Contents
Preface (iii)
Table of Cases (xi)
1. Introduction 1
I. The Contextual Framework 1
II. Size of Contract Labour Force 3
III. Historical Perspective and the Approaches of Committee/ 4
Commission on Contract Labour System in India
IV. Emerging Issues on Contract Labour 8
V. Views of the Stakeholders on Contract Labour 11
VI. Need to Review and Amend the Contract Labour (Regulation and Abolition) Act, 1970 13
VII. Objectives of the Study 15
VIII. Research Methodology adopted in the Study 15
IX. Structure of the Work 16
2. Concept and Classification of Contract Labour 19
I. General 19
A. Contract of Service 19
B. Contract for Service 20
C. Scope of the Present Work 21
II. Concept and Definition of Contractor, Principal Employer and Workman 21
A. Contractor 21
B. Sub-contractor 22
C. Principal Employer 22
D. Workman 23
III. Concept and Definition of Contract Labour 23
IV. Classification of Contract Labour 24
V. Sham Contract 24
A. When a contract becomes sham contract 24
B. When a contract would not be sham contract 25
C. Who may decide the the issue of sham contract 25
D. Effect of contract found to be sham or not genuine 25
VI. Supervision and Control 28
A. Determination of Supervision and Control 28
B. Test to determine employer-employee relationships 29
VII. On Whom the Onus lies 29
VIII. Case Study on Sham Contract 30
3. Status of Canteen Employees 32
A. General 32
B. Statutory Obligation 32
C. Judicial Response 33
4. Constitutional and International Perspective 47
I. Constitutional Prohibition 47
II. International Labour Organisation (ILO) on Contract Labour 48
III. Position in Foreign Countries 48
5. The Contract Labour (Regulation and Abolition) Act, 1970 35
I. Judicial Legislation on Prohibition of Contract Labour System: Prior to Enactment of CLRA Act, 1970. 54
II. Legislative Approval of Judicial Response 54
III. Legislative Framework 55
IV. Scope and Coverage 55
V. State Amendments in CLRA Act 57
VI. Inclusion of contract labour in the definition of worker/employee under various labour legislations 57
VII. Definition of Appropriate Government 59
6. Registration of Establishments and Licensing of Contractors 64
I. Registration of Establishment : A Statutory Obligation 64
II. Licensing of Contractors 66
III. Exploitation of contract labour by unlicensed contractor/sub-contractor and employer 74
IV. Exploitation of contract labour by contractor: Observations of the National Commission on Labour on field visits 75
V. Working of CLRA Act regarding registration of principal employer and licensing of contractor 76
VI. Non-Compliance of Sections 7 and 12 76
VII. Recommendation 77
7. Prohibition of Employment of Contract Labour 79
I. The Legislative Framework 79
II. Judicial approaches : Status of contract labour on abolition of contract labour system 80
III. View points of Employers and Workers on Section 10 86
IV. Recommendations of the Committees and Commissions 86
V. State Amendment Andhra Pradesh Contract Labour (Regulation & Abolition) Amendment Act, 2003 89
VI. An Evaluation 90
8. Payment to Wages, Equal Pay for Equal Work and Payment of Bonus to Contract Labour 92
I. Responsibility for Payment of Wages Provides 92
II. Equal Pay for Equal Work 94
III. Existing Provisions for Equal Pay for Equal Work to Contract Labour 95
IV. Applicability of the Principle of Equal Pay for Equal Work : Judicial View 96
V. Payment of Bonus Act 99

9. Working Conditions of Contract Labour 101
I. Hours of work, overtime, weekly holidays, leave and other conditions of service of the Contract Labour 101
II. Health, Safety and Welfare of Contract Labour 102
10. Social Security for Contract Labour 104
I. Employees’ Compensation Act, 1923 104
II. The Employees’ State Insurance Act, 1948 106
III. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 109
IV. Employees’ Pension Scheme (EPS), 1995 110
V. Employees’ Deposit Linked Insurance Scheme, 1976 110
VI. The Maternity Benefit Act, 1961 111
VII. Payment of Gratuity Act, 1972 114
11. Application of the Industrial Disputes Act to Contract Labour 117
I. General 117
II. Remedy to the Contract Labour under the Industrial Disputes Act 117
IV. Closure 121
V. Legislative Measures to be taken to Amend Chapter VA and VB 123
VI. Re-employment of Retrenched Contract Labour 125
VII. Need for Amendment 125
VIII. Court’s Power to Direct Engagement of Retrenched Employees 125
IX. Application of Section 22 of IDA Prohibiting Strikes in Public Utility Services to Contract Labour 126
12. Cess for the Welfare of Contract Labour 127
I. Proposal to levy Cess for the Welfare of Contract Labour: Insertion of New Chapter VA 127
II. Insertion of Chapter VA: Consequential amendment in the name and functions in Central/State Advisory Contract Labour cum Welfare Boards 127
III. Need to Amend 128
13. Enforcement of the Contract Labour (Regulation & Abolition) Act, 1970 92
I. Penalties and Procedure 129
II. Limitation for Prosecutions 131
III. Judicial Approach 131
IV. Inspection Staff 133
VI. Enforcement of the CLRA Act 134
VII. An Appraisal 136
14. Conclusions and Recommendations 137
ANNEXURES 169
Annexures-I: The Contract Labour (Regulation and Abolition) Act, 1970 171
Annexures-II: Contract Labour (Regulation and Abolition) Central Rules, 1971 186
Annexures-III: Andhra Pradesh Contract Labour (Regulation and Abolition) Rules, 1971 247
Annexures-IV: Jharkhand Contract Labour (Regulation and Abolition) Rules 1972 253
Annexures-V: Delhi Contract Labour (Regulation and Abolition) Rule 1972 260
Annexures-VI: Contract Labour (Regulation and Abolition) Karnataka Rules 1974 272
Annexures-VII: The Contract Labour (Regulation and Abolition) (Rajasthan Amendment) Act, 2014 298
Annexures-VIII: West Bengal Contract Labour (Regulation and Abolition) Rules, 1972 as Amended in 2010 300
Index 303