Furthermore the Supreme Court also said that the Act nowhere has said that the contract labourers are or should be treated as the employees of the employer, but they are the employees of the contractor. Registers and other records to be maintained 30. Steel Authority of India Ltd. The Courts, therefore, faced a problem and in some cases, gave their decision solely based on the basis of the provisions given in the Act while others gave decisions based on the object of the Act i. Though the paper is based on Indian experience, it is relevant for a number of developing economies across the globe. Labour Investigation Committee Main Report , p.
Even when thekedar or jamadar recruits or employs workmen for the employer by sending word through the 'old hands' the workmen so recruited or employed would he 'inter-state migrant workmen,' because the 'old hands' would be really acting as agents of the thekedar or jamadar for the purpose of recruiting or employing workmen. Union Territory of Chandigarh was one such case that dealt with determining whether the contract was bona fide or mala fide. Therefore in order to ease the process of adjudication of industrial disputes that were related primarily to contract labour, the Courts required an Act which completely dealt with the regulations of contract labour. The foodstuffs and other items to be served in the canteen shall be in conformity with the normal habits of the contract labor. Can the employees engaged by the contractor make a demand upon the employer to take them on the muster roll? The concept of contract labour can be understood from the following example, suppose A is an industrialist and he wants to build a factory and for this he hires a person B to get the job done. The Act is silent with regard to the absorption of contract labour by the principal employer after the issuance of the prohibition notification issued under Section 10 of the Act. This was challenged on several grounds stating that since the workers are only temporary, expenditure of such an extent on them is redundant and therefore should not be mandated.
Perhaps the reason for this perplexity is the Act itself because it lacks provisions regarding the same. On the above issue there has been a varying opinion of the courts. Maintenance and Preservation of Register of Contractor. The Act does not apply to the establishments where the work done is of intermittent or seasonal nature S. Information is provided on Equal Remuneration Act. The Supreme Court held insofar as no provision had been made in the scheme for the recovery by the employer of the contribution to be made by him on behalf of contractor's employees, the amendments operated harshly and unfairly on the persons who employed contract labour, and it resulted in discrimination against those who were employed as direct labour. The principle of interpretation of statutes, ex visceribus actus states that for correct interpretation of a certain statute, the statute must be read as a whole and not on the basis of provisions which are severed from it.
On the hand, in the state sphere, the labour department of the state government concerned does this work. However, earning profit by exploiting labour cannot be permitted in a democratic country and welfare state that ideally functions for the people. It is thus a legislation for the welfare of labourers whose conditions of service are not at all satisfactory. Grant of certificate of registration. Further, upon discovery of any error or omissions, we may delete, add to, or amend information on this website without notice.
It should, therefore, be included in the Act itself to apply universally to all contract labour. The Act was made applicable to all establishments operating all over the country and both the Central and state governments were authorised to enforce it in their respective jurisdictions. Video Transcript Welcome, this is Lloyd Lofton, and today we're just going to briefly comment on the Contract Labor Act of 1970. Peoples Union for Democratic Rights v. The work site or place may or may not belong to the principal employer, but that will not stand in the way of application of the Act or in holding that a particular place or work site where industry, trade, business, manufacture or occupation is carried on is not an establishment. This principle was clearly in the interests of those who worked in the same way as the regular employees but were exploited by the unfair practices of the industrialists. In matters relating to the abolition of contract labour system, the Board normally constitutes a 3 member Tripartite Committee from amongst members of the Central Advisory Contract Labour Board representing the employers and workers and a Government official as Member Convener to study the issue in detail.
Provisions of the Minimum Wages Act, 1948 were made applicable to contract labour in scheduled employments. Second, there still continue to be a large number of establishments who employ contract labour but are yet not registered under the Act. When the contract is bona fide, the Government can abolish the contract labour under Section 10 of the Act. A similar kind of recommendation has also been made by one of the recent studies conducted by V. Both the socio-economic context in which the contractual arrangements are in vogue and the attendant benefits to the employers and to the contractors as compared with its negative implications for workers depend largely on national situations including the legal framework, the characteristics of the industry, the strength of unions, etc. Contract Labour differs from Direct Labour in terms of employment relationship with the establishment and method of wage payment. But it did not end the case right there.
Their liability to take out a licence cannot, therefore, arise. Details of Minimum Wages Act, 1947 are given. This visibly shows the amount of instability that persists among contract labourers as they do not have any job security and are exploited in terms of wages and working conditions. Canteens 1 In every establishment to which the Act applies and wherein work regarding the employment of contract labor is likely to continue for six months and wherein contract labor numbering one hundred or more are ordinarily employed, an adequate canteen shall be provided by the contractor for the use of such contract labor within sixty days of the date of coming into force of the rules in the case of the existing establishments and within 60 days of the commencement of the employment of contract labor in the case of new establishments. Precedents Significant judgments of the Supreme Court in the matter are: 1. This has become a matter of concern, that a vast majority of workers, are thrown out of the coverage of the legislative protection under the Act, by adopting the abovementioned devices, and thus work in very poor conditions of work, for excessively long hours at abysmally low wages, as compared to workers doing similar work with a permanent status. Contract Labour- A Hand Book by A R Naidu 3.
However, the drawbacks and loopholes in the Act leave much to be desired. Although there are trade unions to secure the rights and welfare of the workers, they primarily cater to the vested interests of the trade union leaders. Prohibition of employment of contract labour. Appointment of licensing officers 12. Among different kinds of employment that have been created in various economies to circumvent labour laws, contract labour is becoming one of the prominent forms.
In Rourkela Shramik Sangh v. Often, the mediation between the principal employer and the workers is not by one contractor alone, but a chain of sub-contractors and sub-sub-contractors. Industrial Tribunal cannot issue directions to an establishment to abolish contract labour w. As stated previously, although the Act aims at the regulation of contract labor, its end goal is the abolition of the same. This paper aims at analyzing an interpreting the provisions of the Act, in light of judicial pronouncements given by the High Courts and Supreme Court at different points of time. However, despite these umpteen steps taken, there continues to be a blatant violation of the provisions of the Act.