Understanding Labor Laws and Record-Keeping under the Contract Labour Act

Dear Colleagues,

I have recently joined this site. We are working on a project in Rajasthan, where all the work has been assigned to our subcontractor. We have obtained a labor license for 50 workers. Now, I need to inquire whether we are required to maintain records for the Labor Office. If so, could you please advise on the type of registers or records that need to be maintained by us according to labor laws?

Please suggest.

RJ

Hi, I think you are asking about the Contract Labour Act. If yes, the first thing is that records must be maintained for our safety, not just to fulfill the requirements of the Labour office. Secondly, under the Contract Labour Act, records should depend on the registration. It means it is registered under the state government or Central government. So, government-wise rules will be applicable to both the principal employer and contractors.

Generally, the following documents should be maintained by the principal employer:
- Registration Certificate of The Contract Labour Act.
- License of the Contractor under the Contract Labour Act.
- Attendance Register (As per the specified format)
- ID card of the employees (As per the specified format)
- Salary & wages Register (as per the specified format)
- Deduction Register (as per the specified format)
- PF/ESIC/PT/MLWF details (Month-wise)
- Half-yearly & Annual Return of PF/ESIC/ etc.
- Leave details & much more......

[Most important]:
If the contractor successfully pays the Social Security payments like PF, ESIC, MLWF, etc., the Principal employer will be liable to pay all the payments along with interest charges and damage charges.

For more details, you can refer to The Contract Labour Act or reply to me.

Hi,

Contract Labour (Regulation & Abolition) Act, 1970

Objectives:
- To regulate the employment of contract labour.
- To provide for its abolition in certain cases.

Applicability - Section 1
- Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour.
- To every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.
- Does not apply to establishments where work is only of an intermittent or casual nature.
- Less than 120 days in the preceding 12 months or if it is of a seasonal character i.e. less than 60 days in a year.

Establishment Means:
- Any office or department of the Government or a local authority.
- Any place where any industry, trade, business, manufacture, or occupation is carried on.

Registration of Establishment - Section 7
- Principal employer employing 20 or more workmen through the contractor.
- Rule 17 Form I.
- Certificate of Registration in Form II.
- Change in particulars of registration to be notified within 15 days with reasons for change.
- Incomplete form – amendment to be carried within 15 days from the receipt of intimation.

Licensing of Contractors
- No contractors to undertake or execute work through CL except under and in accordance with a license issued under the Act.
- Form IV – Rules 21 to 23.
- Certificate from Principal employer-Form V.
- Conditions – hours of work, wages, and other essential amenities.

Terms and Conditions of License
- License shall be in Form VI.
- Non-transferable.
- Contract labour should not exceed, on any day, the maximum specified in the license.
- Wages, hours of work, and other conditions of service.
- Notify any change in the number of workmen or conditions of service.

Validity of License
- Every license shall remain in force up to 31st December of the year for which the license is granted or renewed.
- Application for renewal to be made in Form VII not less than 60 days before expiry.
- Deemed to have been renewed until the date when renewal is granted or refused.

Liability of Principal Employer - Sec 20
- If the contractor does not provide amenities under Sections 16 to 19 within the prescribed time, such amenities shall be provided by the principal employer.
- Expenses incurred by the principal employer in providing these amenities may be recovered from the contractor by deductions or as a debt payable.

Please let me know if you need further assistance.

What is the penalty for not maintaining the records (after registering) under the Contract Labour (Regulation & Abolition) Act 1970?