Contract Labour Amendment Bill 2017: How Will It Change the Definition of Contract Workers?

Dear All,

The Government of India has made the preliminary draft of the Contract Labour (R&A) Act 1970 Amendment Bill 2017, which is attached herewith. Your views, please, on the following:

Proposed Section 2 Sub-section (1) in Clause (b)

Explanation - For removal of doubt, it is clarified that where, in or in connection with the work of an establishment, a workman who is regularly employed in an establishment of a contractor is hired in or in connection with such work of the first said establishment by or through the contractor, with or without the knowledge of the principal employer, shall not be deemed as "contract labour" for the purposes of this clause.

As per the above, if any contractor is engaging manpower on a regular basis, those workers will not be called contract labour under the above amendment. Contractors can obtain a one-time license valid for 3 years. Providing facilities such as a canteen and restroom to contract workers has to be the responsibility of the principal employer who had hired workers from the contractor.

The proposed amendment to the Contract Labour (R&A) Act 1970 in India aims to redefine the classification of workers engaged by contractors in establishments. Here are some key points to consider:

Implications of the Proposed Amendment
- Workers regularly employed by a contractor in connection with the work of an establishment will not be considered contract labour under the new clause.
- Contractors can secure a single license valid for 3 years, streamlining the licensing process.
- Principal employers are mandated to provide essential facilities like canteens and restrooms to contract workers, enhancing their working conditions.

Practical Steps for Compliance
1. Review the proposed amendment in detail to understand its implications on your organization.
2. Identify workers engaged by contractors on a regular basis to assess their classification under the new provision.
3. Ensure contractors obtain the necessary licenses as per the revised regulations.
4. Collaborate with contractors to provide adequate facilities for contract workers as required by law.
5. Establish clear communication channels with contractors and principal employers to ensure compliance with the amended Act.

By adhering to the revised regulations and fulfilling the obligations outlined in the proposed amendment, organizations can navigate the changes effectively and promote a compliant and conducive work environment for all workers involved.