Contract Labour(Regulation & Abolition) Act, 1970

Object Of The 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.

Applicability [Sec.1]

Every establishment in which 20 or more workmen are employed or were employed on any of the preceding 12 months as contract labour.

Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen.

Registration [7]

Principal employer employing 20 or more workers through the contractor or the contractor(s), needs to register its estblishment under the Act, on deposit of required fee in Form1.

Revocation Of Registration[9]

When obtained by misrepresentation or suppression of material facts etc. after opportunity to the principal employer. Sec.

License [Sec. 12/Rule 21]

  • Any Contractor engaging 20 or more workers needs to procure a License to operate, on deposit of required fee in Form IV.
  • Valid for specified period.

Revocation or Suspension & Amendment of Licences [14]

When obtained by misrepresen­tation or suppression of material facts. Failure of the contractor to comply with the conditions or contravention of Act or the Rules.

Prohibition of Employment of Contract Labour [10]

Only by the appropriate Government through issue of notification after consultation with the Board (and not Courts) can order the prohibition of employment of contract labour.

Welfare measures to be taken by the Contractor[16, 17]

On engaging 100 or more contract labour, a Contracto shall provide:

  • One or more canteens
  • First Aid facilities
  • Drinking water
  • Latrines
  • Washing facilities

Responsibility Of Contractor For Payment Of Wages

To pay tomely and to ensure the disbursement of wages in the presence of the authorised representative of the principal employer.

Rate Of Wages [21/25]

Shall not be less than the rates as fixed or prevailing or such employment as fixed by agreement

Number of Apprentices in Designated Trade

To be determined by the Central Government after consulting the Central Apprenticeship Council. [8]

Registers [Rules 75, 76 and 77]

Principal employer to maintain a register of contractors in respect of every establishment in Form XII.

Contractor to maintain register of workers for each registered establishment in Form XIII. To issue an employment card to each worker in Form XIV. To issue service certificate to every workman on his termination in Form XV.

When covered by Payment of Wages Act, register and records to be maintained are: Muster Roll, Register of Wages, Register of Deductions, Register of Overtime, Register of Fines, Register of Advances, Wage slip. [Rule 79]

Returns [Rule 82]

Contractor to send half yearly return in Form XXIV in duplicate within 30 days
Princlpal mployer to send annual return in Form XXViIn dupllcate before 15th Feb. following the end of the concerned year.

Liability-Principal Employer [20]

Principal Employer shall ensure provision for: Canteen, Rest-rooms, Sufficient supply of drinking water, latrines and urinals, washing facilities.
Principal employer entitled to recover from the contractor for providing such amenities or to make deductions from amount payable.


Every contractor shall:

  • Maintain Muster Roll and a Register of Wages In Form XVI and Form XVII respectively when combined.
  • Maintain a Register or wage-cum-Muster Roll in Form XVII where the wage period is a fortnight or less.
  • Maintain a Register of Deductions for damage or loss, Register or Fines.
  • Maintain Register of Advances in Form XX, form XXI and Form XXII respectively.
  • Maintain a Register of Overtime in Form XXIII.
  • Issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement of wages.
  • Obtain she signature or thumb impression of the worker concerned against the entries relating to him on the Register of Wages or Muster Roll-cum-Wages Register.
  • To display an abstract of the Act and Rules In English and Hindi and in the language spoken by the majority of workers in such form as may be approved by appropriate authority. [Rule 80]
  • To display notices showing rates of wages, hours of work, wage period, dates of payment, names and addresses of the inspector and to send copy to the inspector and any change forthwith. [Rule 81]

Penal Provision

  • For obstructing the inspector or failing to produce registers etc. :3 months' imprisonment or fine upto Rs.500, or both.
  • For violation of the provisions of Act or the Rules, impri-sonment of 3 months or fine upto Rs.1000.
  • On continuing contravention, additional line upto Rs. 100 per day. [Sec 22 & 23]