subject to the provisions of this Act, a licence under sub-section (1) may contain
such conditions including, in particular, conditions as to hours of work, fixation of
wages and other essential amenities in respect of contract labour as the appropriate
Government may deem fit to impose in accordance with the rules, if any, made
under section 35 and shall be issued on payment of such fees and on the deposit of
such sum, if any, as security for the due performance of the conditions as may be
prescribed.
13. Grant of licences.-
(1) Every application for the grant of a licence under sub-section (1) of section 12
shall be made in the prescribed form and shall contain the particulars regarding
the location of the establishment, the nature of process, operation or work for
which contract labour is to be employed and such other particulars as may be
prescribed. -(1) Every application for the grant of a licence under sub-section (1) of
section 12 shall be made in the prescribed form and shall contain the particulars
regarding the location of the establishment, the nature of process, operation or
work for which contract labour is to be employed and such other particulars as may
be prescribed."
(2) The licensing officer may make such investigation in respect of the application
received under sub-section (1) and in making any such investigation the licensing
officer shall follow such procedure as may be prescribed.
(3) A licence granted under this Chapter shall be valid for the period specified
therein and may be renewed from time to time for such period and on payment of
such fees and on such conditions as may be prescribed.
14. Revocation, suspension and amendment of licences.-
(1) If the licensing officer is satisfied, either on a reference made to him in this
behalf or otherwise, that- -(1) If the licensing officer is satisfied, either on a
reference made to him in this behalf or otherwise, that-"
(a) a licence granted under section 12 has been obtained by mis-representation or
suppression of any material fact, or
(b) the holder of a licence has, without reasonable cause, failed to comply with the
conditions subject to which the licence has been granted or has contravened any of
the provisions of this Act or the rules made thereunder, then, without prejudice to
any other penalty to which the holder of the licence may be liable under this Act,
the licensing officer may, after giving the holder of the licence an opportunity of
showing cause, revoke or suspend the licence or forfeit the sum, if any, or any
portion thereof deposited as security for the due performance of the conditions
subject to which the licence has been granted.

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(2) Subject to any rules that may be made in this behalf, the licensing officer may
vary or amend a licence granted under section 12.
15 Appeal. -
(1) Any person aggrieved by an order made under section 7, section 8, section 12 or
section 14 may, within thirty days from the date on which the order is
communicated to him, prefer an appeal to an appellate officer who shall be a
person nominated in this behalf by the appropriate Government: Provided that the
appellate officer may entertain the appeal after the expiry of the said period of
thirty days, if he is satisfied that the appellant was prevented by sufficient cause
from filing the appeal in time.
(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after
giving the appellant an opportunity of being heard dispose of the appeal as
expeditiously as possible.
16. Canteens.-
(1) The appropriate Government may make rules requiring that in every
establishment-
(a) to which this Act applies,
(b) wherein work requiring employment of contract labour is likely to continue for
such period as may be prescribed, and
(c) wherein contract labour numbering one hundred or more is ordinarily
employed by a contractor, one or more canteens shall be provided and maintained
by the contractor for the use of such contract labour.
(2) Without prejudice to the generality of the foregoing power, such rules may
provide for-
(a) the date by which the canteens shall be provided;
(b) the number of canteens that shall be provided, and the standards in respect of
construction, accommodation, furniture and other equipment of the canteens; and
(c) the foodstuffs which may be served therein and the charges which may be made
therefor.
17. Rest-rooms.-
(1) In every place wherein contract labour is required to halt at night in connection
with the work of an establishment-
(a) to which this Act applies, and
(b) in which work requiring employment of contract labour is likely to continue for
such period as may be prescribed, there shall be provided and maintained by the
contractor for the use of the contract labour such number of rest-rooms or such
other suitable alternative accommodation within such time as may be prescribed.

