REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

N0. 50] NEW DELHI, TUESDAY, NOVEMBER 1, 1966/KARTIKA 10, 1888

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

LOK SABHA

The following Bill was introduced in Lok Sabha

on the

1st

November, 1966: —

BILL NO. 69 OF 1966

A bill to regulate the employment of contract labour in certain establishments

and to provide for its abolition in certain circumstances and for matters

connected therewith.

BE it enacted by Parliament in the Seventeenth Year of the Republic

of India as follows :—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Contract Labour (Regulation and

Abolition) Act, 1966.

(2) It extends to the whole of India except the State of Jammu and

Kashmir.

(3) It shall come into force on such date as the Central Government

to may, by notification in the Official Gazette, appoint, and different dates

may be appointed for different provisions of this Act.

Short title,

extent, com-

mencement

and applica-

tion

(949)

160 G. of I.—1,

950

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

Definitions,

(4) It applies—

(a) to every establishment in which twenty or more workmen are

employed or were employed on any day of the preceding twelve months

as contract labour;

(b) to every contractor who employs or who employed on any day 5

of the preceding twelvemonths twenty or more workmen:

Provided that the appropriate Government may, after giving not less

than two months' notice of its intention so to do, by notification in the

Official Gazette, apply the provisions of this Act to any establishment or

contractor employing such number of workmen less than twenty as may be 10

specified in the notification.

(5) (a) It shall not apply to establishments in which work only of an

intermittent or casual nature is performed.

(b) If a question arises whether work performed in an establishment

is of an intermittent or casual nature, the decision of the appropriate 15

Government thereon shall be final.

2. In this Act, unless the context otherwise requires,—

(a) "appropriate Government" means—

(J) in relation to—

(t) any establishment pertaining to any industry carried 20

on by or under the authority of the Central Government, or

pertaining to any such controlled industry as may be speci-

fied in this behalf by the Central Government, or

(«) any establishment of any railway, Cantonment Board,

major port, mine or oil-field, or

(fit) any establishment of a banking or insurance com-

pany,

the Central Government,

(2) in relation to any other establishment, the Government

of the State in which that other establishment is situated;

(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

contractor,

with or without

the

knowledge of the principal

employer;

who undertakes to produce a given result for the establishment, other

than a mere supply of goods or articles of manufacture to such esta-

blishment, through contract labour or who supplies contract labour for

any work of the establishment and includes a sub-contractor;

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

951

53 of 1948.

35 of 1952.

4 of 1936.

(d) "controlled industry" means any industry the control 01 which

by the Union has been declared by any Central Act to be expedient in

the public interest;

(e) "establishment" means—

(i) any office or department of the Government or a local

authority, or

(it) any place where any industry, trade, business, manufacture

ur occupation is carried on;

(/) "prescribed" means prescribed by rules made under the Act;

i°

(g) "principal employer" means—

(V) 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,

(.») 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, the person so named,

(tit) 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 (m) of this clause,

the expressions "mine", "owner" and "agent" shall have the mean-

ings respectively assigned to them in clause (j), clause (/) and clause

(c) of sub-section (/) of section 2 of the Mines Act, 1952 ;

Qi) "wages" shall have the meaning assigned to it in clause (vi) of

section 2 of the Payment of Wages Act, 1936 ;

(i) "workman" means any person employed in or in connection

with the work of any establishment to do any skilled, semi-skilled

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 administra-

tive capacity; or

(B) who, being employed in a supervisory 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 ;

95²

THE GAZETTE OF INDIA EXTRAORDINARY

[PART ll

Central

Advisory

Board.

State Advi-

sory Board.

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 che trade or business of the principal employer and the 5

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.

CHAPTER II

THE ADVISORY BOARDS

I O

3. (j) The Central Government shall, as soon as may be, consti-

tute a board to be called the Central Advisory Contract Labour

Board (hereinafter referred to as the Central board) to advise the

Central Government on such matters arising out of the administra-

tion of this Act as may be referred to it and to carry out other func- *5

f ions assigned to it under this Act.

