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REGISTERED No. D.221

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No 7j NEW DELHI, WEDNESDAY, FEBRUARY 26, 1961 PHALGUNA 7, 1891

Separate paging is given to this Part in order that it may be filed as a separate compilation.

LOK SABHA

The following report of the Joint Committee on the Bill to regulate the employment of contract labour in certain establish- ments and to provide for its abolition in certain circumstances and for matters connected therewith was presented to Lok Sabha on the 26th February, 1969: —

COMPOSITION OF THE COMMITTEE

Shri Kashi Nath Pandey—Chairman

MEMBERS

Lok Sabha

2. Shri R. K. Amin

3. Shri N. Anbuchezhian

1 89

1319 G of I—1.

4. Shri Tridib Chaudhuri

5. Shri M. Deiveekan

6. Shri K. R. Ganesh

7. Shri Shri Chand Goyal

8. Shri Ram Krishan Gupta

9. Shri S. C. Jamir

10. Dr. Ranen Sen

11. Shri Hukain Chand Kachwai

12. Kumari Kamla Kumari

13. Shri Samarendra Kundu

14. Shri Bhajahari Mahato

15. Shri K. Ananda Nambiar

16. Shri S. D. Patil

17. Shri Khagapathi Pradhani

18. Shri S. P. Ramaraoorthy

19. Shri Viswasrai Narasimha Rao

20. Dr. Sisfr Kumar Saha

21. Shri P. M. Sayeed

22. Shri Devon Sen

23. Shri B. Shankaranand

24. Shri Shashi Bhushan

25. Shri Biswanarayan Shastri

26. Shri S. M. Solankl

27. Shri G. Venkatswamy

28. Shri R. S. Vidyarthi

29. Shri Virbhadra Singh

30. Shri D. R. Chavan

Rajya Sabha

31. Shri Anant Prasad Sharma

32. Shri Binoy Kumar Mahanty

33. Shri Dalpat Singh

34. Shri A. C. Gilbert

35. Pandit Bhawaniprasad Tiwary

36. Shri Shyam Dhar Mlsra

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 191

37. Shri Sherkhan

38. Shri Sriman Prafulla Goswami

39. Shri Sanda Narayanappa

40. Shri Sundar Mani Patel

41. Shri Prem Manohar

42. Shri Rewati Kant Sinha

43. Shri Suraj Prasad

44. Shri Brahmanand Panda

45. Shri Jaisukhlal Hathi

LEGISLATIVE COUNSEL

1. Shri P. L. Gupta, Additional Legislative Counsel, Ministr

0/ Law.

REPBESENTATIVES OF THE DEPARTMENT OF LABOUR AND EMPLOYMENT

1. Shri P. C. Mathew—Secretary.

2. Dr. S. T. Merani—Joint Secretary.

3. Shri H. K. Chaudhry—O. S. D. (Law).

4. Shri R. B. Shukla—Director, Industrial Relations.

5. Shri O, Venkatachalam—Chief Labour Commissioner

(Central).

6. Shri S. C. Gupta—Deputy Chiej Labour Commissioner

(Central).

SECRETARIAT

Shri M. C- Chawla—Deputy Secretary.

REPORT OF THE JOINT COMMITTEE

1. the Chairman of the Joint Committee to which the Bill"¹ to regulate the employment of contract labour in certain establish- ments and to provide for its abolition in certain circumstances and for matters connected therewith was referred, having been authoris- ed to submit the report on their behalf, present their Report, with the Bill as amended by the Committee, annexed thereto.

2. The Bill was introduced in Lok Sabha on the 31st July, 1967. The motion for reference of the Bill to a Joint Committee was moved in Lok Sabha by Shri Jaisukhlal Hathi, Minister of Labour and Rehabilitation, on the 7th May, .1968 which was adopted on the same day.

3. Rajya Sabha discussed and concurred in the said motion on the 13th May, 1968.

4. The message from Rajya Sabha was published in the Lok Sabha Bulletin, Part II, dated the 1.6th May, 1968.

5. The Committee held thirteen sittings in all.

6. The first sitting of the Committee was held on the 14th May, 1968 to draw up their programme of work. The Committee at this sitting decided to hear evidence from public bodies, trade unions, organisations, associations and individuals desirous of presenting their views before the Committee and to issue a Press Communique inviting memoranda for the purpose. The Committee also decided to invite the views of some All-India representative trade unions' central organisations, railway trade unions' federations, Railways, C.P.W.D., Ports and Docks, Coal and Steel undertakings and all the State Governments|Union Territories on the provisions of the Bill and to inform them that they could also give oral evidence before the Committee, if they so desired.

7. 33 memoranda|representations on the Bill were received by the Committee from different States I Government Departments' associations [individuals.

n. At their third silting held on the 21st June, 1968, the Com- mittee decided to undertake on-the-spot study visits to the different

•Published in ihe Gazctic of India, Hxtvaordinary. Part TI Section 2, dated Ihr list July, 1967.

regions of the country where contract labour was employed In large strength to enable them to acquire first-hand knowledge of the conditions in which the contract labour worked,

9. At their fifth sitting held on the 27th August, 1968. the Uom- ,-nittiH: decided to divide themselves into four Study Groups for the purpose of undertaking an on-the-spot study and approved the tour programmes of the Study Groups to visit the various industries, Ports, Docks, Railway Establishments etc. in the States of West Ben- gal and Bihar; Maharashtra and Goa; Mysore and Madras and An- dhra Pradesh and Orissa 'during September|October, 1968. During their visit, the members saw the working conditions of the contract labour and held discussions with the various officials and represen- tatives of non-official organisations on the provisions of the Bill.

10. The Committee have decided that the Study Notes on the visit:-: undertaken by their Study Groups should be laid on the Tables of both the Mouses.

¹). At their second, fourth and sixth to ninth sittings held on the 20th and 22nd June, 26th to 28th September and 23rd November, 1968, respectively, the Committee heard the evidence given by 12 parties.

12. The Committee have decided that the evidence given before j,hem should be printed and laid on the Tables of both the Houses.

13. The Report of the Committee was to be presented by the first day of the Fifth Session of Lok Sabha. As this could not be done, the Committee at their second sitting held on the 20th June, 1968 decided to ask for extension of time for presentation of their Report upto the first day of the second week of the Sixth Session, Neces- sary motion was brought before the House and adopted on the 22nd July, 1968. The Committee decided to ask for further extension of time upto the last day of the second week of the Seventh Session ivhich was granted by the House on the 18th November, 1968.

14. The Committee considered the Bill dause-by-clause :it their tenth to twelfth sittings held from the 6th to 8th January, 1969.

35. The Committee considered and adopted their Report on the 29th January, 1969.

Hi. The observations of the Committee with regard to the principal changes proposed in the Bill are detailed in the succeeding paragraphs.

