Contract Labour (Regulation and Abolition) Act

The object of the contract Labour (Regulation and Abolition)Act, 1970, is to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected thereto.
Applicability of the ACT
This Act applies to every establishment in which twenty or more workmen are employed or were employed on any day of the preceding 12 months as Contract Labour and to every contractor who employs or employed twenty or more workmen on any day of the preceding 12 months. The Act is not applicable to establishment in which work is only of an intermittent or casual nature is performed.(section-1(iv))
Enforcement Machinery
The Labour Commissioner, Haryana is appointed as Registering Officer & Licensing Officer for the purpose of issuing registration certificate/licence.The Officers of the labour wing and Labour Inspectors have been notified as 'Inspector' under the Act within their respective jurisdiction in the State.The Secretary, Labour and Employment Departments has been nominated as "APPELATE OFFICER".(Section-6,11&15)
What should a Factory owner or contractor know about the Act?
Registration of Establishment employing Contract Labour.
The Principal Employer (owner, occupier, ultimate controller or Manager) shall submit an  application in FORM-I(CL) in triplicate for Registration of Establishment to the Registering Officer, (Contract Labour) IR-II Branch, Labour Department, 30 bays Building, Sector-17, Chandigarh within 15 days after coming into existence of establishment.(Section-6)
An application shall be accompanied by treasury receipt in token of the payment of prescribed fee for registration of the establishment.(Section-7)
The fee structure for the number of workmen proposed to be employed on any one day on contract by the Principal Employer is as under:-
Fee for Registration of Establishment

is 20 or less

Exceeds 20 but less than 50 Rs.50
Exceeds 50 but less than 100 Rs.100
Exceeds 100 but less than 200 Rs.200
Exceeds 200 but less than 400 Rs.400
Exceeds 400 but less than 500 Rs.500
The fee shall be deposited in Treasury Head No-0230- Labour & Employment-106- Registration and Renewal fee under contract Labour (Regulations and Abolition) Act, 1970.
The Registering officer, if satisfied, shall register the establishment and issue a certificate of Registration in Form-2 (CL) containing name & address of the establishment the maximum number of workmen employed as contract labour, type of business or trade etc.(Section-8)
Licence Fee For Contractor
Every contractor is required to submit an application in triplicate in Form-4(CL)form download to the Licensing Officer.(Section-12)
Every application for licence shall be accompanied by a certificate of the Principal Employer in Form-5(CL)form download to the effect that the applicant has been employed by him as a contractor in relation to his establishment and that he undertakes to be bound by all the provisions of the Act and the rules made thereunder.(Section-12)
An application shall also be accompanied by treasury receipt in token of the payment of prescribed fee as well as the security amount of Rs.30 per worker for grant of license to the contractor.(Section-12)
The fee structure for the Number of workmen proposed to be employed on any one day on contract by the contractor is as under:-

Sr. No.

No. of Workers Licence Fee Security Amount
1. is 20 or less Rs.20 The amount of security shall be calculated at the rate of Rs.30/- for each of the workmen to be employed as contract labour. If the contractor is a Co-op society,the amount deposited as security shall be @ of Rs.5/- for each of the workmen.
2. Exceeds 20 but less than 50/- Rs.50  
3. Exceeds 50 but less than 100 Rs.100  
4. Exceeds 100 but less than 200 Rs.200  
5. Exceeds 200 but less than 400 Rs.400  
6. Exceeds 400 but less than 500 Rs.500  
The license fee and renewal fee shall be deposited in treasury under head "0230-Labour & Employment-106- Registration and Renewal fee under Contract Labour(Regulation and Abolition) Act-1970.(Section-13)
The Security amount shall be deposited in treasury under head No.8443-Civil Deposits-104- Deposits under various Central & State Acts-deposit under the Contract Labour (Regulation & Abolition) Act 1970.(Rule-24 )
Every licence granted or renewed shall remain in force upto the 31st December of the year for which the licence is granted or renewed.(Rule-27)
The Contractor/Applicant should not be minor or of unsound mind or an undischarged insolvent moral turpitude.(Rule-22)
The Licensing Officer , if satisfied about the eligibility of the applicant, grant a licence in Form-6 otherwise he shall after affording a reasonable opportunity to the applicant to be heard make an order rejecting the application and communicate the same to the applicant.(Section-13,Rule-23)
The licence shall be non-transferable.(Rule-25)
The number of workmen should not exceed the maximum number specified in the licence.(Rule-25)
The fee once paid shall not be refundable. (Rule-25)
The rates of wages payable to the workmen by the contractor shall not be less than rates of minimum wages as notified by the Govt. from time to time. In case where the workmen employed by the contractor perform the same or similar kind of work as the workmen directly employed by the Principal employer of the establishment , the wages, holidays, hours of work and other conditions of service shall be the same as applicable to the workmen directly employed by the Principal employer. (Rule-25)
In this regard, if any conflict arises, the decision of the Labour Commissioner , Haryana shall be final. (Rule-25)
Renewal of Licence
Every contractor shall make an application to the Licensing Officer for renewal of licence in Form-7(CL)form download in triplicate alongwith prescribed fee stated above 30 days before it's date of expiry. (Section 13, Rule 29)