(2) The Central board shall consist of—

(a) a Chairman to be appointed by the Central Government;

(b) the Chief Labour Commissioner (Central), exoffido;

(c) such number of members, not exceeding seventeen, as the 20

Central Government may nominate to represent that Government, the

Railways, the coal industry, the mining industry, the contractors, the

workmen and any other interests which, in the opinion of the Centra*

Government, ought to be represented on the Central Board.

(3) The number of persons to be appointed as members from each 25

of the categories specified in sub-section (2), the term of office and other

conditions of service of, the procedure to be followed in the discharge of their

functions by, and the manner of filling vacancies among, the members of

the Central Board shall be such as may be prescribed.

4. (/) The State Government may constitute a board to be called 30

the State Advisory Contract Labour Board (hereinafter referred to as the

State Board) to advise the State Government on such matters arising out of

the administration of this Act as may be referred to it [and to carry out

other functions assigned to it under this Act.

(2) The State board shall consist of—

(a) a Chairman to be appointed by the State Government;

(b) the Labour Commissioner exofficio, or in his absence

any other officer nominated by the State Government in that behalf;

SEC. 2 ]

THE GAZETTE OF INDIA EXTRAORDINARY

953

Slate Government may nominate to represent that Government, the

industry, the contractors, the workmen and any other interests which,

in the opinion of the State Government, ought to be represented on the

State board.

(.?) The number of persons to be appointed as members from each ol

the categories specified in sub-section (2), the

term of office and other

conditions of service of, the procedure to be followed in the discharge of

their functions by, and the manner of filling vacancies among, the members

10 of the State board shall be such as may be prescribed.

5. (/) The Central board or the State board, as the case may

be, may constitute such committees and for such purpose or purposes

as it may think fit.

(2) The committee constituted under sub-section (J) shall meet at

15 such times and places and shall observe such rules of procedure in regard to

the transaction of business at its meetings as may be prescribed:

(5) The members of a committee shall be paid such fees and

allowances for attending its meetings as may be prescribed.

Provided that no fees shall be payable to a member who is an officer of

20 Government or of any corporation established by any law for the time

being in force.

CHAPTER III

REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LABOUR

6. The appropriate Government may, by an order notified in the

25 Official Gazette —

(a) appoint such persons, being Gazetted Officers of Govern-

ment, as it thinks fit to be registering officers for the purpose of

this Chapter; and

(6) den the limits within which a registering officer shall ex-

ercise the powers conferred on him by or under this Act.

7. (j) Every principal employer of an establishment to which this

Act applies shall, within such period as the appropriate Government may,'

by notification in the Official Gazette, fix in this behalf with respect to

establishments generally or with respect to any class of them, make an

35 application to the registering officer in the prescribed manner for registra-

tion of the establishment:

Provided that the registering officer may entertain any such application

for registration after expiry of the period fixed in this behalf, if the register-

ing officer is satisfied that the applicant was prevented by sufficient cause

40 from making the application in time.

Power to

constitute

committees.

Appoint-

ment of regi

stering

officers.

Registration

of certain es-

tablishments.

954

THE GAZETTE OF INDIA EXTRAORDINARY

[PART n

Revocation

of registra-

tion in

certain cases.

Effect of non-

registration.

Prohibition

employ-

ment of

contract

Ubour.

(2) If the -application for registration is complete in all respects, the

registering officer shall register the establishment and issue to the principal

employer of the establishment a certificate of registration containing such

particulars as may be prescribed.

8. If the registering officer is satisfied, either on a reference made to 5

him in this behalf or otherwise, that the registration of any establishment

has been obtained by misrepresentation or suppression of any material

fact, or that for any other reason the registration has become useless

or ineffective and, therefore, requires to be revoked, the registering officer

may, after giving an opportunity to the principal employer of the establish-^{I 0}

ment to be heard and with the previous approval of the appropriate

Government, revoke the registration.

9. No principal employer of an establishment, to which this Act

applies, shall—

(a) in the case of an establishment required to be registered *5

under section 7, but which has not been registered within the time

fixed for the purpose under that section ;

(b) in the case of an establishment the registration in respect

of which has been revoked under section 8,

employ contract labour in the establishment after the expiry of the period 20

referred to in clause (a) or after the revocation of registration, referred to

in clause (6), as the case may be.

