Contract Labor Rules: What Activities and Time Limits Apply Under the 1970 Act?

Contract Labor Engagement under the Contract Labor (Regulation and Abolition) Act, 1970

In what kind of activities can we engage contract labor under the Contract Labor (Regulation and Abolition) Act, 1970, and for how long can we engage them?

Regards,
P.J. Singh

According to the Contract Labour Regulation and Abolition Act (CLRA), certain jobs are restricted for the engagement of contract laborers. In these specific roles, we are not allowed to hire contract workers. However, for all other job positions not covered by the CLRA restrictions, we are permitted to engage contract workers.

Thank you.

Dear Mr. Singh,

You can engage contract workers for non-core and non-key positions within your organization, essentially for non-perennial activities. The CLRA does not impose a limit on the number of contract workers that can be engaged. However, it is essential to ensure compliance with all statutory requirements.

For further discussion, please feel free to contact me at the number provided.

Regards

You can engage contract workers in non-perennial activities, such as gardening, loading, unloading, and material handling. However, states regulate these activities differently.

Vis-à-vis the number of employees to be engaged through a contractor, there is no ceiling. However, the courts have the power to lift the veil and determine whether the contract between the principal employer and contractor is a sham. They can then hold the employee as a direct employee of the principal employer.