17. Enacting Formula.—-The amendment therein is of a formal nature.

18. Clause 1.—The Committee feel that decision of the Central or the State Government, under clause 1(5) on the question whether a work performed in an establishment is intermittent or casual in nature, should only be made after consultation with the Central or State Advisory Board, as the case may be.

Further, the Committee propose to insert an Explanation under clause 1(5) to the effect that If a work in an establishment is per- formed for more than 120 days in the preceding twelve months or in case of a work of a seasonal character, it is performed for more than 60 days in a year, such work in an establishment shall not be deemed to bo of intermittent nature.

The clause has been amended accordingly.

The other amendment in the clause is of a formal nature.

19. Clause 2.—In sub-clause (i) (B) of the clause, it was sug- gested that due to steep wage rise in recent times, the raising of wage limit in respect of a workman in a supervisory capacity from Rs. 500!- to Rs. 750 - would be more realistic.

The Minister-inchange explained that this wage limit of Rs. 500 in respect of workman in a supervisory capacity was laid down in several other labour laws and that the question of raising this wage limit in the various labour laws was already under consi- deration of his Ministry. He assured the Committee that he would bring forth suitable amendments to all labour laws in due course so as to put the wage limit on a uniform basis.

20. Clause 3,—In order to achieve a broad based representation on the Central Advisory Board, the Committee are of the view that the Central Advisory Board should consist of not less than 11 mem- bers excluding the Chairman and the Chief Labour Commissioner (C) and further, to safeguard representation of workmen on the Board, the number of members nominated to represent workmen should not be less than the number of members nominated to re- present principal employers and contractors.

Sub-clause (2) (C) of the clause has been amended accordingly.

21. Clause 4.—In accordance with the changes proposed in clause 3 above, the clause has also been amended to provide that a State

Advisory Board shall not consist of less than nine members exclud- ing the Chairman and the Labour Commissioner and a correspond- ing provision has been made in the clause that the number of mem- bers nominated to represent workmen shall not be less then the members nominated to represent the principal employers and con- tractors on the Board.

22. Clause 12.—Sub-clause (2) of the clause provides that a licence to be issued by the licensing officer to a contractor may contain conditions inter alia to provide for fixation of minimum wages to the contract labour. It was urged that the term 'minimum wages' had a definite connotation. In order to obviate any difficulty in providing payment of reasonable wages to contract labour which might be necessary in certain cases, the Committee decided to omit the word 'minimum' occurring therein.

Sub-clause (2) of the clause has been amended accordingly.

23. Clause 28.—Untier sub-clause 2(d) of the clause as it original- ly stood, the Inspecting Staff could only seize or take copies of the records of the principal employer. It did not empower the Inspect- ing Staff to seize or take copies of the contractor's record. The Committee have amended sub-clause 2(d) to provide that besides the records of the principal employer, the records of the contractor are also subject to seizure.

Sub-clause 2(d) of the clause has been amended accordingly.

24. The Joint Committee recommend that the Bill as amended be passed.

KASHI NATH PANDEY,

NEW DELHI;

Chairman,

The 29th January, 1969.

Joint Committee.

MINUTES OF DISSENT

I

I was one of those who strongly canvassed for a proper legis- lation to abolish the contract labour system in India. This is a system which desires proper wages and working conditions to the millions of manual and office workers all over India, a substantial portion of the earnings of their labour being robbed of by un- scrupulous middlemen in the name of contractors. No civilized world which preaches socialism can afford to tolerate this inhuman exploitation. In some corners and backward areas this plunder becomes inhuman and goes unchallenged. The Government of India, which is the biggest employer, which instead of setting example to private sector indulges very much in this atrocity and opens the floodgates of such inhuman exploitation of a section of labour, who by the nature of its employment are unorganised and unprotected. For example, I can quote the case of 3£ lakhs of "casual labour" on Railways besides thousands of workmen em- ployed through contractors for construction work. In the case of casual labour the Railway Officials themselves step into the shoes of the contractor and engage them for indefinite period ranging from one to ten years and even more, denying them all the faci- lities that are normally due to a regular employee. We came across with several such workmen during our study tour. Many more instances can be quoted in other Departments too.

2. While the problem being so' deep and complicated, the pro- visions like the ones envisaged in this piece of legislation "re far from satisfactory. Many members in the Joint Committee tried their best to improve upon the provisions of the Bill but could not succeed. Therefore, I regret to record my disagreement to the amended Bill on the following grounds: —

(i) This is a measure which does not intend abolition of the contract labour system as such;

(ii) This measure only regularises this atrocious system in the name of attempting to "gradual abolition";

(iii) Even the so-called "regulation" which is contemplated will not give any material benefit to the unfortunate mil-

lions of contract labour, who by circumstances beyond their reach are made the victims;

(iv) This does not even put a bieak on the irregularities practised by the Government Departments, at least to begin with.

3. In this background, I am afraid this legislation also may tura out to be a dead-letter when put to practice. It will be only pro- per if the Government would reconsider the whole matter and bring forward suitable amendments to recast this legislation before it is finally adopted by the House.

NEW DFLHI; K. ANANDA NAMBTAR

February 14, 1969.

II

The emphasis in the Bill has been more on regulating the contract labour than on its abolition. Out of 35 clauses of the Bill only Clause No. 10(1) deals specifically with prohibition of employement of con- tract labour.

Even this right has been hedged in with so many conditions as to make prohibition of contract labour almost an impossibility.

2. The Bill excludes from its purview the casual labour whose number is in the region of three lakhs in the Railways alone and whose service conditions are in no way better than those of the con- tract labour.

3. The protection sought to have been given to workmen in esta- blishments in which work only of an intermittent or casual nature is performed is through consultation of the Government in the Central or State Boards, but it is illusory, as in all these Boards, the Govern- ment and the employers and contractors together will have a majo- rity. In the case of determination of whether an establishment I? of 0 perennial nature or not even this consultation with the Board?, Central or State, has not been prescribed.

4. The complicated system of registration of establishment? em- r loving contract labour and of appointment of licensing officers and

1319 G of 1—2.

of licensing of contractors is likely to give rise to corrupt practices on a large scale.

5. Even under the amended Bill, the principal employer by en- gaging contract labour will have the opportunity to get labour at lower than the prevailing rates paid to permanent workers end make savings in fringe benefits such as Provident Fund, minimum profit— bonus and leave and holidays, housing etc.

6. Further, contractors' scope to deprive the contract labour of their legitimate dues remains unfettered.

7. The punishments provided for contraventions of provisions of the Bill, particularly by the employers and the contractors are inade- quate and will hardly be a deterrent against contraventions of the provisions.

