Dear Team,
The following is my understanding on CL (R&A) Act, 1970.
First of all, we have to go through the definitions and applicability of a particular act before we enter into any kind of discussion. In line with that I would like to highlight the definitions of 'Contract Labour' and 'Contractor' under the CLRA Act, 1970.
Contract Labour: A workman shall be deemed to be employed as "contract labour" 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.
Contractor: A person who undertakes to produce a given result for the establishment, other than mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor.
As for as applicability of the act is concerned, sub-section (5) of section 1 of CLRA Act, 1970 is reproduced below: -
5 (a) It shall not apply to establishments in which work only of an intermittent or casual nature is performed.
(b) If a question arises whether work performed in an establishment is of an intermittent or casual nature, the appropriate
government shall decide that question after consultation with the Central Board or, as the case may be, a State Board, and its
decision shall be final.
Explanation: For the purpose of this sub-section, work performed in an establishment shall not be deemed to be of an intermittent
nature-
(i) If it was performed for more than one hundred and twenty days in the preceding twelve months, or
(ii) If it is of a seasonal character and is performed for more than sixty days in a year.
Also, the definitions which is given in The Industrial Employment (Standing Orders) Act, 1946 is also appended: -
- A ‘temporary’ workman is a workman who has been engaged for work which is of an essentially temporary nature and likely to be finished within a limited period.
- A ‘casual’ workman is a workman whose employment is of a casual nature.
Clubbing the above two acts, it is evident that any workmen who is employed for a limited period and of a temporary nature by the employer is called Temporary Employee but not a contract labour until he is hired in connection with such works which has been awarded to a contractor.
Hence, my conclusion is that a contract labour has to be employed through a contractor and any other workmen who has been hired by the employer for a job which is of temporary nature and for limited period is called a temporary workmen or casual workmen and not the contract worker.
Submitted for further discussions by other experts.
P. Vathiraj
Dy. Manager (Personnel)
ACSL- Chennai