10. (j) Notwithstanding anything contained in this Act, the appro-

priate Government may, after consultation with the Central board or, as

the case may be, a State board, prohibit, by notification in the Offical 25

Gazette, employment of contract labour in

any process, operation or

other work in any establishment.

(2) Before issuing any notification under sub-section (z) in relation

to an establishment, the appropriate Government shall have regard to

the conditions of work and benefits provided for the contract labour in that 30

establishment and other relevant factors, such as :—

(a) whether the process, operation or other work is incidental

to, or necessary for the industry, trade, business, manufacture or

occupation that is carried on in the establishment ;

(b) whether it is of perennial nature, that is to say, it is of 35

sufficient duration having regard to the nature of industry, trade,

business, manufacture or occupation carried on in that establishment ;

that establishment or an establishment similar thereto ;

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

955

(d) whether it is sufficient

employ considerable number of

whole-time workmen.

Explanation.—If a question arises whether any process or

peration

or other work is of perennial nature, the decision of the appropriate Gov-

5 ernment thereon shall be final.

CHAPTER IV

LICENSING OF CONTRACTORS

11. The appropriate Government may, by an order notified in the

Official Gazette,—

I 0

(a) appoint such persons, being Gazetted Officers of Govern-

ment, as it thinks fit to be licensing officers for the purposes

of this Chapter; and

(b) define the limits, within which a licensing officer shall exercise

the powers conferred on licensing officers by or under this Act.

12. (1) With effect from such date as the appropriate Government

mayj by notification in the Official Gazette, appoint, no contractor to whom

this Act applies, shall undertake or execute any work through contract la-

bour except under and in accordance with a licence issued in that behalf by

the licensing officer.

(2) Subject to the provisions of this Act, a licence under sub-section (1)

may contain such conditions including, in particular, conditions as to hours

of work, fixation of minimum wages and other essential amenities in respect

of contract labour as the appropriate Government may deem fit to impose in

accordance with the rules, if any) made under section 35 and shall be issued

25 on payment of such fees and on the deposit of such sum, if any, as security

for the due performance of the conditions as may be prescribed.

13. (J) Every application for the grant of a licence under sub-section

(1) of section 12 shall be made in the prescribed form and shall contain the

particulars regarding the location of the establishment, the nature of

30 process, operation or work for which contract labour is to be employed and

such other particulars as may be prescribed.

(2) The licensing officer may make such investigation in respect of the

application received under sub-section (/) and in making any such investi-

gation the licensing officer shall follow such procedure as may be pres-

3<5 cribed.

(i) A licence granted under this Chapter shall be valid for the period

specified therein and may be renewed from time to time tor such period

and on payment of such fees and on such conditions as maybe prescribed

• Appointment

of licensing

officers.

Licencing of

contractors.

Grant of

licences.

956

THE GAZETTE OF INDIA EXTRAORDINARY

[PART 11

Revocation,

suspension

and amend-

ment of

licences.

Appeal.

Canteens.

14. (1) If the licensing officer is satisfied, either on a reference made

to him in this behalf or otherwise, that—

(a) a licence granted under section 12 has been Jobtained by misre-

presentation or suppression of any material fact, or

(b) the holder of a licence has, without reasonable cause, failed to

comply with the conditions subject to which the licence has been

granted or has contravened any of the provisions of this Actor the

rules made thereunder,

then, without prejudice to any other penalty to which the holder of the

Licence may be liable under this Act, the licensing officer may, after giving 10

'he holder of the licence an opportunity of showing cause, revoke or

suspend the licence or forfeit the sum, if any, or any portion thereof

deposited as security for the due performance of the conditions subject

to which the licence his been granted.

(2) Subject to any rules that may be made in this behalf, the licensing 15

officer may vary or amend a licence granted under section 12.

15. (i) Any person aggrieved by an order made under section 7,

section 8, section 12 or section 14 may within thirty days from the date

on which the order is communicated to him, prefer an appeal to an

appellate officer who shall be a person nominated in this behalf by the 20

appropriate Government :

Provided that the appellate officer may entertain the appeal after the

expiry of the said period of thirty days, if he is satisfied that the appellant

was prevented by sufficient cause from filing the appeal in time.