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(2) The rest-rooms or the alternative accommodation to be provided under sub-
section (1) shall be sufficiently lighted and ventilated and shall be maintained in a
clean and comfortable condition.
18. Other facilities.-It shall be the duty of every contractor employing contract
labour in connection with the work of an establishment to which this Act applies, to
provide and maintain- -It shall be the duty of every contractor employing contract
labour in connection with the work of an establishment to which this Act applies, to
provide and maintain-"
(a) a sufficient supply of wholesome drinking water for the contract labour at
convenient places;
(b) a sufficient number of latrines and urinals of the prescribed types so situated as
to be convenient and accessible to the contract labour in the establishment; and
(c) washing facilities.
19. First-aid facilities.-There shall be provided and maintained by the contractor so
as to be readily accessible during all working hours a first-aid box equipped with
the prescribed contents at every place where contract labour is employed by him. -
There shall be provided and maintained by the contractor so as to be readily
accessible during all working hours a first-aid box equipped with the prescribed
contents at every place where contract labour is employed by him."
20. Liability of principal employer in certain cases.-
(1) If any amenity required to be provided under section 16, section 17, section 18
or section 19 for the benefit of the contract labour employed in an establishment is
not provided by the contractor within the time prescribed therefor, such amenity
shall be provided by the principal employer within such time as may be prescribed.
-(1) If any amenity required to be provided under section 16, section 17, section 18
or section 19 for the benefit of the contract labour employed in an establishment is
not provided by the contractor within the time prescribed therefor, such amenity
shall be provided by the principal employer within such time as may be
prescribed."
(2) All expenses incurred by the principal employer in providing the amenity may
be recovered by the principal employer from the contractor either by deduction
from any amount payable to the contractor under any contract or as a debt payable
by the contractor.
21 Responsibility for payment of wages. -
(1) A contractor shall be responsible for payment of wages to each worker
employed by him as contract labour and such wages shall be paid before the expiry
of such period as may be prescribed.
(2) Every principal employer shall nominate a representative duly authorised by
him to be present at the time of disbursement of wages by the contractor and it

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shall be the duty of such representative to certify the amounts paid as wages in
such manner as may be prescribed.
(3) It shall be the duty of the contractor to ensure the disbursement of wages in the
presence of the authorised representative of the principal employer.
(4) In case the contractor fails to make payment of wages within the prescribed
period or makes short payment, then the principal employer shall be liable to make
payment of wages in full or the unpaid balance due, as the case may be, to the
contract labour employed by the contractor and recover the amount so paid from
the contractor either by deduction from any amount payable to the contractor
under any contract or as a debt payable by the contractor.
22. Obstructions.-
(1) Whoever obstructs an inspector in the discharge of his duties under this Act or
refuses or wilfully neglects to afford the inspector any reasonable facility for
making any inspection, examination, inquiry or investigation authorised by or
under this Act in relation to an establishment to which, or a contractor to whom,
this Act applies, shall be punishable with imprisonment for a term which may
extend to three months, or with fine which may extend to five hundred rupees, or
with both. -(1) Whoever obstructs an inspector in the discharge of his duties under
this Act or refuses or wilfully neglects to afford the inspector any reasonable facility
for making any inspection, examination, inquiry or investigation authorised by or
under this Act in relation to an establishment to which, or a contractor to whom,
this Act applies, shall be punishable with imprisonment for a term which may
extend to three months, or with fine which may extend to five hundred rupees, or
with both."
(2) Whoever wilfully refuses to produce on the demand of an inspector any register
or other document kept in pursuance of this Act or prevents or attempts to prevent
or does any thing which he has reason to believe is likely to prevent any person
from appearing before or being examined by an inspector acting in pursuance of
his duties under this Act, shall be punishable with imprisonment for a term which
may extend to three months, or with fine which may extend to five hundred rupees,
or with both.
23. Contravention of provisions regarding employment of contract labour.-
Whoever contravenes any provision of this Act or of any rules made thereunder
prohibiting, restricting or regulating the employment of contract labour, or
contravenes any condition of a licence granted under this Act, shall be punishable
with imprisonment for a term which may extend to three months, or with fine
which may extend to one thousand rupees, or with both, and in the case of a
continuing contravention with an additional fine which may extend to one hundred