8. The Bill, in our opinion, will fail in its primary objective of abolishing contract labour.

NEW DELHI; DEVEN SEN

February 17, 1969. RANEN SEN

III

i cannot agree with this Bill, both as it is conceived and as it i" framed. My objection to the Bill as it is conceived, is in regard to its approach. While it is true that every step should be taken to protect labour wherever employed against possible malpractices and also to ensure in regard to their employment, observance of fair standards and practices, this does not mean that one should throw away the baby with the bath. In fact, there are areas where the contract labour should be abolished, while, in others it should be restricted, but there still remain some areas where it should be encouraged since it is both desirable and necessary for the efficiency of the economy.

2. There exists a good deal of confusion in regard to the thinking on contract labour. On one hand, there is a demand for complete abolition of contract labour—although to begin with, it is conceded that in some sectors of the economy the restrictions may be im- posed. This is the view which emanates from the communist ideology—which bates anybody between capital and labour i.e. any middlemen, who is considered as sterile and useless and hence

worthy of removal. This view is totally wrong and cannot be sustained.

3. To some extent, the view just mentioned seems to be working in putting this Bill forward—because its statement of objects and reasons starts with the statement that the contract system leads itself to various abuses. This is indeed a very odd way of putting the matter. In fact, contract system is the necessary conse- quence of the process of division of labour so essential for economic development. In fact, in the present system of our economy—every one other than entrepreneurs—receives contractua? returns and therefore work on contract. In fact, each one of us adds to the utility of goods and services by one's own labour. And hence, such a view that, no middlemen is required cannot be sustained. The move to introduce this Bill with such intention and understanding in the background should be nipped in the bud.

4. But, fortunately there is another view regarding contract labour that is labour employer by a contractor as conceived in clause 2 (c) of the Bill. It is generally believed that whenever contract la- bour is engaged, the conditions of work of such labour are worse than regular labour. More often than not, the principal employer is averse to take any responsibility regarding wages and other condi- tions of labour employed by contractors.

5. Real objection to contract labour in this sense is that the con- tract labour Is engaged by the employer through an intermediary to evade obligations cast on him under various labour enactments like Employees State Insurance Act, Employees Provident Fund Act, Industrial Disputes Act etc. Sometimes contractors are brought Into the picture in order to use them against regular employees so that the strength of their union power be broken and they be prevented from asking for rise In their wages.

6. Really speaking, this is a case where the Bill should try to separate corn from the chaff. The contract labour used to evade the agreement deliberately entered by two parties should be abolished without delay. Because, such an attempt is a violation of the agree- ment voluntarily arrived at by two parties—labour and capital—in a particular industry. The criteria put forth by the Supreme Court become relevant in this regard. As a matter of fact, the Bill should have tried to bring out this intention of Supreme Court in clause 10 of Chapter I. The four criteria stipulated by the Supreme Court in its judgment In the case of Standard Vacuum Refining Co. of India Ltd. vs. their workmen (1960 II ILS) are conjunctive {.". all the four conditions must be satisfied for the abolition of contract labour in any establishment. In the Bill these criteria have been

separately mentioned which is wrong and cannot therefore be accepted.

7. It is pertinent to quote from the judgement of the learned judges. "In the present case no such thing arises and the only question lor decision is whether the work which is perennial and must go on from day to day and which is Incidental and necessary for the work of the refinery and which is sufficient to employ a considerable number of whole-time workmen and which is being done in most concerns through regular workmen, should be allowed to bo done by contractors." The Supreme Court wanted to abolish such contract work instead of to extend the principle all over is acting- against the interest of the Indian economy.

3. This question again needs to be examined in the context of the economy in general and Indian economy In particular. Various studies in the working of the economy all over the world have revealed that contract labour contributes to increase in efficiency, reduction in costs, streamlined administrative and accounting pro- cedures, a greater utilisation of technological changes, availability of outside expertise with superior technical know-how, stabilisation of labour force and elimination of wastage 'due. to absenteeism.

9. It may well be the case that an entrepreneur with ai view to concentrate his administrative talent in more important task, may like to hand over certain work to others and in that case it is a desirable division of labour. Or else some type of work may re- quire certain type of expertise which may be needed for at short while only, in such cases the work done on contract basis may be useful both to workers as well as to consumers. Wage system based on piece-work is also a contract labour viefred differently but of the same nature. Sometimes, some type of work needs more supervision labour than the actual labour required to do the work. In that case contract labour may be more useful. Therefore, there ar"e circumstances when contract labour is a positive good—a neces- sity rather than an evil. In that case the economic organisation should not only permit but also should encourage its application on n wide basis.

10. Sometimes contract labour enables us to obtain goods and services with lower cost than otherwise possible. It should be then considered as a boon—if the benefit of lower cost goes to consumers,—or if it enables us to provide employment to large number of men and women, or it enables us to develop the indus- try concerned. It is juat conceivable that by abolishing all con- tract labour, the principal emplover may he compelled to employ permanent workers for all types of work and thereby incur higher

SKC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 201

costs. But as a result of this process, if he holds a monopoly,— the output of the industry concerned, may be restricted—his profit* maintained the employment also restricted, prices high for con- sumers or if the industry concerned has to face competition, the industry becomes sick industry and very soon has to be closed down. The abolition of contract labour in such cases is not only harmful but also disastrous. It is only when elimination of con- tract labour reduces the excessive profits, or abnormal returns of contractors without hampering the growth of employment as well as the output, it may be helpful.

11. To some extent, the organised industries in India agree to several concessions to labour because in the context of more or less an insulated economy of India against foreign competition, a monopoly condition—both of labour and capital has been created. It is in that condition, concessions are agreed which acts against the interests; of consumers. This also makes the economy rigid and also retards the possible rate of growth of the economy.

12. In India, since the economy is developing, it is likely that changes in techniques of production should take place rapidly. To enable industries to have flexibility for rapid shifts in production, it is not desirable to put any industry into a straight-jacket or into a- set pattern. Complete abolition or imposition of many restric- tions on the use of contract labour at this stage therefore are not desirable. Sometimes labour finds agricultural work during a particular season, say rainy season, or kharif season but is free during the Rabi season, or say in summer, when he would like to Imve seasonal work for a few days. Sometimes, labour itself does iwit like to bind down to a particular factory, while many times, he could spare any one member of his family for some contractual work but not a particular member always. In such cases, contract labour is convenient to labourer himself. The consumer also some- times obtains cheep and efficient service—only when contract sys- tem prevails—otherwise, division of labour is not possible. The construction work, loading and unloading, transportation etc. are types of work which can be conveniently, cheaply and efficiently handled by contract labour.

