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Contract Labour Act, 1970 (India)

In: Business and Management

Submitted By fahimabdin
Words 7069
Pages 29
INTRODUCTION

Contract labour, the labour of workers whose freedom is restricted by the terms of a contractual relation and by laws that make such arrangements permissible and enforceable. The essence of the contract labourer’s obligation is his surrender for a specified period of the freedom to quit his work and his employer. Other stipulations cover such matters as repayment of the costs of transportation, housing, training, and other expenses.

The system of employing contract labour is prevalent in most industries in different occupations including skilled and semi skilled jobs. It is also prevalent in agricultural and allied operations and to some extent in the services sector. A workman is deemed to be employed as Contract Labour when he is hired in connection with the work of an establishment by or through a contractor. Contract workmen are indirect employees; persons who are hired, supervised and remunerated by a contractor who, in turn, is compensated by the establishment. Contract labour has to be employed for work which is specific and for definite duration. The system of contract labour offers tremendous opportunities for employment and allows the employers flexibility to choose what is best for them. This helps improve productivity and service competitiveness. The principal employer should however have to ensure payment of wages to contract labour as laid down by the law in force as also other basic amenities and other social security benefits

The contract workers generally belong to the unorganized sector as they lack bargaining power, have little or no social security and are often engaged in hazardous occupations which could endanger their health and safety. They often have little or no security of employment. However, factors like lack of continuity of work, difficulty in ensuring closer supervision by the employer, higher output or

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