FAQ - Contract Labour (Regulation & Abolition) Act, 1970 - CLRA Act

Q: What is the Contract Labour Act?

Ans. The Contract Labour Act is a legislation passed by the Indian government in 1970 to regulate the employment of contract labour in certain establishments.

Q: Who is a contract worker?

Ans. A contract worker is an individual who is employed by a contractor and supplied to a principal employer for the performance of work in the latter's establishment.

Q: What is the role of the principal employer under the Contract Labour Act?

Ans. The principal employer is responsible for ensuring that the contractor complies with the provisions of the Contract Labour Act, such as providing adequate working conditions, ensuring timely payment of minimum wages, payment of contribution towards provident fund, and providing facilities like canteen and restrooms.

Q: What are the benefits of the Contract Labour Act for contract workers?

Ans. The Contract Labour Act provides contract workers with various benefits, such as timely payment of minimum wages, provision of basic amenities like drinking water and toilets, and entitlement to statutory benefits like provident fund, employees state insurance.

Q: Are all establishments covered under the Contract Labour Act?

Ans. No, the Contract Labour Act applies only to establishments where 20 (some States 40 or 50) or more contract workers are employed or were employed on any day of the preceding 12 months.

Q: What are the penalties for non-compliance with the Contract Labour Act?

Ans. The penalties for non-compliance with the Contract Labour Act include imprisonment for a term up to three months, or a fine up to Rs. 1,000, or both.

Q: Can contract workers form a union under the Contract Labour Act?

Ans. Yes, contract workers have the right to form and join a trade union under the Contract Labour Act. The union can represent the interests of the contract workers and negotiate with the employer on their behalf.

Q: What is the role of the Labour Department under the Contract Labour Act?

Ans. The Labour Department is responsible for enforcing the provisions of the Contract Labour Act, ensuring compliance by principal employers and contractors, and resolving disputes between contractor and contract workers.

Q: Is there any provision for the registration of principal employer and contractors under the Contract Labour Act?

Ans. Yes, the Contract Labour Act provides for the registration of principal employer and licensing of contractors who employ contract workers. The registration/licensing is done by the officer appointed by the Labour Department.

Q: Can a contract worker be employed for more than the prescribed hours of work under the Contract Labour Act?

Ans. No, a contract worker cannot be employed for more than the prescribed hours of work under the Contract Labour Act. The maximum hours of work per day are 8 hours, and the maximum hours of work per week are 48 hours.

Registers and Returns under CLRA.
Under the Contract Labour Act, there are various returns and registers that the employer or the contractor is required to maintain. These registers and returns are intended to ensure compliance with the provisions of the Act and to provide information related to contract workers.

Here are some of the important returns and registers under the Contract Labour Act:

• Register of Contractors: Every principal employer who employs contract workers is required to maintain a register of contractors. This register contains information about the name and address of the contractor, the establishment for which the contract labour is being provided, and the number of contract workers employed.
• Wage Register: The contractor is required to maintain a wage register for each establishment where contract workers are employed. This register contains information about the name and address of the contract worker, the number of days worked, the wages paid, and the deductions made.
• Muster Roll & other registers: The contractor is required to maintain a muster roll for each establishment where contract workers are employed. This roll contains information about the attendance of the contract workers, the number of hours worked, and the wages paid. The contractor is also required to maintain registers for fines, damages, loss, deductions, advances, over-time etc.
• Annual Return: Every principal employer who employs contract workers is required to submit an annual return to the registering officer. This return contains information about the number of contract workers employed during the year, the number of days worked, and the wages paid.
• Half-yearly Return: Every contractor who supplies contract workers is required to submit an half-yearly return to the licensing officer. This return contains information about the number of contract workers employed during the year, the number of days worked, and the wages paid and whether contractor has provided facilities of canteen, rest-rooms, drinking water, creche, first-aid etc., at the place of principal employer.

It is important for principal employers and contractors to maintain these registers and returns to ensure compliance with the provisions of the Contract Labour Act. Failure to maintain these records can result in penalties and legal action.