Dear Member,
In my opinion, if we are allowed to employ contract labor, then we must adhere to the provisions as contained in the CL(R&A) Act, 1970, and the applicable central or state rules, whichever is applicable in our case. This is called a regulatory system. Where we are not allowed to engage contract labor in prohibited employments as notified by the appropriate government, this is called the abolition of contract labor. Section 10 may be read as follows:
Sec. 10. Prohibition of Employment of Contract Labour
Notwithstanding anything contained in this Act, the appropriate Government may, after consultation with the Central Board or, as the case may be, a State Board, prohibit, by notification in the Official Gazette, the employment of contract labor in any process, operation, or other work in any establishment.
This means we are not allowed to engage contract labor in any process, operation, or other work in any establishment that has been prohibited by the appropriate Government by notification in the official gazette.
Before addressing your last query, we should first go through the definition of contract labor and workman as given under this Act of 1970. These may be read as follows:
Sec. 2(b) 'Contract Labour': A workman shall be deemed to be employed as "contract labor" in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer.
Sec. 2(i) "Workman" means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled, or unskilled manual, supervisory, technical, or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person:
(A) who is employed mainly in a managerial or administrative capacity; or
(B) who, being employed in a supervisory capacity, draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or
(C) who is an outworker, that is to say, a person to whom any articles and materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted, or otherwise processed for sale for the purposes of the trade or business of the principal employer, and the process is to be carried out either in the home of the outworker or in some other premises, not being premises under the control and management of the principal employer.
Now, going through the definition of the workman, you can see who is considered contract labor and who the persons are that are not to be considered as contract labor.
Query attempted as per your request.
Regards,
R.N. Khola