13. Thus, it is necessary to recognise (a) that contract labour is not only necessary but also a positive good in some sectors of the economy and hence it should be encouraged; (b) In some, it is like- ly to lead to abuses, and in that case, it should be abolished where only abuses and no good is possible; and (c) it should be restricted where both good and evil arc Hkely to be reaped. Failure to bring

out these facts categorically in the statement of objects and reasons is likely to lead to its wrongful application in the present form.

14. Let me now come to the operative part of the Bill. In this regard I do not agree with (a) definitions of establishment and con- tractor, (b) powers given to the Government; and (c) location of responsibility on both the contractors and the principal employers as regards payment of wages and provision of amenities.

15. The 19th Session of the Indian Labour Conference first took up the question of contract labour. It is worth while to note the conclusions of the Conference. It sugested that as far as possible the regular work of establishments should be done by the principal employer with workmen engaged directly antl that contract labour should not be engaged where the work Is perennial and must go on from day to day, is incidental and necessary for the work oi the factory, is sufficient to employ a considerable number of workmen and is being done mostly through regular workmen. Where this is not possible, the standards for weekly rest day and overtime should be fixed. Arrangements should also be matle for providing essential amenities. The Bill in fact, ought to have embodied this spirit; instead it has gone beyond its required scope.

If the aim as suggested by the 19th Session is kept in view the clause 5(e) of the Bill should have been amended as to include "any process, operation or other contract work which is of inter- mittent or casual nature."

16. As regards the restrictions imposed on the use of contract labour, the definition of contractor is significant. The types of be- nefits which the Act tries to impose are only necessary if the labour in the definition but unfortunately Bill has tried to cover all con- is employed for a longer duration. This should be reflected clearly, tractors employing contract labour of more than 20 men, even for a day, during the preceding year. This is' totally wrong in princi- ple as well as in regard to its execution. In fact, when all factory laws apply to employers having more than 20 workers, the contrac- tor employing more than 50 men, say for more than 60 days or 90 days, ought to have been brought un'der restraint—or the Act should have been applied to an establishment which employs 20 or more contract labour, on an average per day—during the preceding six months.

17. The distribution such as loading, unloading and transporting also should be done by contract labour. The work which can't be done at one place or which can be separated from manufacturing process as such, or which can't be put under the discipline of fac-

tory work because of its uncertainty and irregularity, should not be put under restrictions by this Act. The work of loading and un- loading, is of this type and therefore should be kept beyond the scope of this Act.

18. It is also wrong to put the responsibility on two agencies— principal employer and contractor in the Bill. To make the Prin- cipal employer as well as the contractor responsible for the pay- ment of wages etc. when contractor is registered and given a licence is wrong. It is better to make any one of them responsible. The Principal employer can be made responsible only when contractors are not brought under the clutches of law. The Principal emplo- yer should be made responsible only when contractor Is not given a licence; if the contractor is registered and holds a licence, the Principal employer should not be made responsible.

19. Moreover, tlv responsibility regarding the provision of can- teen, latrines, drinking water etc. be made also the responsibility of ony one of them, and this should be decMed by the Advisory Council. Sometimes, it may be better that Principal employer is made responsible; while sometimes the contractor. The terms of contract should clearly lay down who should be responsible for what. And the appropriate Government should also be prepared in some cases to locate clearly the responsibility on any one of them.

20. In regard to locating of responsibility of making payment of wages and providing certain facilities on any one of the two— Principal employer or the contractor—it would have been better if the definition of contractor was made clear and specific. In fact, such responsibility on contractor should be laid if he Is an independent contractor i.e., a person who, in the pursuit of an independent business undertakes to do specific jobs of work for other persons without submitting himself to their control in res- pect of the details of the work. While, in order to give relief to workers not diretly employed by the owner, occupier or Manager of an industrial establishment, the Industrial Courts, High Ccurts and Supreme Court have laid down that where the principal em- ployer exercises control and supervision over the worker, the worker should be deemed to be a worker under the Principal em- ployer so as to attract the benefits of the Factories Act and the Industrial Disputes Acts. For such workers, Principal employer be made responsible. But the Act should not ride on two horses— which sometimes may mean riding on none.

21. There is also an important mistake of disregarding equity in, this Bill. It is known to all that probably public sector undertakings

employ contract labour on bigger scale than the private sector undertakings. In that case, to leave the powcis to appropriate gov- ernments either under clause 10(1) and 10(2) or 5(b) or clause 31 (power to exempt in special cai-.es) may tantamount to giving special facilities to public sector undertakings Such powers cat* be given for public purposes only and any private party which finds discriminatory treatment should have opportunity to approach the Hidiciary for redressing one's own grievances. It is to be regretted that such a fundamental right has not been granted to aggrieved parties in this Bill. Especially appeal to judicial authority should have been allowed in regard to the explanation given in clause 10(2) in the Bill

NEW DELHI- R. K. AMIN

February 13. 1969

IV

I have doubt that the Bill as it emerge-, Irom the Select Com- mittee will meet the object^ enunciated m the statement of objects pnd reasons of the Bill which provide tor progressive abolition of the contract labour system and improvement of service conditions of contract labour. The Bill comes to light mainly due to the ludgement of the Supreme Court in the SLandaid Vacuum Refining Co. of India Ltd. vs. its workmen, 1960, and the repeated demands made at the various Indian Labour Conferences to abolish contract labour system. The Supreme Court judgement was delivered when there was no statutory provision for regulating the contract labour system. The Supreme Court had said that from certain categories of work the contract labour system should be abolished forthwith. But the underlying principle of the judgement suggested that sooner or later this obnoxious system is done away with would be good for the country and the working class. Therefore, it is natural to hope SEC. 2] THE, GAZETTE OF INDIA EXTRAORDINARY 205

2. Most of the representatives of the Trade Unions which the Committee had the occasion to interview and record evidence demanded total and complete abolition of contract labour system. The contract labour system besides exploiting the workers also exploits the economy to the advantage of a few. Large sums which are spent in the construction work is appropriated by a few at the cost of workers and by giving under-rated production. Therefore, the only solution to the problem is complete and total abolition of contract labour system which this Bill has failed to provide.

3. Coming to some of the provisions of the Bill, the clause 1 (4) (a) restricts the operation of this Bill to establishments employing 20 or more workers. This will exclude a large number of organisations who employ lesser people than this and will provide a handle to the unscrupulous employers to break up the main organisation into small units employing less than 20 persons. It further restricts th* operation of the Bill in clause 1(5) where the work is of intermit- tent and of casual nature. The explanation provided for to define what is intermittent and casual will hardly go to meet the limitations of its operation. In the chapter dealing with Advisory Boards the representative of workmen has been kept at the same level as others. This being a Bill dealing with the contract labour and the system, it would have been fair to give a majority representation lo the workers representatives in this Board.