Sr. No.

No. of Workers Renewal Fee
1. is 20 or less Rs.5
2. Exceeds 20 but less than 50/- Rs.12.5
3. Exceeds 50 but less than 100 Rs.25
4. Exceeds 100 but less than 200 Rs.50
5. Exceeds 200 but less than 400 Rs.100
6. Exceeds 400 but less than 500 Rs.125
Application for renewal is not received within prescribed time penalty amounting to twenty five percent of the fee ordinarily payable for the licence shall also be payable for renewal.(Rule-26)
The Certificate of registration or a license granted or renewed has been lost, defaced or accidentally destroyed a duplicate may be granted on payment of fee of Rupees Five-only.(Rule-30)
The applicant may appeal to the Appellate Officer after refusal of registration , renewal or grant of license in the form of a memorandum signed by the applicant or his authorized agent , clearly mentioned the ground of appeal accompanied by a certified copy of the order as authority and a treasury receipt of ten rupees or postal order.(Sec.-15)
Copies of the order of the Registering Officer, Licensing Officer or the Appellate Officer may be obtained on payment of a fee of Rs.2/- for each order.(Rule-39)
If there is any change or amendment in the particulars specified in the certificate of Registration, the Principal Employer of the establishment shall intimate to the Registering Officer and submit application and prescribed fee within 30 days from the date when such change takes place, the particulars of and the reasons for such change and stating the nature of amendment and reasons thereof.(Sec.-14 Rule-28)
The Principal Employer shall maintain a register of contract in Form-8(CL).(Rule-73)
The Principal Employer shall exhibit on notice board the abstract in English and in Hindi and in the local language understood by the majority of workers showing the rates of wages, hours of work, wage period, dates of payment of wages, names & address of the Inspector of his jurisdiction at a conspicuous place. (Rule 78)
A copy of the abstract should be send to the area Inspector. (Rule 80)
The Principal Employer shall be liable to provide welfare and other amenities for contract Labour, if the contractor fails to provide the same and recover the expenses involved from the contractor. (Section 20 & 21)
The Principal Employer has to send an annual return in Form-21(CL) in duplicate so as to reach the authorities by 15th February following the close of the year. (Rule 81(2))
Obligations of a Contractor No female contract Labour shall be employed by any contractor before 6 A.M. or after 7 P.M. (Rule 25)
The contractor is required to provide suitable canteen consisting dinning hall, kitchen, store room and pantry etc., sufficiently lighted and ventilated rest rooms, creche, latrines ,urinals, whole some drinking water, washing facility and first aid boxes for the use of contract Labour. (Rule 40,41,42 Section 16 to 19)
Every contractor to maintain in respect of each registered establishment where he employs Contract Labour a register in Form 9(CL). (Rule 74)
Every contractor to issue an employment card in Form 10 (CL) to each worker and to issue a service certificate on termination of employment in Form 11(CL). (Rule 75 & 76)
Every contractor in respect of each work has to maintain a register like muster roll, register of wages, deduction, overtime, fines, advances and wages slip. (Rule 77)
Every contractor is under obligation to send half yearly return in Form 20(CL) in duplicate so as to reach the Licensing Officer not later than 30 days from the close of the half year i. e period ending June & December. (Rule 81(1))
A copy of the Licence should be displayed prominently at the premises where the contract work is being carried on . (Rule 18)

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Labour Department, Haryana, 30 Bays Building, Sector 17,Chandigarh - 160 017
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