12
rupees for every day during which such contravention continues after conviction
for the first such contravention.
24. Other offences.-If any person contravenes any of the provisions of this Act or
any rules made thereunder for which no other penalty is elsewhere provided, he
shall be punishable with imprisonment for a term which may extend to three
months, or with fine which may extend to one thousand rupees, or with both. -If
any person contravenes any of the provisions of this Act or any rules made
thereunder for which no other penalty is elsewhere provided, he shall be
punishable with imprisonment for a term which may extend to three months, or
with fine which may extend to one thousand rupees, or with both."
25. Offences by companies.-
(1) 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 offence shall be
deemed to be guilty of the offence and shall be liable to be proceeded against and
punished accordingly: -(1) 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
offence shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly\:" Provided that nothing contained in
this sub-section shall render any such person liable to any punishment if he proves
that the offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under
this Act has been committed by a company and it is proved that the offence has
been committed with the consent or connivance of, or that the commission of the
offence is attributable to any neglect on the part of any director, manager,
managing agent or any other officer of the company, such director, manager,
managing agent or such other officer shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly.
Explanation.-For the purpose of this section-
(a) ''company'' means any body corporate and includes a firm or other association
of individuals; and
(b) ''director'', in relation to a firm, means a partner in the firm.
26. Cognizance of offences.-No court shall take cognizance of any offence under
this Act except on a complaint made by, or with the previous sanction in writing of,
the inspector and no court inferior to that of a Presidency Magistrate or a
Magistrate of the first class shall try any offence punishable under this Act. -No
court shall take cognizance of any offence under this Act except on a complaint

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made by, or with the previous sanction in writing of, the inspector and no court
inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try
any offence punishable under this Act."
27. Limitation of prosecutions.-No court shall take cognizance of an offence
punishable under this Act unless the complaint thereof is made within three
months from the date on which the alleged commission of the offence came to the
knowledge of an inspector: -No court shall take cognizance of an offence
punishable under this Act unless the complaint thereof is made within three
months from the date on which the alleged commission of the offence came to the
knowledge of an inspector\:" Provided that where the offence consists of
disobeying a written order made by an inspector, complaint thereof may be made
within six months of the date on which the offence is alleged to have been
committed.
28. Inspecting staff.-
(1) The appropriate Government may, by notification in the Official Gazette,
appoint such persons as it thinks fit to be inspectors for the purposes of this Act,
and define the local limits within which they shall exercise their powers under this
Act. -(1) The appropriate Government may, by notification in the Official Gazette,
appoint such persons as it thinks fit to be inspectors for the purposes of this Act,
and define the local limits within which they shall exercise their powers under this
Act."
(2) Subject to any rules made in this behalf, an inspector may, within the local
limits for which he is appointed-
(a) enter, at all reasonable hours, with such assistance (if any), being persons in the
service of the Government or any local or other public authority as he thinks fit,
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 this Act or rules made thereunder, and require the production thereof for
inspection;
(b) examine any person whom he finds in any such premises or place and who, he
has reasonable cause to believe, is a workman employed therein;
(c) require any person giving out work and any workman, to give any information,
which is in his power to give with respect to the names and addresses of the
persons to, for and from whom the work is given out or received, and with respect
to the payments to be made for the work;
(d) seize or take copies of such register, record of wages or notices or portions
thereof as he may consider relevant in respect of an offence under this Act which he
has reason to believe has been committed by the principal employer or contractor;
and

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(e) exercise such other powers as may be prescribed.
(3) Any person required to produce any document or thing or to give any
information required by an inspector under sub-section (2) shall be deemed to be
legally bound to do so within the meaning of section 175 and section 176 of the
Indian Penal Code (45 of 1860).
(4) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), shall, so far
as may be, apply to any search or seizure under sub-section (2) as they apply to any
search or seizure made under the authority of a warrant issued under section 98 of
the said Code.
29. Registers and other records to be maintained.-
(1) Every principal employer and every contractor shall maintain such registers and
records giving such particulars of contract labour employed, the nature of work
performed by the contract labour, the rates of wages paid to the contract labour
and such other particulars in such form as may be prescribed. -(1) Every principal
employer and every contractor shall maintain such registers and records giving
such particulars of contract labour employed, the nature of work performed by the
contract labour, the rates of wages paid to the contract labour and such other
particulars in such form as may be prescribed."
(2) Every principal employer and every contractor shall keep exhibited in such
manner as may be prescribed within the premises of the establishment where the
contract labour is employed, notices in the prescribed form containing particulars
about the hours of work, nature of duty and such other information as may be
prescribed.
30. Effect of laws and agreements inconsistent with this Act.-
(1) The provisions of this Act shall have effect notwithstanding anything
inconsistent therewith contained in any other law or in the terms of any agreement
or contract of service, or in any standing orders applicable to the establishment
whether made before or after the commencement of this Act: -(1) The provisions of
this Act shall have effect notwithstanding anything inconsistent therewith
contained in any other law or in the terms of any agreement or contract of service,
or in any standing orders applicable to the establishment whether made before or
after the commencement of this Act\:" Provided that where under any such
agreement, contract of service or standing orders the contract labour employed in
the establishment are entitled to benefits in respect of any matter which are more
favourable to them than those to which they would be entitled under this Act, the
contract labour shall continue to be entitled to the more favourable benefits in
respect of that matter, notwithstanding that they receive benefits in respect of
other matters under this Act.

