Contract Labour Management

Contract Labour Management eases the entire function of employing contract labour through contractors in order to carry on with the contract work in the establishment. Engaging the Contract workers in any industry has become a necessity today. Contracting is one of the most powerful processes in the industry, because it can help in improving the bottom-line in this competitive world. Today, it is unavoidable for any employer not to avail services of Contract workers.

The main aim of carrying on this project work in Usha Martin Limited, Tatisilwai was to closely study the practices followed by the Principal Employer and the Contractors in order to manage contract labour in an industry, by keeping in view the statutory obligations to be followed as per The Contract Labour (Regulation and Abolition) Act, 1970 and the Contract Labour (Regulation and Abolition) Rules, 1971.


CONTRACT LABOUR IN INDIA

The Contract Labour (Regulation and Abolition) Act, 1970 is a legislation to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

• Object
The object of the Contract Labour (Regulation and Abolition) Act, 1970 is to prevent exploitation of contract labour and also to introduce better conditions of work. 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. Contract labour differs from direct labour in terms of employment relationship with the establishment and method of wage payment.

The object of the Act is to regulate and to improve the conditions of service of contract labour and not merely to abolish contract labour itself. It is an Act for the welfare of the laborers whose conditions of service are not at all satisfactory.

Contract labour, by and large, is not borne on pay-roll nor is paid directly. Contract workmen are hired, supervised and remunerated by the contractor, who, in turn, is remunerated by the establishment hiring the services of the contractor.

• Scope
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. Inferior labour status, casual nature of employment, lack of job security and poor economic conditions are the major characteristics of contract labour. While economic factors like cost effectiveness may justify system of contract labour, considerations of social justice call for its abolition or regulation.

• Applicability
The Contract Labour (Regulation and Abolition) Act, 1970 Act and the Contract Labour (Regulation and Abolition) Central Rules, 1971 came into force on 10.2.71. The Constitutional validity of the Act and the Central Rules was challenged before the Supreme Court in Gammon India Limited vs. Union of India 1974-I-LLJ-480. The Supreme Court upheld the constitutional validity of the Act & Rules and held that there is no unreasonableness in the measure. The Act & Rules were enforced w.e.f. 21.03.1974.

• The Present Status
The Act applies to every establishment/contractor in which 20 or more workmen are employed or were employed on any day in the preceding 12 months as contract labour and to every contractor who employs or who employed on any day of the preceding 12 months, 20 or more workmen. It does not apply to establishments where the work performed is of intermittent or seasonal nature. An establishment wherein work is of intermittent and seasonal nature will be covered by the Act if the work performed is more than 120 days and 60 days in a year respectively. The Act also applies to establishments of the Government and local authorities as well.

1 comment:

  1. sir i need full discription on contract labour productivity analysis..wheter it is easy 2 undstand r vast let me know

    ReplyDelete