(2) On receipt of an appeal under sub-section (/), the appellate²5

officer shall, after giving the appellant an opportunity of being heard

dispose of the appeal as expeditiously as possible.

CHAPTER V

WELFARE AND HEALTH OF CONTRACT LABOUR

16. (1) The appropriate Government may make rules requiring that 30

in every establishment—

(a) to which this Act applies,

(b) wherein work requiring employment of contract labour is

likely to continue for such period as may be prescribed, and

ordinarily employed by a contractor,

one or more canteens shall be provided and maintained by the contractor

for the use of such cpntract labour.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

957

(2) Without prejudice to the generality of the foregoing power, such

rules may provide for—

(a) the date by which the canteens shall be provided ;

(b) the number of canteens that shall be provided and the

standards in respect of construction, accommodation, furniture and

other equipment of the canteens ; and

(c) the foodstuffs which may be served therein and the charges

which may be made therefor.

17. (7) In every place wherein contract labour is required to halt

10 at night in connection with the work of an establishment—

(a) to which this Act applies, and

(6) in which work requiring employment of contract labour is

likely to continue for such period as may be prescribed,

there shall be provided and maintained by the contractor for the use of

r5 the contract labour such number of rest-rooms or such other suitable

alternative accommodation within such time as may be prescribed.

(2) The rest-rooms or the alternative accommodation to be provided

under sub-section 0) shall be sufficiently lighted and ventilated and shall be

maintained in a clean and comfortable condition.

2°

18. It shall be the duty of every contractor employing contract

labour in connection with the work of an establishment to which this

Act applies, to provide and maintain—

(a) a sufficient supply of wholesome drinking water for the contract

labour at convenient places ;

(b) a sufficient number of latrines and urinals of the prescribed

types so situated as to be convenient and accessible to the contract labour

in the establishment ; and

(c) washing facilities.

19. There shall be provided and maintained by the contractor so as

j 0 to be readily accessible during all working hours a first-aid box equip-

ped With the prescribed contents at every place where contract labour

is employed by him.

20. (1) If any amenity required to be provided under section 16,

section 17, section 18 or section 19 for the benefit of the contract labour

employed in an establishment is not provided by the contractor within the

time prescribed therefor, such amenity shall be provided by the principal

employer within such time as may be prescribed.

(2) All expenses incurred by the principal employer in providing

the amenitv mav be recovered bv the principal emulover from

the

Rest-rooms.

Other

facilities.

First-aid

facilities.

Liability of

principal

employer In

certain cases.

760 G. of 1,-2.

958

THE, GAZETTE OF INDIA EXTRAORDINARY

[PART H

Responsibi-

lity for pay-

ment of

wages.

Obstructions^

Contraven-

tion of

provisions

regarding

employment

of contract

labour.

contractor either by deduction from any amount payable to the contractor

under any contract or as a debt payable by the contractor.

31. (J) A contractor shall be responsible for payment of wages to

each worker employed by him as contract labour and such wages shall be

paid before the expiry of such period as may be prescribed.

(2) Every principal employer shall nominate a representative duly

authorised by him to be present at the time of disbursement of wages by

the contractor and it shall be the duty of such representative to certify the

amounts paid as wages in such manner as may be prescribed-

(j) It shall be the duty of the contractor to ensure the disburse- 10

ment of wages in the presence of the authorised representative of the prin-

cipal employer.

(4) In case the contractor fails to make payment of wages within

the prescribed period or make short payment, then the principal employer

shall be liable to make payment of wages in full or the unpaid balance 15

due, as the case may be, to the contract labour employed by the contrac-

tor and recover the amount so paid from the contractor either by deduction

from any amount payable to the contractor under any contract or as a debt

payable by the^ contractor.

