11:19 PM
Amresh
BACKGROUND
1.
Contract Labour is a significant and growing form of
employment. It is prevalent in almost all industries, in agriculture and
allied operations and in service sector. It generally refers to workers
engaged through an intermediary and is based on a triangular
relationship between the user enterprises, the contractor (including the
sub contractor) and the workers. These workers are millions in number
and generally belong to the unorganised sector. They have very little
bargaining power, have little or no social security and are often
engaged in hazardous occupations endangering their health and safety.
They are often denied minimum wages and have little or no security of
employment. On the other hand, reasons like sporadic nature of work,
difficulty in ensuring closer supervision by the employer or cost
effectiveness, flexibility in manpower deployment, concentration in core
competencies etc. justify the system of contract labour.
2.
Recognising the need for protecting the interest of
contract labour, the Contract Labour (Regulation and Abolition) Act,
1970 was brought on the Statute Book to regulate the employment of
Contract Labour in certain establishments and to provide for its
abolition in certain circumstances and for matters connected therewith.
3. The Contract Labour (Regulation and Abolition) Act, 1970 Act
and the Contract Labour (Regulation and Abolition) Central Rules, 1971
came into force on 10.2.71. The Constitutional validity of the Act and
the Central Rules was challenged before the Supreme Court in Gammon
India Limited Vs. Union of India 1974-I-LLJ-480. The Supreme Court
upheld the constitutional validity of the Act & Rules and held that
there is no unreasonableness in the measure. The Act & Rules were
enforced w.e.f. 21.03.1974.
PROVISIONS OF THE ACT & THE PRESENT STATUS
4. The
Act applies to every establishment/contractor in which 20 or more
workmen are employed or were employed on any day in 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.
Appropriate Government
5.
The jurisdiction of the Central and State Government has been
laid down by the definition of the ‘Appropriate Government” in Section
2(1)(a) of the Act, as amended in 1986. The Appropriate Government, in
respect of an establishment under the Contract Labour (Regulation and
Abolition) Act, 1970 is the same as that in the Industrial Disputes Act,
1947.
The Central and State Advisory Boards
6.
The Central Government and State Governments are required
to set up Central and State Advisory Contract Labour Boards to advise
the respective Governments on matters arising out of the administration
of the Act as are referred to them. The Boards are authorised to
constitute Committees as deemed proper.
7. The Central Advisory Board- a tripartite Body was reconstituted on 24th June 2002 and the non-official members hold office for a term of three years. The Chairman of the Board was appointed on 10th
June 2005 for a period of three years. Seventy-three meetings of the
Central Advisory Contract Labour Board (CACLB) have been held so far.
The last meeting was held on 2nd June, 2008. The re-constitution of the CACLB as well as the nomination of the Chairman is under process.
8.
The existing Central Advisory Contract Labour Board has
held four meetings during 2007-2008 under report and considered various
issues relating to abolition of contract labour system in certain
establishments. The working of the Act was also reviewed in this
meeting.
Registration
9. The
establishments covered under the Act are required to be registered as
principal employers with the appropriate authorities. Every contractor
is required to obtain a licence and not to undertake or execute any work
through contract labour, except under and in accordance with the
licence issued in that behalf by the licensing officer. The licence
granted is subject to conditions relating to hours of work, fixation of
wages and other essential amenities in respect of contract as prescribed
in the rules.
Facilities for Contract Labour
10.
The Act has laid down certain amenities to be provided by the
contractor to the contract labour for establishment of Canteens and rest
rooms; arrangements for sufficient supply of wholesome drinking water,
latrines and urinals, washing facilities and first aid facilities have
been made obligatory. In case of failure on the part of the contractor
to provide these facilities, the Principal Employer is liable to provide
the same.
Payment of Wages
11.
The contractor is required to pay wages and a duty is cast on him
to ensure disbursement of wages in the presence of the authorised
representative of the Principal Employer. In case of failure on the part
of the contractor to pay wages either in part or in full, the Principal
Employer is liable to pay the same. The contract labour who performs
same or similar kind of work as regular workmen, will be entitled to the
same wages and service conditions as regular workmen as per the
Contract Labour (Regulation and Abolition) Central Rules, 1971.
Penal Provisions
12. For
contravention of the provisions of the Act or any rules made
thereunder, the punishment is imprisonment for a maximum term upto 3
months and a fine upto a maximum of Rs.1000/-.
Other Provisions
13.
The Act makes provisions for the appointment of Inspecting staff,
for maintenance of registers and records and making of Rules for
carrying out the purpose of the Act. In the central sphere, officers of
the Central Industrial Relation Machinery (CIRM) have been appointed as
Inspectors.
Prohibition
14.
Apart from the regulatory measures provided under the Act for the
benefit of contract labour, the 'appropriate government' under
section 10(1) of the Act is authorised, after consultation with the
Central Board or State Board, as the case may be, to prohibit, by
notification in the official gazette, employment of contract labour in
any establishment in any process, operation or other work.
Sub-section (2) of Section 10 lays down sufficient
guidelines for deciding upon the abolition of contract labour in any
process, operation or other work in any establishment. The guidelines
are mandatory in nature and are: -
- Conditions of work and benefits provided to the contract labour.
