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Questions and Answers
A principal employer hires 15 contract labourers through a contractor. Under what circumstances would the Contract Labour Act apply to this establishment?
A principal employer hires 15 contract labourers through a contractor. Under what circumstances would the Contract Labour Act apply to this establishment?
- The Act does not apply because the establishment employs less than 20 contract labourers. (correct)
- The Act applies if the contractor has more than 20 employees across multiple establishments.
- The Act applies regardless of the number of contract labourers if the establishment is deemed hazardous.
- The Act applies if the number of employees, including direct hires, exceeds 20.
A contractor fails to pay the contract labourers the wages as prescribed for regular employees doing the same job. What recourse do the contract labourers have under the Contract Labour Act?
A contractor fails to pay the contract labourers the wages as prescribed for regular employees doing the same job. What recourse do the contract labourers have under the Contract Labour Act?
- The contract labourers have no recourse under the Act, as wage negotiation is solely between the contractor and labourers.
- The contract labourers can directly file a lawsuit against the principal employer.
- The contract labourers must negotiate directly with the principal employer for wage adjustments.
- The contract labourers can approach the Labour Court for disputes regarding wages. (correct)
An establishment registered under the Contract Labour Act decides to provide a better canteen facility to its contract labourers than what is prescribed under the Act. How does this impact their obligations under the Act?
An establishment registered under the Contract Labour Act decides to provide a better canteen facility to its contract labourers than what is prescribed under the Act. How does this impact their obligations under the Act?
- The establishment can claim an exemption from certain inspections due to the enhanced facilities.
- The establishment can request a reduction in other welfare amenities to offset the cost.
- The establishment can deregister under the Act, as they are providing facilities beyond the mandated requirements.
- The establishment is still obligated to adhere to all minimum requirements outlined in the Act, in addition to the enhanced facility. (correct)
A Central Advisory Board is constituted under the Contract Labour Act. Which of the following best describes its primary function?
A Central Advisory Board is constituted under the Contract Labour Act. Which of the following best describes its primary function?
A contractor's license is suspended due to non-compliance with the Contract Labour Act. What is the immediate implication for the contract labourers employed by this contractor?
A contractor's license is suspended due to non-compliance with the Contract Labour Act. What is the immediate implication for the contract labourers employed by this contractor?
An inspector appointed under the Contract Labour Act visits an establishment and identifies several discrepancies in the maintenance of registers. What action can the inspector take?
An inspector appointed under the Contract Labour Act visits an establishment and identifies several discrepancies in the maintenance of registers. What action can the inspector take?
The appropriate government prohibits contract labour in a specific process at an establishment. What is the expected outcome for the contract labourers engaged in that process?
The appropriate government prohibits contract labour in a specific process at an establishment. What is the expected outcome for the contract labourers engaged in that process?
A principal employer argues that they should be exempt from providing restrooms for contract labourers because the work area is close to a public restroom. Is this a valid reason for exemption under the Contract Labour Act?
A principal employer argues that they should be exempt from providing restrooms for contract labourers because the work area is close to a public restroom. Is this a valid reason for exemption under the Contract Labour Act?
A contractor displays a notice at the worksite that includes the contractor's name and address, and the wage rates for the contract labourers. What additional information is required to be displayed according to the Contract Labour Act?
A contractor displays a notice at the worksite that includes the contractor's name and address, and the wage rates for the contract labourers. What additional information is required to be displayed according to the Contract Labour Act?
Under the Contract Labour Act, what is the penalty for contravention of provisions for which no specific penalty is provided elsewhere in the Act?
Under the Contract Labour Act, what is the penalty for contravention of provisions for which no specific penalty is provided elsewhere in the Act?
Flashcards
Contract Labour Act, 1970
Contract Labour Act, 1970
An Act passed in 1970 to regulate contract labour in India.
Contract labour
Contract labour
Workmen hired by or through a contractor, with or without the knowledge of the principal employer.
Principal Employer
Principal Employer
The person responsible for the supervision and control of the establishment employing contract labour.