CHAPTERJVI

2 0

PENALTIES AND PROCEDURE

22. (2) Whoever obstructs an inspector in the discharge of his duties

under this Act or refuses or wilfully neglects to afford the inspector any

reasonable facility for making any inspection, examination, inquiry or in-

vestigation authorised by or under this Act in relation to an establishment 25

to which, or a contractor to whom, this Act applies, shall be punishable

with imprisonment for a term which may extend to three months, or with

fine which may extend to five hundred rupees, or with both,

(2) Whoever wilfully refuses to produce on the demand of an

inspector any register or other document kept in pursuance of this Act or 30

prevents or attempts to prevent or does any thing which he has reason to

believe is likely to prevent any person from appearing before or being

examined by an inspector acting in pursuance of his duties under this Act,

shall be punishable with imprisonment for a term which may extend to

three months, or with fme^which may extend to five hundred rupees, or 35

with both.

23. Whoever contravenes any provision of this Act or of any rules

made thereunder prohibiting, restricting or regulating the employment

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

95$

of contract labour, or contravenes any condition of a licence granted under

this Act, shall be punishable with imprisonment for a term which may

extend to three months, or with fine which may extend to one thousand

rupee?, or with both, and in the case of a continuing contravention with

5 an additional fine which may extend to one hundred rupees for every day

during which such contravention continues after conviction for the first

such contravention.

24. If any person contravenes any of the provisions of this Act or

of any rules made thereunder for which no other penalty is elsewher

10 provided, he shall be punishable with imprisonment for a term which may

extend to three months or with fine which may extend to one thousand

rupees, or with both.

25. (/) If the person committing an offence under this Act is a com-

pany, the company as well as every person in charge of, and responsible to,

15 the company for the conduct of its business at the time of the commission of

the offence shall be deemed to be guilty of the offence and shall be liable to

be proccded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any

such person liable to any punishment if he proves that the offence was

20 commuted without his knowledge or that he exercised all due diligence to

prevent the commission of such offence.

(3) Notwithstanding anything contained in sub-section (j), where an

offence under this Act has been committed by a company and it is proved

that the offence has been committed with the consent or connivance of, or

25 that the commission of the offence is attributable to any neglect on the part

of any director, manager, managing agent or any other officer of the com-

pany, such director, manager, managing agent or such other officer shall also

be deemeed to be guilty of that offence and shall be liable to be proceeded

against and punished accordingly.

-jQ

Explanation:—For the purpose of this section—

(a) "company" means any body corporate and includes a firm or

other association of individuals; and

(b) "director", in relation to a firm, means a partner in the firm.

26. No court shall take cognizance of any offence under this Act ex-

35 cept on a complaint made by, or with the previous sanction in writing of, the

inspector and no court inferior to that of a Presidency Magistrate or a Ma-

gistrate of the first class shall try any offence punishable under this Act.

Other offen-

ces.

Offences by

companies.

Cognizance

of offences.

96o

THE GAZETTE OF INDIA EXTRAORDINARY

[PART ll

Limitation of

prosecutions.

Inspecting

staff.

27. No court shall take cognizance of on offence punishable under

'• this Act unless the complaint thereof is made within three months from

the date on which the alleged commission of the offence came to the know-

ledge of an inspector:

Provided that where the offence consists of disobeying a written order 5

made by an inspector, complaint thereof may be made within six months

of the date on which the offence is alleged to have been committed.

CHAPTER VII

MISCELLANEOUS

28. (1) The appropriate Government may, by notification in

I 0

the Official Gazette, appoint such persons as it thinks fit to be

inspectors for the purposes of this Act, and define the local limits

within which they shall exercise their powers under the Act.

(2) Subject to

any

rules made in this behalf, an inspector may

within the local limits for which he is appointed—

(a) enter, at all reasonable hours, with such assistants (if any),

being persons in the service of the Government or any local or other

public authority as he thinks fit, any premises or place where contract

labour is employed, for the purpose of examining any register or record

or notices required to be kept or exhibited by or under this Act or rules 2o

made thereunder, and require the production thereof for inspection;

(b) examine any person whom he finds in any such premises or

place and who, he has reasonable cause to believe, is a workman

employed therein;

(c) require any person giving out work and any workman, to give 25

any information, which is in his power to give, with respect to the

names and addresses of the persons to, for and from whom Lhe work is

given out or received, and with respect to the payments to be made for

the work ;

(d~) seize or tak^ copies of such register, record of wages or notices _0

or portions thereo as he may consider relevant in rospect of an offence

under this Act which he has reason to bolieve has been committed by

the principal employer ; and

SEC. &]

THE GAZETTE OF INDIA EXTRAORDINARY

961

45 of i860.