- Whether the work is of a perennial nature.
- Whether the work is incidental or necessary for the work of an establishment.
- Whether the work is sufficient to employ a considerable number of whole-time workmen.
- Whether the work is being done ordinarily through regular workman in that establishment or a similar establishment.
15.
The Central Government on the recommendations of the
Central Advisory Contract Labour Board, have prohibited employment of
contract labour in various operations/ category of jobs in various
establishments. So far 76 notifications have been issued since inception
of the Act.
Exemption
16.
The 'appropriate government' is empowered to grant
exemption to any establishment or class of establishment or any class of
contractors from applicability of the provisions of the Act or the
rules made thereunder on such conditions and restrictions as may be
prescribed. Fifteen notifications granting
exemption to
establishments in exercise of this power in the Central sphere have been
issued.
Enforcement
17. In
the Central sphere, the Central Industrial Relations Machinery (CIRM)
has been entrusted with the responsibility of enforcing the provisions
of the Act and the rules made thereunder, through Inspectors, Licensing
Officers, Registering Officers and Appellate Authorities appointed under
the Act.
18.
Regular inspections are being conducted by the
Field Officers of the CIRM and prosecutions are launched against the
establishments, whenever violations of the Act/Rules/notifications
prohibiting employment of contract labour are detected. In order to
ensure compliance with the labour laws from time to time,
instructions/directions have been issued to the field officers of CIRM
and State Government for proper implementation of the Act.
19.
A number of complaints alleging violation of
contract labour Act especially the notifications prohibiting the
employment of contract labour are being received. These complaints are
being investigated and remedial action taken in accordance with the
provisions of the law by launching prosecutions if considered necessary.
References are received for regularisation of the contract labour or
abolition of the contract labour system on the ground of perennial
nature of work/ ordinarily done through regular workmen etc. Writ
Petitions are also being filed by Union/Workers seeking absorption where
the contract labour system has been abolished or pleading that the
contract is sham. The requests for abolition of contract labour system
are examined in consultation with the Central Advisory Contract Labour
Board and notifications abolishing contract labour system in various
establishments in different jobs have been issued. So far as the
regularisation of the workers is concerned, no such provision, either
express or implied, exists in the Act. This has also been affirmed by
the Constitution Bench of the Supreme Court in the matter of Steel
Authority of India Limited Versus Water Front Worker’s Union on 30th August, 2001.
20.
A statement indicating the number of inspections
carried out, prosecutions launched, licences issued, establishments
registered, and number of cases received during the last three years
under rules 25(2)(v)(a)&(b) of the Contract Labour (R&A) Central
Rules, 1971 relating to payment of wages is annexed (Annexure-I).
EMERGING ISSUES/PROBLEMS
21.
In the context of globalisation, privatisation and
liberalisation, in March 2000 a GOM was constituted to examine the
proposal of the Ministry to suitably amend the provisions of the Act
with a view to facilitating outsourcing of activities to specialized
firms having professional experience and expertise in the relevant area
and at the same time to provide for a safety net to contract labour in
such outsourced activities. Such a measure, it was felt, would generate
employment growth. The GOM held a series of meetings in the years 2000,
2001 and 2003. After in-depth deliberations on the issues involved it
was agreed that certain activities which form support services of an
establishment be excluded from the application of Section 10 of the
existing Act, which provides for prohibition of employment of contract
labour in certain circumstances. However, the same could not be
finalized.
22.
While the trade unions have demanded that the Act
should be amended to provide for automatic absorption of contract labour
in the event of prohibition of employment of contract labour, the
employers organizations are vehemently opposed to it. According to them
such a step would lead to capital-intensive measures like mechanization,
automization, etc. and fall in employment. Their view is that the
employers should be given flexibility to determine the composition of
the workforce for the industry to survive in the competitive
environment. Further, according to them, contract labour should not be
abolished in non-core activities of an establishment and should be
allowed to be parcelled out to specialized agencies, which have grown
rapidly, for better time management, better operational efficiency and
high percentage of consumer satisfaction.
23.
Some of the State Governments, in tune with the
changing times, have proposed measures to liberalise the Act to spur the
growth of industry, as for example, grant of exemption to Special
Economic Zones and Export Oriented Units from the applicability of the
Act to boost exports. The Government of Andhra Pradesh have amended the
Contract Labour Act with a view to prohibiting employment of contract
labour in the core activities of an establishment and to allow
engagement of contract labour in none-core activities of an
establishment such as watch and ward, sanitation, cleaning works, etc.
The Government of Goa has introduced a bill in the legislature to
abolish contract labour in core activities of an establishment.
ISSUE FOR CONSIDERATION
24.
In view of the diametrically opposite views held by
the trade unions and the employers’ organizations, on the issue of
absorption, and the present thinking of some State Governments, a view
needs to be taken on amending the Act to facilitate outsourcing or
prohibit employment of contract labour in core activities and to mandate
automatic absorption of existing contract labour.
Posted in: 
0 comments:
Post a Comment