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Vishal (HR)     24 March 2010

Contract Labour Act - Require your views

If any contractor engaging his labours through contract, who are working with him since last 4 to 5 years and which is continuation in nature. Is there any obligation for any contractor or ultimately principal employer to designate these labours as 'permanent' or to provide all the benefits as the permanent labours getting?

If any worker is continuously working with any contractor for more than 180 days, is the contractor bound to make him as 'Confirm' or 'Permanent'?

Please clear this...




 7 Replies

Asha Pole (Legal)     24 March 2010

There is no such rule , contract labourer will be considered as a contract employee as exclusively mentioned in the contract. However if there is any clause about the contract employee being obsorbed on company's payroll then the subject would be different.And at the same time, make sure to renew your contract on it's expiry on timely basis to avoid any audit hassles 

Sarjooram Sharma (Assistant Labour commissioner)     25 March 2010

I am agree with Asha Pole. There is no question of permanent or confirmation in case of contract labour. However if the principal employer wants to absorb some of the contract labourers in is own roll, he can do so.

1 Like

Vishal (HR)     25 March 2010



The same labour are being used continuously for the last 4 to 5 years for the same principal employer's work through the same contractor, without having any stipulated date of cessation of contract.  Even then our law says - it is not permanent and perennial nature of job and they are not entitled to be the employees of principal employer.  Is it not mockery of law and infringement of  fundamental rights of the citizen and violation of directive principles.  If the poor contract workers succeed before the contract labour advisory board that the job is permanent and perennial in nature, the courts say that the very contract labour need not be enrolled as permanent employees.  The principal employer can, in bulk, terminate them.

The job is permanent and perennial and ideally, contract labour system should not be there.  On the other hand, the contract is also a sham to deprive the poor contract labour of permanent employement with the principal employer.  As our law is giving sanction to these illegalities, let us say that the principal employer and contractor are correct in law to get the work done by contract system as long as they desire. 

1 Like

radha krishna (vp-hr)     31 March 2010

Pl see sec 10 of CL(R&A) Act 1970 and ensure that the contract labour are not engaged in the areas works which fall under this provision. It has to be decided based on the nature of activity in which you establishment is involved. Also each state and also central Government has specifically issued GOs prohibiting engagement fo contract labour in certain areas. If these are not taken care, the Government Authorities may direct you not to engage contract labour in these areas and amy prosecute for engaging CLs in prohibited areas.

If any contract labour is working continuously for 4 to 5 years and is engaged in the the activities which fall under sec 10 of the act, it is the state government to decide and pass order on the contravention of this provision.

However, there is no regulation or obligation on the part of the Principal Employer that the CL labour so engaged in the prohibited employment to be taken in the roles of the principal employer. There is no legal obligation on the part of principal employer to absorb any one who has completed 180 days of service or so.

Also you have to ensure that:

1. There is no sham contract. There must be a legal contractor who is having separate entity ie., a Registration under shop act, PF & ESI code etc., and it is always better we engage a contractor who works for more than one establishment so that he can manage to rotate the CL frequently from one co to another co.

2. Equal work to equal pay to be always kept in mind. For eg..a security guard in Principal Employer's rolls and a security guard in Contractor rolls performing same and similar duties at same wrokspor. etc.,

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Vijayarajan (Executive Director)     01 April 2010

Under the contract labour (R&P) act, ther is provision for abolition of contract if the contract is used for an employment which is of regular nature. the emplyee can resort to the provisions.

Sarjooram Sharma (Assistant Labour commissioner)     01 April 2010

The work, which is the main work of industry, or related to main work of industry or regular and perennial in nature can be abolished for using contract labour by a notification to be issued by the appropriate government. all these tyes of work are not banned for employing contract labour untill they are ablished by a notification by the appropriate government.

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