4. For the first time in a legi^'aiion of this sort a definition of workmen as "out worker" has been introduced. In clause 2(i)(C), this "out worker" which lias been defined in great length would block the operation of this Bill to a large number of workers em- ployed in Bidi, Gold, Jewellery, garment industries etc. where "articles or materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repairs. . . ." etc. During our study tour we were shocked to see the miserable plight of the bidi workers who are employed under a contract system and whose wages and other living condi- tions are one of the worst. I ?ra sorry to find that this Bill will not be of any help to them. Tn clause 10 the Government has reser- ved the arbitrary power to abolish the contract labour system as they choose under different conditions. In short this clause takes away all that has been given in other clauses of the Bill. Unless this clause is totally abolished the Bill will convey little meaning to the workers for whose benefit it is enacted.

5. Finally, due to various nagging clauses provided under this Bill the Government will not be able to abolish nor regulate the contract labour system. On the contrary T fear it will give rise to

1319 G of 1—3.

a lot of litigation since various phrases and words will be open to numerous meaning and interpretations, with inadequate system of labour tribunals and courts, the litigation will always go to the benefit of the rich employers who are mostly the contracters in this case and, therefore, the net result will be that the bill will hardly meet the aspirations and hopes of the workers who wanted aboli- tion of the contract labour system and will instead give rise to lot of confusion.

NEW DELHI;

February 20, 1969. SAMARENDRA KUNDU

V

Having gone through all the Memoranda [representations sub- mitted by various organisations, trade unions, federations, Railways, CPWD, Ports and Docks, Coal and Steel Undertakings and also having actually studied conditions of contract labour in the States of Orissa and Andhra Pradesh we are of the opinion that the con- ditions of the labour working under the contract Eystem are far from satisfactory. In some cases labourers, specially women labo- urers, do not get even as much as Rs. 2 per day even after working ior more than 8 to 10 houlrs. There are no satisfactory arrange- ments ot canteen, housing accommodation, medical aid and drink- ing water in certain establishmets.

2. It is true that certain categories of works, specially, the load- ing and unloading work or other works of seasonal nature are not of a uniform work-load and vary from day to day, week to week, and month to month, thus necessitating the employment of contract labour. The Government or public undertakings or other establish- ments cannot afford to keep a certain fixed number of permanent labourers because for a number of days or weeks there will be no work for them. However, it haa been observed that even for main- tenance work of buildings ox other establishments, contract labour is being employed for construction work, white-washing work and on other maintenance jobs. It is desirable that the system of con- tract labour should be abolished totally on maintenance jobs and must immediately be replaced by permanent labour. The dispari- ties in the emoluments and facilities available to permanent labour and the labour working under contract system is so huge and glar- ing, that it is necessary and desirable to abolish contract labour in public interest. The considerations of economy should not out- weigh with the government or public sector undertakings or other

establishments employing contract labour. The problem has to be viewed from a human consideration.

3. The contract labour should continue only in establishments where permanent labour if employed, would have to remain unem- ployed for a considerable perio'd on account of the intermittent nature or seasonal nature of the work. Serious efforts should be made by the Government to employ labour permanently, even where it cost more to the Government and it should be retained only where it is absolutely necessary.

4. The provisions of the Act are applicable to: (a) to every estab- lishment in which 20 or more workmen are employed or were employed on any day of the-preceding 12 months as contract labour; (b) to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen. Keeping in view how the mustet rolls are managed by the contractors,, it will be desirable to reduce the number from 20 to 10 so that contract labour could be abolished even from smaller establishments.

5. Then again in the explanation of Section 1 (5) (b) the work performed in any establishment shall not be deemed to be of an intermittet nature: (i) if it was performed for more than 120 days in the preceding 12 months or (ii) if it is of a seasonal character and is performed for more than 60 days in a year.

6. We suggest that in above sub-para (i) the number 120 days should be reduced to 90 days and in sub-para (ii) it should be reduced to 30 days from 60 days.

7. In clause 2, it is desirable that owing to the steep wage rise In recent times, the raising of wage limit in respect of a workman in a supervisory capacity should be raised from Rs. 500 to Rs, 750. The argument of the government that the question of raising this wage limit in the various labour laws was already under considera- tion of the Ministry was not a cogent and convincing one. A beginnig could be made with this new piece of legislation and this would have provided a precedent for other labour laws to follow.

8. In Clause 15, it is desirable that the appellate officer should be a person having legal qualifications, training of judicial work and a human approach. He should be able to decide appeals in an objective, legal and dispassionate manner. His approach should be legal rather than departmental. Therefore, it would be desirable if the appellate officers are appointed out of retired District Judges or other judicial officers,

9. In Clause 26, the right of filing a complaint has been given to 1he inspector or it has been made subject to his sanction. In fact, the right of filing complaints should be available to trade union workers also and no rider or restrictions should be placed on their right ol. tiling complaints for the breach of the provisions of the Act, in order (o move the appropriate authority. It is also desirable that in Section 26, the period of limitation for filing complaints sliuold be extended to six months because it is likely that some of the contraventions of the provisions of the Act may come to notice after three months,

10. Very wide powers have been invested in the Government under Section 111. for exempting establishments in special circum- stancs from the operation of the provisions of the Act and the entire matter has been left to the sweet will and discretion of the appropriate Government, This provi.sion of law, with uncontrolled and uncanalised power invested in the Government, may be abused bv the appropriate Government in times of emergencies or other serious circumstaces. Some criteria must be laid down and the contingencies in which this Section is to be utilised have to be specifically mentioned to avoid abuse of this provision of law.

NEW DELHI; SHRI CHAND GOYAL

VcbrutVy 22, ] 1.169. HUKAM CHAND KACHWAI

PREM MANOHAR

R. S. VIDYARTHI

BUI No. 108-B of ;967

THE CONIRACT LABOUR (REGULATION ANU ABOLITION) BILL, 1967

ARRANGEMENT OF CLAUSES

CHAPTER I

PRELIMINARY

CLAUSES

1. Short title, extent, commencement and application.

2. Definitions.

CHAPTER II

THE ADVISORY BOAKDS

3. Central Advisory Board.

4. State Advisory Board.

5. Power to constitute committees.

CHAPTER III

REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LAUOUH

6. Appointment of registering officers.

7. Registration of certain establishments,

8. Revocation of registration in certain case;.

9. Effect of non-registration.

10. Prohibition of employment of contract labour.

CHAPTER IV

LICENSING OF CONTRACTORS

11. Appointment of licensing officers.

12. Licensing of contractors.

13. Grant of licences.

14. Revocation, suspension and amendment of licences.

15, Appeal,

CHAPTER V

WELFARE AND HEALTH OF CONTRACT LABOUR

CLAUSES

16. Canteens.

17. Rest-rooms.

18. Other facilities.

19. First-aid facilities.

20. Liability of principal employer in certain cases.

21. Responsibility for payment of wages.

CHAPTER VI

PENALTIES AND PROCEDURE

22. Obstructions.

23. Contravention of provisions regarding employment ot con- tract labour.

24. Other offences,

25. Offences by companies.

26. Cognizance of offences.

27. Limitation of prosecutions.

CHAPTER VII

MISCELLANEOUS

2b. Inspecting stalf.

