The Contract Labour (Regulation and

Abolition) Act, 1970

Enactment Date- 5 September 1970
Enforcement Date- 10 February 1971
An Act to regulate the employment of contract labour in
certain establishments and to provide for its abolition in
certain circumstances and for matters connected therewith.
Be it enacted by Parliament in the Twenty-first Year of the
Republic of India.
It extends to the whole of India.
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.
2. Definitions .-(1) In this Act, unless the context otherwise
requires,-
[[(a) "appropriate Government" means,-
(i) in relation to an establishment in respect of which the
appropriate Government under the Industrial Disputes Act,
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,
(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;
(h) "wages" shall have the meaning assigned to it in clause
(vi) of section 2 of the Payment of Wages Act, 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 and 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.
CHAPTER II The Advisory Boards
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.
(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.
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.
(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.
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.
(2) The committee constituted under sub-section (1) shall
meet at such time 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 any law for the time being in force.
CHAPTER III Registration Of Establishments Employing
Contract Labour
6. Appointment of Registering 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 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 :
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.
9. Effect of non-registration .-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.
M.M.M.I. 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 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.
CHAPTER IV Licensing Of Contractors
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.
(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.
(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-

(a) a licence granted under section 12 has been obtained by

misrepresentation 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.
(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.
CHAPTER V Welfare And Health Of Contract Labour
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.
(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-
(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.
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.
(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 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.
CHAPTER VI Penalties And Procedure
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.

(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 anything 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 a 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 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 of 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.
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.
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:
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.
CHAPTER VII Miscellaneous
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.
(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
(e) exercise such other powers as may be prescribed.
(3) Any information 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.
(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.
 Short Notes for The Contract Labour
(Regulation and Abolition) Act, 1970:-
 Enactment Date- 5 September 1970
 Enforcement Date- 10 February 1971
 >=20 Workers, <20, 2 Months’ Notice by AG
 Work is of Intermittent nature:-
o <120 Days in preceding 12 Months
o Of Seasonal character and <60 Days in a year
 Workman excludes:-
o MA
o Supervisory and earns > Rs 500
o Outworker
 CAB:-
o Chairman
o CLC
o Members of CG(>=11<=17)
 Registering Officer- Registration of establishment
 Licensing Officer- License to Contractor
 Canteen= >=100 Workers
 Register= Principal Employer and Contractor
 Complaint made for alleged commission of the offence
came to the knowledge of an inspector= Within 3 Months
 Complaint made for offence consists of disobeying a
written order made by an inspector= Within 6 Months
 Penalties:-
o Obstructing an Inspector
o Refuses to produce Register
Fine- Rs 500, Imp.- 3 Months or Both
o Contravention regarding employment of CL
Fine- Rs 1000, Imp.- 3 Months or Both
If Continue- Rs 100/Day