Violation of Labour Laws for Contract Labours

V.V. Giri National Institute of Labour in their Impact Study report  has not stated that close to 55 per cent of the workforce in the organised industry is on contract basis and they are not paid industry-wise minimum wages.  However, the  study had revealed that  contract labour are being paid less wages than the wages given to the regular workers of Principal Employer even though contract labour perform same or similar kind of work. The estimated number of Contract labour of licensed contractors under Contract Labour (Regulation & Abolition) Act, 1970 is approximately 60 lacs in the country.  Out of which 36% perform same or similar kind of work as of directly appointed workmen of Principal Employer.

                As per the  Contract Labour (Regulation & Abolition) Central Rules, 1971, the wages of the contract labour shall not be less than the rates prescribed under  Minimum Wages Act, 1948 and in cases where  the contract worker perform  the same or similar kind of work as the workmen directly employed  by the principal employer of the establishment, the wage rates, holidays , hours of work and other conditions of service  shall be the same as applicable to the workmen directly employed by the principal employer doing the same or similar kind of work.

                The workers doing same or similar work and not getting same wages can raise the issue before the appropriate “Government”.  The Central Government is the appropriate Government in respect of the establishments falling in Central sphere.    The private companies in non Government sector and un- organized sector come in State sphere.    In the Central sphere, the complaints/grievances are received in the field offices of Chief Labour Commissioner (Central) Organization.

                The details of prosecution launched   and  employers/persons convicted  during last three years under  the Contract Labour (Regulation & Abolition) Act, 1970, Minimum Wages Act, 1948 and Building And Other Construction Workers’ Act, 1996is at Annexure-I.

                Apart from above, the Central Government has prohibited employment of contract labour in various establishments in Central sphere through 84 Notifications issued from time to time under the Contract Labour (Regulation & Abolition) Act, 1970.

                The matter regarding regularizing the contract workers as regular workers is not feasible as it will pave the way for back door entries in regular jobs.

Annexure-I

CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970

2.             MINIMUM WAGES ACT, 1948

3. BUILDING AND OTHER CONSTURCTION WORKERS ACT, 1996 UNDER SECTION (47, 48 & 49)

        * Provisional

No of  persons convicted