29. Registers and other records to be maintained.

30. Effect of laws antl agreements inconsistent with this Act. 31. Power to exempt in special cases.

32. Protection of action taken under this Act.

33. Power to give directions.

34. Power to remove difficulties.

35. Power to make rules.

BiirHVo. io8-B of 1967

THE CONTRACT LABOUR (REGULATION AND ABOLITION) BILL, 1967

(AS RETORTED BY THE JOINT COMMITTEE)

[Words underlined indicate the amendments suggested by the

Committeej asterisks indicate omission.']

A

BILL

to regulate the employment of contract labour in certain estab-

lishments and to provide for its abolition in certain circum-

stances and for matters connected therewith.

BE it enacted by Parliament in the Twentieth Year of the

Republic of India as follows: —

CHAPTER I

PRELIMINARY

5 1. (1) This Act may be called the Contract Labour (Regulation

and Abolition) Act, 1969.

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

and Kashmir.

Short title, extent, com- mence ment and applica- tion.

(3) It shall come into force on such date as the Central Govern- . ment may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.

(4) It applies—.

(a) to every establishment in which twenty or more worn- men are employed or were employed on any day of the preced- ing twelve months as contract labour;

3 (b) to every contractor who employs or who employed on any dav of the preceding twelve months twenty or more workmen:

10 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 estab- lishment or contractor employing such number of workmen less than twenty as may be specified in the notification.

(5) (a) It shall not apply to establishments in which work only of an intermittent or casual nature is performed.

15 (b) If a question arises whether work performed in an estab- lishment is of an intermittent or casual nature, the appropriate Government shall decide that question after consultation with the Central Board or, as the case may be, a State Board, and its decision shall be final.

20 Explanation,—For the purpose of this sub-section, work per- formed in an establishment shall not be deemed to be of an inter- mittcnt nature—•

(i) if it was performed for more than one hundred and

twenty days in the preceding twelve months, or

(it) if it is of a seasonal character and is performed for more

25 than sixty days in a year.

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

Defini- tions.

(a) "appropriate Government" means,—

(2) in relation to—

30 (i) any establishment pertaining to any industry carried on by or under the authority of the Central Government, or pertaining to any guch controlled in- dustry as may be specified in this behalf by the Cen- tral Government, or

(ii) any establishment of any railway, Cantonment 35 Board, major port, mine or oil-field, or

(Hi) any establishment of a banking or insurance company,

the Central Government,

(2) in relation to any other establishment, the Govern- ment of the State in which that other 'establishment is situated;

5

(b) a workman shall be deemed to be employed as "con- tract labour" in or in connection with the work of an establish- ment 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;

10

(c) "contractor", in relation to an establishment, means a person who undertakes to produce a given result for the estab- lishment, other than a mere supply of goods or articles of manu- facture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor;

15

(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;

(e) "establishment" means—

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

20

(ii) any place where any industry, trade, business, manufacture or occupation is carried on; (f) "prescribed" means prescribed by rules made under thia Act; '

(g) "principal employer" means—

25

(i) in relation to any office or department of the Gov- ernment or a local authority, the head of that office or de- partment or such other officer as the Government or the local authority, as the case may be, may specify in this be- half.

30

35

(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, the person so named, (in) 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 suib-clause (iii) of this 40 clause, the expressions "mine", "owner" and "agent" shall have me meanings respectively assigned to them in clause (j), clause

1319 G. of I.—4.

35 of 1882

(I) and clause (c) of sub-section (1) of section 2 of the Mines Act, 1952;

(h) "wages" snail have the meaning assigned to it in clause

4 of 1936.

(tri) of section 2 of the Payment of Wages Act, 1936;

5 (i) "workman" means any person employed in or in con- nection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or cle- rical work for hire or reward, whether the terms of employ- ment be express or implied, but does not include any such person—

10

(A) who is employed mainly in a managerial or admin- istrative capacity; or

15 (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; or

2o

25 (C) who is an out-worker, that is to say, a person to whom any articles or materials are given out by or on be- half of the principal employer to be made up, cleaned, wash- edT altered, ornamented, finished, repaired, adapted or other- wise 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.

CHAPTER II

THE ADVISORY BOARDS

Central

Advisory

Boird.

3. (I) The Central Government shall, as soon as may he, constitute n. 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 administration of this Act as may be referred to it and to carry out other functions assigned to it under this Act.

(2) The Central Board shall consist of^

35 (o) a Chairman to be appointed by the Central Govern- ment;

(b) the Chief Labour Commissioner (Central), ex offido;

(c) such number of members, not exceeding seventeen but

40 not less than eleven, as the 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 Central Government, oughi to be represented on the Central Board.

5

(3) The number of persons to be appointed as members from each 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 vacan- cies among, the members of the Central Board shall be such as may be prescribed:

Provided that the number of members nominated to represen.1

the workmen shall not be less than the number of members noml- 10

tiated to represent the £ rincipal employers and the contractors.

! Stato 1 Advisory , Board.

15

4- (2) The State Government may constitute a board to be called 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;

2.0

(b) the Labour Commissioner, ere ofjicio} or in his absenc* any other officer nominated by the State Government in that behalf;

²5

(c) such number of members, not exceeding eleven bui not less than nine, as the Central Government may nominate to represent that Government, the industry, the contractors, the work- men and any other interests which, in the opinion of the State Gov- ernment, ought to be represented on the State Board.

30

(3) The number of persons to be appointed as members from each 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 vacan- cies among, the members of the State Board shall be such as may se prescribed:

Provided that the number of members nominated to represent

the workmen shall not be less than the number 01 members nomi-

nated to represent the principal employers and the contractors.

35

5. (1) 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.

Power to constitute commit^ tees.

^2) The committee constituted under sub-section (1) shall meet at 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.

(3) The members of a committee shall be paid such fees and 5 allowances for attending its meetings as, may be prescribed:

Provided that no fees shall be payable to a member who is an officer of Government or of any corporation established by any law for the time being In force.

10

CHAPTER III

REGISTRATION OP ESTABLISHMENTS EMPLOYING CONTRACT LABOUR

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

Appoint-

ment oi

register-

Ing

offlcera.