5 of 1898.

(e) exercise such other powers as may be prescribed.

(3) Any person required to produce any documentor thirg or to give

any information required by an inspector under sub-section (2) shall be

deemed to be legally bound to do so within the meaning of section 175 and

5 section 176 of the Indian Penal Code.

(4) The provisions of the Code of Criminal Procedure, 1898 shall, so

far as may be, apply to any search or seizure under sub-section (2) as they

apply to any search or seizure made under the authority of a warrant issued

under section 98 of the said Code.

29. (1) Every principal employer and every contractor shall maintain 1

such registers and records giving such particulars of contract labour em- <

ployed, the nature of work performed by the contract labour, the rates of

wages paid to the contract labour and such other particulars in such form

as may be prescribed.

(2) Every principal employer and every contractor shall keep

exhibited in such manner as may be prescribed within the premises of the

establishment where the contract labour is employed, notices in the pres-

cribed form containing particulars about the hours of work, nature of duty

and such other information as may be prescribed.

20 *

30. (1) The provisions of this Act shall have effect notwithstanding

anything inconsistent therewith contained in any other law or in the terms

of any agreement or contract of service, or in any standing orders applic-

able to the establishment whether made before or after the commencement

of this Act:

Provided that where under any such agreement, contract of service

or standing orders the contract labour employed in the establishment are

entitled to benefits in respect of any matter which are more favourable to

them than those to which they would be entitled under this Act, the con-

tract labour shall continue to be entitled to the more favourable benefits in

30 respect of that matter, notwithstanding that they receive benefits in respect

of other matters under this Act.

(2) Nothing contained in this Act shall be construed as precluding

any such contract labour from entering into an agreement with the princi-

pal employer or the contractor, as the case may be, for granting them rights

35 or privileges in respect of any matter which are more favourable to them

than those to which they would be entitled under this Act.

Registers and

other recor-

ds to be mai-

ntained.

Effect of

laws and

agreements

inconsistent

with this

Act.

962

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

Power to

exempt In

special

cases.

Protection

action

taken under

this Act.

Power to

give direc-

tions.

Power to

remove

difficulties-

Power to

make rules.

31. The appropriate Government, may, if in its opinion it is necessary

or expedient so to do, direct, by notification in the Official Gazette, that

subject to such conditions and restrictions, if any, and for such period or

periods, as may be specified in the notification, all or any of the provisions

of this Act or the rules made thereunder shall not apply to any establish- 5

ment or class of establishments or any class of contractors.

32. (1) No suit, prosecution or other legal proceeding shall lie against

any registering officer, licensing officer or any other Government servant or

against any mc-mber of the Central board or the State board, as the case

may be, for anything which is in good faith done or intended to be done in I 0

pursuance of this Act or any rule or order made thereunder.

(2) No suit or other legal proceeding shall lie against the Govern-

ment for any damage caused or likely to be caused by anything which is in

good faith done or intended to be done in pursuance of this Act or any rule

or order made thereunder.

33. The Central Governmenrtnay give directions to the Government

of any State as to the carrying into execution in the State of the provisions

contained in this Act.

34. If any difficulty arises in giving effect to the provisions of this Act,

the Central Government may, by order published in the Official Gazette, 2o

make such provisions not inconsistent with the provisions of this Act, as

appears to it to be necessary or expedient for removing the difficulty.

