Contract Labour (Regulation and Abolition) Act, 1970

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

Contract Labour Applicability
The Act applies to every establishment in which 20 or more workmen are employed or were employed on any day on 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.

Contract Labour Consultants - Registration and License

The establishments covered under the Act are required to be registered as principal employers with the appropriate authorities I.e. Government of Maharashtra Labour department at Commissioner of Labour office, Tardeo. Application in triplicate in Form–I shall be made to the concerned Assistant Labour Commissioner (ALC) along with the fee for registration. Registration Certificate to be amended by the principal employer for year ended on 31 December before 31st October of the succeeding year.  
Every contractor is required to obtain a license and not to undertake or execute any work through contract labour except under and in accordance with the license issued in that behalf by the licensing officer. The license granted is subject to such conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labour as laid down in the rules. Application for license
shall be made in triplicate in Form –IV to the concerned ALC along with fee and a certificate from the Principal Employer in Form –V alongwith affidavit by the principal employer as well as Contractor. Contractor must pay the security deposit at the rate of Rs. 100/- for each workman. License to be renewed by the Contractor for the year ended 31st December.

Contract Labour - Register & Other documents required under [ State rule.]
Form IX - Register of Workmen of the Contractor
Form X - Identity Employment Card
Form XI - Service Certificate
Form XII & XIII - Muster roll and Wage Register
Form XV - Individual Wage Slip.
Form XVI – Register of Deductions.
Form XVII - Register of Fines.
Form XVIII - Register of Advances.
Form XIX - Register of Overtime.
Form XX - Annual Return to be filed with ACL
Notice showing wages , Hours at work , rest interval, date of payment, etc. to be displayed.
The Contractor has to provide canteen facility, rest room, drinking water, toilets, washing facilities, First Aid facilities, etc.
Form XIII - Register of Workmen of the Contractor
Form XIV - Identity Employment Card
Form XI - Service Certificate
Form XVI & XVII - Muster roll and Wage Register
Form XV - Individual Wage Slip.
Form XX – Register of Deductions.
Form XXI - Register of Fines.
Form XXII - Register of Advances.
Form XXIII - Register of Overtime.

Contract Labour - Important Forms
The PE to apply to registered in Form No. I, get Certificate in Form No. II and maintain register in Form No. III
The Contractor has to obtain License depositing the required fees on Form No. IV along with the PE Certificate on Form No. V, get license in Form No. VI
Contractor & PE to notify start & completion of work in form No VIA & VIB respectively
Renewal in form No VII, Temp provision (8-11)
Register of Contractor Form No. 12
Employment card & Service certificate Form No. 14 & 15 (contractor)
Muster roll, wage admin Etc Form No. 16 to 23, Wage Slip Form No. 19
PE to file annual return by 15th Feb to D/ALC (Form No. 25). Contractor to file half yearly return by 31st Jan & Jul of year ( Form No. 24)