15 (a) appoint such persons, being Gazetted Officers of Govern- ment, as it thinks fit to be registering officers for the purposes ol this Chapter; and

(b) define the limits, within which a registering officer shall exercise the powers conferred on him by or under this Act.

20 Registra- tion of certain establish- ments.

7. (1) Every principal employer of an establishment to which this Act applies shall, within such period as the appropriate Gov- ernment may, by notification in the Official Gazette, fix in this be- half with respect to establishments generally or with respect to any class of them, make an application to the registering officer in the prescribed manner for registration of the establishment:

Z5 Provided that the registering officer may entertain any such application for registration after expiry of the period fixed In this behalf, if the registering officer is satisfied that the applicant was prevented by sufficient cause from making the application in time.

3° (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 registra- tion containing such particulars as may be prescribed.

35 Revoca- tion of reglotra- tion In certain

CRBQS.

40 8. If the registering officer is satisfied, either on a reference made to him In this behalf or otherwise, that the registration of any establishment has been obtained by misrepresentation or suppres- sion of any material fact, or that for any other reason the registra- tion 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 establishment 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—

5

(a) in the case of an establishment required to be register- ed 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 res-

pect of which has been revoked under section 8,

10

employ contract labour in the establishment after the expiry of the period referred to in clause (a) or after the revocation of registra- tion referred to in clause (b), as the case may be.

10. (1) Notwithstanding anything contained in this Act, the appropriate Government may, after consultation with the Central Board or, as the case may be, a State B"ard, prohibit, by notification in the Official Gazette, employment of contract labour in *ny pro- cess, operation or other work in any establishment.

Prohibi- tion of employ- ment of contract labour.

15

(2) Before issuing any notification under sub-section (1) in rela- tion to an establishment, the appropriate Government shall have regard to the conditions of work and benefits provided for the con- tract labour In that establishment and other relevant factors, such

HB—

20

(a) whether the process, operation or other work is inci- dental to, or necessary for the industry, trade, business, manu- facture or occupation that is carried on in the establishment;

25

(b) whether it is of perennial nature, that is to say, it is of sufficient duration having regard to the nature of industry, trade, business, manufacture or occupation carried on in that establishment;

(c) whether it is done ordinarily through regular workmen

in that establishment or an establishment similar thereto;

30

(d) whether it is sufficient to employ considerable num- ber of whole-time workmen.

Explanation.—If a question arises whether any process or ope- ration or other work is of perennial nature, the decision of the appropriate Government thereon shall be final.

CHAPTER IV

35

LICENSING OF CONTRACTORS

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

A.ppolnt- ment of licensing officera.

40

(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.

5 Licensing of contrac tors.

12. (1) With effect from such date as the appropriate Govern- - nent may, by notification in the Official Gazette, appoint, no con- tractor to whom this Act applies, shall undertake or execute any work through contract labour except under and in accordance with a licence issued in that behalf by the licensing officer.

10

15 (2) Subject to the provisions of this Act, a licence under sub- section (2) may contain such conditions including, in particular, conditions as to hours of work, fixation of * * wages and other essential amenities in respect of contract labour as the appro- priate Government may deem fit to impose in accordance with the rules, if any, made under section 35 and shall be issued on pay- ment of such fees and o'n the deposit of such sum, if any, as secu- rity for the due performance of the conditions as may be prescribed.

Grant of licences.

20 13. (1) Every application for the grant of a licence under sub- section (1) of section 12 shall be made in the prescribed form a'nd shall contain the particulars regarding the location of the establish- ment, the nature of process, operation or work for which contract labour is to be employed and such other particulars as may be prescribed.

25 (2) The licensing officer may make such investigation in respect of the application received under sub-section (1) and in making any such investigation the licensing officer shall follow such proce- dure as may be prescribed.

(3) A licence granted under this Chapter shall be valid for the period specified therein and may be renewed from time to time for such period and on payment of such fees and on such conditions as may be prescribed.

3° 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 obtained

by misrepresentation or suppression of any material fact, or

35 Revoca- tion, sus- pension and amend- ment of licences.

(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 Act or the rules made thereunder,

40 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 the holder of the licence an opportunity of show- ing cause, revoke or suspend the licence or forefeit the sum, if any,

or any portion thereof deposited as security for the due perfor- mance of the conditions subject to which the licence has been granted.

5

(2) Subject to any rules that may be made in this behalf, the licensing officer may vary or amend a licence granted under section 12.

Appeal.

ro

15. (1) 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 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.

15

(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the appellant an opportunity of being heard dispose of the appeal as expeditiously as possible.

CHAPTER V

20

WELFARE AND HEALTH OF CONTRACT LABOUR

16. (1) The appropriate Government may make rules requiring Canteen* that 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 25

(c) wherein contract labour numbering one hundred or more is ordinarily employed by a contractor,

one or more canteens shall be provided and maintained by the contractor for the use of such contract labour.

(2) Without prejudice to the generality of the foregoing power, 30

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 tha standards in respect of construction, accommodation, furniture Mid other equipment of the canteens; and

35

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

17. (1) In every place wherein contract labour is required to halt at night in connection with the work of an establishment—

(a) to which this Act applies, and

5

(b) in which work requiring employment of contract labour 1B likely to continue for such period as may be pres- cribed,

[0 there shall be provided and maintained by the contractor for the use of 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 pro- vided under sub-section (I) shall be sufficiently lighted and venti- lated and shall be maintained in a clean and comfortable condition. 15

Other facilities.

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;

20

(b) a sufficient number of latrines and urinals of the pres- cribed types so situated as to be convenient and accessible to the contract labour in the establishment; and

(c) washing facilities.

25 First- aid facilities.

19. There shall be provided and maintained by the contractor so as to be readily accessible during all working hours a first-aid box equipped with the prescribed contents at every place where con- tract labour is employed by him.

30 Liability of prin- cipal em- ployer in certain cases.

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 con- tractor within the time prescribed therefor, such amenity shall be provided by the principal employer within such time as may be prescribed.

35 (2) All expenses incurred by the principal employer in provid- ing the amenity may be recovered by the principal employer from the contractor either by deduction from any amount payable to tht

contractor under any contract or as a debt payable by the contrac-

5

21. (I) A contractor shall be responsible for payment of wages Lo each worker empleyed by him as contract labour and such wages ihall be paid before the expiry of such period as may be prescribed.

-Kesponat. bllity for payment of wages.

lo

(2) Every principal employer shall nominate a representative luly authorised by him to be present at the time of disbursement >f wages by the contractor and it shall be the duty of such repre- sentative to certify the amounts paid as wages in such manner as may be prescribed.

(3) It shall be the duty of the contractor to ensure the disburse- ment of wages in the presence of the authorised representative of the principal employer.

t5

30

(4) In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the inpaid balance due, as the oase may be, to the contract labour amployed by the contractor 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 contrac- tor.