35. (j) The appropriate Government may, subject to the condition

of previous publication, make rules for carrying out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the 25

foregoing power, such rules may provide for all or any of the following

matters, namely :—

(a) the number of persons to be appointed as members represen-

ting various interests on the Central board and the State board, the

term of their office and other conditions of service, the procedure to be 30

followed in the discharge of their functions and the manner of filling

vacancies ;

(b) the times and places of the meetings of any committee consti-

tuted under this Act, the procedure to be followed at such meetings

including the quorum necessary for the transaction of business, and the 35

fees and allowances that may be paid to the members of a committee ;

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

963

section 7, the levy of a fee therefor and the form of certificate of

registration ;

(d) the form of application for the grant or renewal of a licence

under section 13 and the particulars it may contain ;

(e) the manner in which an investigation is to be made in respect

of an application for the grant of a licence and the matters to be taken

into account in granting or refusing a licence ;

(f) the form of a licence which may be granted or renewed under

1°

section 12 and the conditions subject to which the licence may be

granted or renewed, the fees to be levied for the grant or renewal of

a licence and the deposit of any sum as security for the performance

of such conditions ;

(g) the circumstances under which licences may be varied or

amended under section 14;

(h) the form and manner in which appeals may be filed under

section 15 and the procedure to be followed by appellate officers in

disposing of the appeals ;

(1) the time within which facilities required by this Act to be pro-

vided and maintained may be so provided by the contractor and in

case of default on the part of the contractor, by the principal employer;

(j) the number and types of canteens, rest-rooms, latrines and

urinals that should be provided and maintained ;

(k) the type of equipment that should be provided in the first-aid

3 5

boxes;

(I) the period within which wages payable to contract labour

should be paid by the contractor under sub-section (1) of section 2 1 ;

(m) the form of registers and records to be maintained by prin-

cipal employers and contractors ;

(«) the submission of returns, forms in which, and the authorities

to which, such returns may be submitted ;

(0) the collection of any information or statistics in relation to

contract labour ; and

(/>) any other matter which has to be, or may be, prescribed under

this Act.

964

THE GAZETTE OF INDIA EXTRAORDINARY

[PAHT 11

STATEMENT OF OBJECTS AND REASONS

The system of employment of contract labour lends itself to various

abuses. The question of its abolition has been under the consideration of

Government for a long time. In the Second-Five-Year-Plan, the Planning

Commission made certain recommendations, namely, undertaking of studies

to ascertain the extent of the problem of contract labour, progressive aboli-

tion of the system and improvement of service conditions of contract labour

where the abolition was not possible. The matter was discussed at various

meetings of Tripartite Committees at which the State Governments were

also represented and the general consensus of opinion was that the system

should be abolished wherever possible and practicable and that in cases

where this system could not be abolished altogether, the working conditions

of the contract labour should be regulated so as to ensure payment of wages

and provision of essential amenities.

2. The proposed Bill aims at the abolition of contract labour in res-

pect of such categories as may be notified by the appropriate Government

in the light of certain criteria that have been laid down, and at regulating

the service conditions of contract labour where abolition is not possible. The

Bill provides for the setting up of Advisory boards of a tripartite character,

representing various interests, to advise the Central and State Governments,

in administering the legislation and registration of establishments and con-

tractors. Under the scheme of the Bill, the provision and maintenance of

certain basic welfare amenities for contract labour, like drinking water and

first-aid facilities, and in certain cases rest-rooms and canteens, have been

made obligatory. Provisions have also been made to guard against defaults

in the matter of wage payment.

NEW DELHI;

JAGJIVAN RAM.

The 27th August, 1966.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF

THE CONSTITUTION OF INDIA

[Copy of letter No. 14 (5)/66-LWI, dated the 5th September, 1966

from Shri Jagjivan Ram, Minister of Labour, Employment and Rehabi-

litation to the Secretary, Lok Sabha.]

The President, hiving been informed of the subject matter of the

Contract Labour (Regulation and Abolition) Bill, 1966 has recommended

it, under articles 117 (1) and 117 (3) of the Constitution, for introduction

and consideration of the Lok Sabha.

SEC. 2]

THE GAZETTE 6F INDIA EXTRAORDINARY

965

FINANCIAL MEMORANDUM

The following clauses of the Contract Labour (Regulation and

Abolition) Bill involve expenditure to the Central Government : —

(1) Clause 3—Constitution of a Central Advisory Board.

(2) Clause 5—Appointment of Committees by the Central Advisory

Board.

(3) Clause 6—Registration of

establishments. (Appointment

registering officers for the Central sphere.)

