Contract Labour(Madhu)

8/11/2019 Contract Labour(Madhu)

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LETS

START


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CONTRACT LABOURREGULATION &

ABOLITION ACT


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DEFINITIONS

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.

Should not do any main activity of the Company. Abolition - Automatic absorption of Contract Labour.

Regulation - Managing or Monitoring the Labour force


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OBJECTIVE:

To regulate the employment of contract labour in

certain establishments and to provide for its abolition

in certain circumstances.

It is to prevent exploitation of the contract labour and

also to introduce better conditions of work.


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BENEFITS OF CONTRACT LAW

The need of contract law is undisputed. It is necessaryfor the following among other reasons.

The contract labour would ensure speedy completionof the assigned work.

Comparatively cheaper with less liability onsupervision and control.

There will not be much union activities.

There is no need of permanent retention of employee.

It is best system for certain activities like construction,repairs of machines, packing, loading & unloading, etc.


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APPLICABILITY OF THE ACT

Employer

Contractor

ContractLabour

EMPLOYER

CONTRACTOR

It applies to every employer andto every contractor who

employees 20 or more number of

workmen on any day of the

preceding twelve months ascontract labour.


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CONTRACT Vs REGULAR

LABOURPARAMETERS CONTRACT LABOUR REGULAR LABOURPart time/ finite time Full Time

Relationship Has an Intermediary i.e.,

Contractor

Directly connected to the

Organization

Work Performs the Supplement

job

Performs the main

activity of the

organization

Responsible/

Reporting

To the Contractor To the employer

Supervision By the Contractor By the Employer

Facilities Provided by the Contractor Provided by the

Employer

Payment Type Time Based/ Piece Rated Regular Pay


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Documents

Contract Labour(Madhu)