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(2) Nothing contained in this Act shall be construed as precluding any such
contract labour from entering into an agreement with the principal employer or the
contractor, as the case may be, for granting them rights or privileges in respect of
any matter which are more favourable to them than those to which they would be
entitled under this Act.
31. Power to exempt in special cases.-The appropriate Government may, in the case
of an emergency, direct, by notification in the official Gazette, that subject to such
conditions and restrictions, if any, and for such period or periods, as may be
specified in the notification, all or any of the provisions of this Act or the rules
made thereunder shall not apply to any establishment or class of establishments or
any class of contractors. -The appropriate Government may, in the case of an
emergency, direct, by notification in the official Gazette, that subject to such
conditions and restrictions, if any, and for such period or periods, as may be
specified in the notification, all or any of the provisions of this Act or the rules
made thereunder shall not apply to any establishment or class of establishments or
any class of contractors." state amendment Andhra Pradesh.-For section 31,
substitute the following section, namely:- "31. The power to exempt in special
cases.-
(1) The appropriate Government may, in public interest, direct, by notification in
the Official Gazette, that subject to such conditions and restrictions, if any, and for
such period or periods, as may be specified in the notification, all or any of the
provisions of this Act or the Rules made thereunder shall not apply to any
establishment or class of establishment or any class of contractors, as the case may
be.
(2) Where the operation of any of the provisions of this Act, under section 31(1) has
been excluded, such exclusion may at any time be revoked by the appropriate
Government by subsequent notification in the Official Gazette." [Vide Contract
Labour (Regulation and Abolition) (Andhra Pradesh) (Amendment) Act, 2003
(Andhra Pradesh Act 10 of 2003), sec. 5.]
32. Protection of action taken under this Act.-
(1) No suit, prosecution or other legal proceedings shall lie against any registering
officer, licensing officer or any other Government servant or against any member of
the Central Board or the State Board, as the case may be, for anything which is in
good faith done or intended to be done in pursuance of this Act or any rule or order
made thereunder. -(1) No suit, prosecution or other legal proceedings shall lie
against any registering officer, licensing officer or any other Government servant or
against any member of the Central Board or the State Board, as the case may be,
for anything which is in good faith done or intended to be done in pursuance of this
Act or any rule or order made thereunder."

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(2) No suit or other legal proceeding shall lie against the Government for any
damage caused or likely to be caused by anything which is in good faith done or
intended to be done in pursuance of this Act or any rule or order made thereunder.
33. Power to give directions.-The Central Government may give directions to the
Government of any State as to the carrying into execution in the State of the
provisions contained in this Act. -The Central Government may give directions to
the Government of any State as to the carrying into execution in the State of the
provisions contained in this Act."
34. Power to remove difficulties.-If any difficulty arises in giving effect to the
provisions of this Act, the Central Government may, by order published in the
Official Gazette, make such provisions not inconsistent with the provisions of this
Act, as appears to it to be necessary or expedient for removing the difficulty. -If any
difficulty arises in giving effect to the provisions of this Act, the Central
Government may, by order published in the Official Gazette, make such provisions
not inconsistent with the provisions of this Act, as appears to it to be necessary or
expedient for removing the difficulty."
35. Power to make rules.-
(1) The appropriate Government may, subject to the condition of previous
publication, make rules for carrying out the purposes of this Act. -(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;
(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;

17
(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.
3 [(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.] state amendment Andhra
Pradesh.-In section 35, in sub-section (2), omit clauses (a) and (b). [Vide Contract
Labour (Regulation and Abolition) (Andhra Pradesh) (Amendment) Act, 2003
(Andhra Pradesh Act 10 of 2003), sec. 6.]

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