(4) Clause 11—Appointment of licensing officers and issue of licences

for the Central sphere.

(5) Clause 28—Appointment of inspecting staff by the Central

Government.

2. It is proposed to entrust the enforcement of the provisions of the

Bill in all establishments in respect of which the Central Government is

'appropriate'Government, i.e., work relating to registration of estab-

lishments employing contract labour (clause 6), licensing of contractors

(clause II), inspections (clause 28), etc., to the Central Industrial Relations

Machinery.

It may be necessary to appoint one Assistant Labour

Commissioner at each regional headquarters namely, Bombay, Calcutta

Madras, Jabalpur, Kanpur, Dhanbad and Hyderabad, and two Labour

Enforcement Officers in each region. Taking into account the adminis-

trative work that may devolve on the office of the Chief Labour Commis-

sioner and the Department of Labour and Employment, the following

staff is likely to be required :—

I. Department of Labour and Employment

1. Section Officer

1 Rs. 350 (40o)-aoo

2. U. D. C.

3. L. D. C.

II. Office of the Chief Labour Commissioner

1. Regional Labour Commissioner

Rs. 900-1250

2. Section Officer

3. Stenographer

760 G. of 1.—3.

9⁶⁶

THE GAZETTE OF INDIA EXTRAORDINARY

[PART U

4. Assistants

5. U. D.Cs.

6. L. D. Cs.

7. Daftry

8. Peons

III. Regional Headquarters

1. Assistant Labour Commissioners

Rs.

600-950

2. U. D. Cs.

3. L. D. Cs.

4. Peons

IV. For field work

1. Labour Enforcement Officers

Rs. 350-25-575

2. L. D. Cs.

3. Peons

The total non-recurring expenditure likely to be incurred will

amount to Rs. 37,000/- and recurring expenditure to about Rs. 4,52,000/-

per annum.

3. In addition to the expenditure mentioned above expenditure

on T. A. and D. A. of the non-official members of the Central Advisory

Board, to be constituted under clause 3 and Committees to be constituted

under clause 5 of the Bill will also be met by the Department of Labour

and Employment. For holding two meetings in a year the expenditure

is likely to be Rs. 10,000/- per annum, thus increasing

he annual

recurring expenditure to Rs. 4,62,000/-.

SBC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

967

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 16 of the Bill empowers the appropriate Government to make

rules regarding canteens to e provided by contractors Jn every establish-

ment wherein contract labour numbering one undredormore is ordinarily

employed and wherein work requiring employment of contract labour is

likely to continue for the prescribed period. The matters in respect of which

rules may be made relate to the date by which the canteens should be pro-

vided, the number of canteens, the standards in respect of construction, ac-

commodation and furniture to be provided and the foodstuffs which may be

served and the charges which may be made therefor.

2. Clause 28(2) of the Bill provides for the making of rules subject to

which the Inspecting staff may exercise the powers of entry, inspection

search and seizure conferred under that clause.

3.. Clause 35 of the Bill empowers the appropriate Government to

make rules for carrying out the purposes of the Act. The various matters in

respect of which rules may be made are specified in sub-clause (2) of that

clause. They relate inter alia to the constitution of the Central and the State

Advisory boards, the procedure to be followed by the Central board and

the State boards and by the Committees thereof, manner and procedure for

registration of establishments, the form of application for the grant or rene-

wal of licences for contractors, etc., the form and manner in which appeals

may be filed and the procedure to be followed by appellate officers, the

manner and time within which facilities like canteens, rest-rooms, supply of

wholesome drinking water, 1 atrines, urinals and first-aid facilities shall be

provided and maintained by the contractor, and in certain contingencies, by

the principal employer, the period witnin which the wages have to be paid

by the contractor and the manner in which the representative of the princi-

pal employer should certify the payment of wages, the forms of registers to

be maintained and the returns to be submitted.

4. These are all matters of administrative procedure and detail. The

delegation of legislative power is thus of a normal character.

S. L. SHAKDHER,

Secretary

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OP INDIA PRESS,

MDMTO »*>AD, NEW DEMI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS,

DELHI, 1966.