Act Applicability
Act Applicability
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Registration Requirement
Registration Requirement
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Licensing of Contractors
Licensing of Contractors
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Advisory Boards
Advisory Boards
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Payment of Wages Responsibility
Payment of Wages Responsibility
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Abolition of Contract Labour
Abolition of Contract Labour
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Rights of Contract Labour
Rights of Contract Labour
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Study Notes
The Contract Labour (Regulation and Abolition) Act, 1970
- An act of the Parliament of India passed to regulate contract labour in India.
Applicability
- Applies to establishments/contractors with 20 or more workmen.
- Doesn't apply to work of an intermittent or casual nature.
Definitions
- "Contract labour" refers to workmen hired by or through a contractor, with or without the knowledge of the principal employer.
Registration of Establishments
- Principal employers must register their establishments if they employ 20 or more contract labourers.
Licensing of Contractors
- Contractors must obtain a license to supply contract labour.
Advisory Boards
- Central and State Advisory Boards are constituted to advise the government on matters related to the Act.
Welfare and Health
- The Act provides for facilities like drinking water, restrooms, first aid, and canteens.
Payment of Wages
- The contractor is responsible for paying wages to contract labourers.
- The principal employer must ensure that wages are correctly paid.
Penalties
- It includes imprisonment and fines.
Abolition of Contract Labour
- The appropriate government can prohibit contract labour in certain processes/operations.
Rights of Contract Labour
- Contract labourers are entitled to the same wages, hours of work and other conditions of service as regular employees.
Inspectors
- The appropriate government appoints inspectors to ensure compliance with the provisions of the Act.
Exemptions
- The appropriate government may grant exemptions from the provisions of the Act.
Miscellaneous
- The Act provides for display of notices, registers, and other records.
Amendments
- Note any significant amendments to the Act after its enactment.
Objectives
- The main objectives of the Act are to regulate the employment of contract labour and to provide for its abolition under certain circumstances.
Key Provisions
- Registration of establishments employing contract labour.
- Licensing of contractors.
- Welfare and health amenities for contract labour.
- Payment of wages to contract labour.
- Prohibition of contract labour in certain circumstances.
Contract Labour
- A worker is hired by or through a contractor.
- They may or may not be supervised by the principal employer.
Principal Employer
- The person responsible for the supervision and control of the establishment.
Appropriate Government
- Central Government: Industries carried on by or under the authority of the Central Government.
- State Government: Industries where the appropriate government is the State Government.
Registration Requirement
- Establishments with twenty or more workmen.
Licensing Requirement
- Contractors employing twenty or more workmen.
Revocation/Suspension of License
- License can be revoked or suspended for contravention of provisions.
Canteens
- If employing 100 or more contract labourers.
Rest-Rooms
- Adequate rest-rooms should be provided.
Other Facilities
- There should be sufficient supply of wholesome drinking water.
- There should be a sufficient number of latrines and urinals.
Payment of Wages
- Contractor is responsible for payment.
- Principal employer ensures payment in the presence of his authorized representative.
Wage Rates
- Same as prescribed for regular employees.
Disputes Regarding Wages
- Labour Court has jurisdiction over disputes.
Penalties
- Imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both.
Abolition of Contract Labour
- Government can prohibit contract labour through notification.
Criteria for Abolition
- Nature of work.
- Conditions of work.
- Benefits available to workmen.
Effect of Prohibition
- Contract labourers are deemed employees of the principal employer.
Rights After Abolition
- Absorption as regular employees.
Constitution of Boards
- Central and State Boards.
Composition of Boards
- Consists of representatives of employers, workmen, and the Government.
Functions of Boards
- Advise the Government.
Inspectors
- Appointed by the appropriate Government.
Powers of Inspectors
- Can enter premises.
- Can examine records.
- Can seize documents.
Obligations of Contractor
- Must obtain license.
- Must provide facilities.
- Must pay wages.
Obligations of Principal Employer
- Register establishment.
- Ensure amenities.
- Ensure wage payments.
Exemption Power
- Appropriate Government can grant exemptions.
Conditions for Exemption
- Depends on the specific case.
Display of Notices
- Notices showing the name and address of the contractor, nature of work, and rates of wages must be displayed.
Maintenance of Registers
- Registers showing particulars of contract labour employed, wages paid, etc., must be maintained.
Amendment Procedures
- Amendments to the Act are made through legislative processes.
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