CHAPTER VI

PEKTAtteS AND PROCEDURE

Obstruc- tions.

25

3o

22. (1) Whoever obstructs an inspector in the discharge of his duties under this Act or refuses or wilfully neglecjs to afford the Inspector any reasonable facility for making any inspection, exa- mination, inquiry or investigation authorised by or under this Act in relation to an establishment to which, or a contractor to whom, thifl 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.

35

(2) Whoever wilfully refuses to produce on the demand of an inspector any register or other document kept in pursuance of this Act or 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 pur- suance of his duties under this Act, shall be punishable with im- prisonment for a term which may extent! to three months, or with fine which may extend to five hundred rupees, or with both.

5 Contra- vention o: provision regard- ing em- ployment of con- tract labour.

Z3. Whoever contravenes any provision of this Act or of any rules made thereunder prohibiting, restricting or regulating the employ- nent of contract labour, or contravenes any condition of a licence jranted 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 rupees, or with both, and in the case of a continuing contravention with an additional fine which may extend to

10 Other offences.

24. If any person contravenes any of the provisions of this Act or of any rules made thereunder for which no other penalty is else- where provided, he shall be punishable with imprisonment for a term which may extent! to three months or with fine which may extend to one thousand rupees, or with both.

Offences by com- panies.

25. (1) If the person committing an offence under this Act Is ,8 company, the company as well as every person in charge of, and responsible to, 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 proceeded against and punished accordingly:

20

Provided that nothing contained in this sub-section shall rendei any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

²5

30

r (2) Notwithstanding anythdng contained in sub-section (I), where an ofTenoe under this Act has been committed by a companj and it ia proved that the offence has been committed with the consen or connivance of, or that the commission of the offence is attributablt to any neglect on the part of any director, manager, managing agen' or any other officer of the company, such director, manager, manag Ing agent or such other officer shall also be deemed to be guilty o: that offence and shall be liable to be proceeded against and punish ed accordingly.

Explanation,—For the purpose of this section—

(a) "company" means any body corporate and includes e 35

firm or other association of individuals; and

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

firm.

Cognlm- anca of oflencei.

5

26. No court shall take cognizance of any offence under this Act except 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 magistrate of the first class shall try any offence punishable under this Act.

Limitation of prose- cution*.

27. No court shall take cognizance of an 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 knowledge of an inspector:

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

15

W. (2) The appropriate Government may, by notification in the Official Gazette, appoint such person:, as it thinks fit to be ins- pectors for the purposes of this Act, and define the local limits with- in which they shall exercise their powers under this Act.

20 (2) Subject to any rules made in this behalf, an inspector may, within the local limits for which he is appointed—

25

(a) enter, at all reasonable hours, with such assistance (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 made thereunder, and require the production thereof for inspection;

30

(b) examine any person whom he finds in any such premis- es or place and who, he has reasonable cause to believe, is a workman employed therein;

35

(c) require any person giving out work and any workman, to give any information, which is in his power to give with respect to the names and addresses of the persons to, for and from whom the work is given out or received, and with respect to the payments to be made for the work;

(d) seize or take copies of such register, record of wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by the principal employer or contractor; and

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

5

40 of 186C (3) Any person required to produce any document or thing 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 section 176 of the Indian Penal Code.

1O 5 of 1898.

(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.

15 29. (1) Every principal employer and every contractor shal] maintain such registers and records giving such particulars of con- tract labour employed, 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.

Registers and other records to be maintain- ed.

2 • (2) Every principal employer and every contractor shall keej exhibited In such manner as may be prescribed within the premises of the establishment where the contract labour is employed, notices in the prescribed form containing particulars about the hours o± work, nature of duty and such other information as may be pres- cribed.

25 30. (I) The provisions of this Act shall have effect notwithstand- ing anything inconsistent therewith contained in any other law OJ In the terms of any agreement or contract of service, or in any stand- Ing orders applicable to the establishment whether made before o] after the commencement of this Act:

Provided that where under any such agreement, contract of ser.

3° Effect of laws and agree- ments inconsis- tent with this Act

i

• 35 vice or standing orders the contract labour employed in the estab lishmtent are entitled to benefits in respect of any matter which an more favourable to them than those to which they would be entitlec under this Act, the contract labour shall continue to be entitled t< the more favourable benefits in respect of that matter, not withstand ing that they receive benefits in respect of other matters under thi Act.

(2) Nothing contained in this Act shall be construed as preclud Ing any such contract labour from entering into an agreement wit]

the principal employer or the contractor, as the case may be, for granting them rights or privileges In respect of any matter which are more favourable to them than those to which they would be entitled under this Act,

5

Power to axempt In ipecial cases.

10

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 establishment or class of establishments or any class of contractors.

15

Protection erf action taken under this Act. 32. (1) No suit, prosecution or other legal proceedings shall lie against any registering officer, licensing officer or any other Govern- ment servant or against any member 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 pursuance of this Act or any rule or order made thereunder.

20

(Z) 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 Government may give directions to the Govern- Power to give llrectioni.

ment of any State as to the carrying into execution in the State of the provisions contained in this Act.

25

Power to remove ilfflcultlei 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, make such provisions not Inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for remov- ing the difficulty.

Powar a male* rule*. 35. (1) The appropriate Government may, subject to the condi- tion of previous publication, make rules for carrying out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the fol- lowing matters, namely: —

35

(a) the number of persons to be appointed as members representing various interests on the Central Board and the

State Board, the term of their office and other conditions o service, the procedure to be followed in the discharge of thei: functions and the manner of filling vacancies;

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

h-5

if constituted under this Act, the procedure to be followed at suet meetings including the quorum necessary for the transaction oi business, and the fees and allowances that may be paid to the e members of a committee;

f 10

a (c) the manner in which establishments may be registerec under section 7, the levy of a fee therefdr and the form oi certificate of registration;

(d) the form of application for the grant or renewal of a a licence under section 13 and the particulars it may contain;

1 (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;

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

25 (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;

(i) the time within which facilities required by this Act to be provided and maintained may be so provided by the con- tractor and in case of default on the part of the contractor, by '• the principal employer;

30

(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 boxes;

(I) the period within which wages payable to contract 3

35 labour should be paid by the contractor under sub-section (1) of section 21;

(m) the form of registers and records to be maintained by principal employers and contractors;

(n) the submission of returns, forms in which, and the authorities to which, such returns may be submitted;

5

(0) the collection of any information or statistics in relation to contract labour; and

(p) any other matter which has to be, or may be, prescribed under this Act.

10

15

(3) Every rule made by the Central Government under this Act shall be laid as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

S. L. SHAKDHER,

Secretary.