The  main object of Contract Labour (Regulation & Abolition) Act, 1970 is to govern the employment of contract labour in certain establishment and to provide for its abolition is certain situation and for matters connected therewith. Every Principal Employer covered are required to obtain Registration Certificate under CLRA and every Contractor covered under this Act are required to obtain Contract Licence

APPLICABLITY

The Contract Labour (Regulation and Abolition), Act, 1970 applies to:

1. Establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months, as a contractor
2. Contractor who employs or who employed 20 or more workmen on any day of the preceding 12 months (Section 1)

REGISTRATION

Registration by Principal Employer

1. Principal Employer means the owner or occupier or the person who executes ultimate control and supervision and manages the affairs of the establishment
2. Every Principal Employer is required to register his establishment under the Act and obtain the Certificate of Registration
3. For this purpose the Principal Employer shall make an application in Form I in triplicate with other relevant documents as may be prescribed in the Act, to the Registering officer , within the stipulated time (Section 7)

Registration (Licence) by the Contractor

1. Contractor in relation to the establishment means a person who undertakes to produce a given result for the establishment other than a 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
2. Every Contractor is required to obtain licence before executing any work through contract labour
3. For this purpose the an application in Form IV is required to be submitted in  triplicate,along with other relevant prescribed documents, to the Licensing Officer of the area in which the Principal Employer’s establishment is located (Section 12, Rule 21)

EFFECT OF NON-REGISTRATION

If the Principal Employer does not get registration under Section 7 and /or the contractor does not get the licence under Section 121 of the Contract Labour (R&A) Act, 1970, then the person appointed by the Contractor shall be deemed to be the direct employee of the Principal Employer

REVOCATION OF REGISTRATION

When the Registration Certificate is obtained by misrepresentation or suppression of material facts etc. after giving the Principal Employer the opportunity of being heard to the Principal Employer (Section 9)

REVOCATION OR SUSPENSION & AMENDMENT OF LICENCES

The Licenses of the Contractor shall be revoked and suspended under following circumstances:

1. Licence obtained by the Contractor by misrepresentation or suppression of the material 
2. Failure of the Contractor to comply with the conditions contravention of the Act or the Rule (Section14)

LIABILITY OF PRINCIPAL EMPLOYER

The Principal Employer must ensure the following:

1. Facilities for canteen, restrooms, sufficient supply of drinking water, latrines and urinals, washing
2. Torecover from the contractor for providing such amenities or to make deductions from amount payable (Section 20)

REPONSIBILITY OF THE CONTRACTOR FOR PAYMENT OF WAGES

The Contractor must ensure the following:

1. Pay wages on time
2. Disbursement of wages in the presence of authorized representative of the principal employer
3. Rates of wages not less than the rates as fixed or prevailing in such employment as fixed by the agreement

REGISTERS

Principal Employer

• Maintenance of register of contractors in respect of every establishment in Form XII(Rule 74)

Contractor

• Maintain register of workers for each registered establishment in Form XIII
• Issue an Employment Card to each worker in Form XIV
• Issue Service Certificate to every workman on his termination in Form XV (Rules 75, 76 & 77)

RETURNS

For Principal Employer

• Annual Return Form XXV in duplicate is required to be submitted before 15th Feb following the end of the concerned year

For Contractor

• Contractor- Half yearly return in Form XXIV in duplicate is required to be submitted within 30 days (Rule 82)

MUSTER ROLL, WAGES REGISTER, DEDUCTION REGISTER AND OVERTIME REGISTER TO BE MAINTAINED/ DISPLAYED BY CONTRACTOR

1. Form-XVI MusterRoll
2. MaintainMuster Roll and a Register of Wages in Form XVI & Form XVII respectively when combined
3. Registeror wage-cum-Muster Roll in Form XVII where the wage period is a fortnight or less
4. Maintain a Register of Deductions for damage or loss, Register of Fines and Register of Advances in Form XX, Form XXI & Form XXII respectively
5. Maintain a Register of Overtime in Form XXIII
6. To issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement of
7. Obtain the signature or thumb impression of the worker concerned against the entries relating to him on the Register of wages or Muster Roll-Cum-Wages Register
8. When covered by Payment of Wages Act, register and records to be maintained under the rules
9. Muster Roll, Register of wages, Register of Deductions, Register of Overtime, Register of Fines, Register of Advances, Wage Slip (Rule 79)
10. To display an abstract of the Act and Rules in English & Hindi and in the language spoken by the Majority of workers in such forms as may be approved by appropriate authority (Rule 80)
11. To display notices showing rates of wages, hours of work, wage period, dates of payment, names and address of the inspector and to send copy to the inspector and any change for with (Rule 81)

PENALTIES

1. OBSTRUCTIONS (SECTION22)
   • For Obstructing theInspector
   • Failingto produce registers etc

Penalty- Imprisonment of 3 months or fine upto Rs. 500 or both

2. VIOLATION (SECTION 23)
   • For violating the provisions of Act or the Rules Penalty-Imprisonment of 3 months or fie upto  1000
   • On continuing contravention Penalty- Additional fine upto Rs. 100 per day

SCOPE OF WORK

• Obtaining shops & establishments registration & License.
• Renewal of License as per schedule date.
• Representing with Labour Department authorities on the behalf of the company on case-to-case basis with prior approval of the signing authority.
• Preparing and submitting the half yearly and annual returns.
• To maintain records and all registers in relation to the respective Act.
• Verifying proper compliances of branches.
• To keep abreast and update the organization about the recent changes of the Act.
• To act as a proper communication link between the organization and statutory authorities.