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Contract Labour (Regulation and Abolition) Act,1970

Act No : 37


Section : Definitions.

2. Definitions.- (1) In this Act, unless the context otherwise requires,-- 1*[(a) "appropriate Government" means,-- (i) in relation to an establishment in respect of which the appropriate Government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government; (ii) in relation to any other establishment, the Government of the State in which that other establishment is situate;] (b) a workman shall be deemed to be employed as "contract labour" in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer; (c) "contractor", in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods of articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub- contractor; (d) "controlled industry" means any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest; --------------------------------------------------------------------- 1. Subs. by Act 14 of 1986, s. 2 (w.e.f. 28.1.1986). 503 (e) "establishment" means-- (i) any office or department of the Government or a local authority, or (ii) any place where any industry, trade, business, manufacture or occupation is carried on; (f) "prescribed" means prescribed by rules made under this Act; (g) "principal employer" menas-- (i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf, (ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 1948) the person so named, (iii) in a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named, (iv) in any other establishment, any person responsible for the supervision and control of the establishment. Explanation.--For the purpose of sub-clause (iii) of this clause, the expressions "mine", "owner" and "agent" shall have the meanings respectively assigned to them in clause (j), clause (l) and clause (c) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952); (h) "wages" shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936); (i) "workman" means any person employed in or in connection with the work of any establishment to do any skilled, semiskilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person-- (A) who is employed mainly in a managerial or administrative capacity; or (B) who, being employed in a superviory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or 504 (C) who is an out-worker, that is to say, a person to whom any articles or materials are given out by or on behalf of the Principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the principal employer and the process is to be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer. (2) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir shall, in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State.


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advchennai wrote on 21 May 2009

Held, the fact the work of the contractor is away from the establishment does not make it out of "work of any establishment" in S. 2(1)(c)-Construction of building for the principal employer at a new place is "work of that establishment"-Expression ."work of an establishment "used in the definition of workmen" or "Contractor" is not the same as the expression "other work in any establishment" in S. 10-Workman need not be doing same as or incidental to that' of principal employer. Gammon India Ltd. v. Union of India, 1974 SCC (L & S) 252.


advchennai wrote on 21 May 2009

The word 'Occupier' has been defined in Section 2(n) of the Factories Act; 1948 as under: "Occupier" of a factory means the person who has ultimate control over the affairs of the factory, and where the said affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier of the factory.


advchennai wrote on 21 May 2009

S.2(1)(e)(ii). A ship anchored or berthed in a port would be a work site and the workmen employed for loading and unloading of the cargo, security, repairs to the ship would be all in connection with the business or trade. The Docks in which a ship may be berthed is controlled by the Port Authorities and the ship owners' agents would be unable to provide facilities for canteens, rest rooms etc. But these defects cannot be ground for totally excluding a ship in a port from the ambit of "establishment". Lionel Edwards Ltd. v, Labour Enforcement Officer, (1978) 53 FJR 116 (Cal DB).