If a question arises whether the work performed in an establishment 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. The judges formulated the principle that a contract labourer who is working for a company in a work of perennial nature has to be absorbed by the industry. Here it can be seen that the court totally relied upon the provisions of the Act as it nowhere says about the absorption of the contract labourers after its abolishment. Whether the persons recruited from an outside State. Government in that behalf ; c such numbers, not exceeding eleven but not less than nine, as the State 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.
United Labour Union and Ors. Cost-cutting should be done by increasing productivity by way of modernization, and using advanced technology, and not by oppressing and exploiting manpower. Union of India, there was arbitrariness in classifying 1000 workers out of the 16,000 odd workers as contract labourers and thereby receiving salary lesser than that of the directly employed workmen. It has been clearly held that upon abolishment of contract labor, workers who were working in such capacity will directly get absorbed into the mainstream workforce of the establishment. The Supreme Court expressed its contrary view in Air India Statutory Corporation v.
The premium which is paid to the contractor supplying contract labour in a stringent labour situation is accepted as an inevitable cost without any grudge. It would not be erroneous to say that the Court interpreted the Act in an accurate manner i. A Principal Employer is liable to compensate underpaid contract labour. One may recall the notorious strike at the Manesar factory of Honda Motorcycle and Scooter India Ltd. The report submitted by the Committee is placed before the Central Advisory Contract Labour Board and keeping in view the recommendations of the Board, the Central Government takes a decision on the matter. The judges here used the freedom which the common law system confers upon them that is to look into the objective of a matter and device new principles which could suit justice.
Therefore they required an Act which completely dealt with the regulations of the contract labour. It established in light of the situation that albeit the entire share capital was vested in the name of President of India, and its nominees and extensive control were vested in the Central Government, it did not make the organization in question an industry carried on under the authority of Central Government. Well the minimum wage through the licensing of the contractors and the second thing that this act is looking to enforce is holding the principle of the business accountable for the enforcement of the law. Who is empowered to prohibit the employment of contract labour in an industry or trade? Display of Notice rate of wages, hours of work, wage period, date of payment of wages, date of payment of unpaid wages and name and address of the inspector having jurisdiction. When challenged by the employees through their union before the high court , it was held that the government was right in declining the reference since the jurisdiction lies with the appropriate government. Video Transcript Welcome, this is Lloyd Lofton, and today we're just going to briefly comment on the Contract Labor Act of 1970.
They devised the principle that a contract labourer who is working for a company in a work of perennial nature has to be absorbed by the industry. In West Bengal the number of workmen is 10 or more. Labourers Working on Salal Hydro Project v. Registration of certain establishments 8. If the contractor fails to pay wages to any worker, the principal employer has been made duty bound to pay the same.
Forms and terms and conditions of licence. The above ratio was upheld in the decisions of Hindustan Aeronautics Ltd. This only means more contract labour, more casual labour, fewer rights for unionisation etc. Such license has certain conditions such as hours of work, fixation of wages and provision of certain essential amenities etc. Labour administration is one of the most crucial tasks of an entrepreneur. The law mandates that every establishment to which the Act applies has to register with the registering officer.
No doubt a principal employer is liable to pay wages to the employees of the contractor if the latter fails to make payment of wages to his employees. Further, if the contention of the petitioner is accepted that they have become the employees of the principal employer as the provisions of sections 7 and 12 have been contravened, it may amount to their entry into service through back door in contravention of service rules and other provisions for employment. An Article by J Kanakiah on Contract Labour 4. The above issue had to be dealt by the court in almost every case relating to the contract labour because in the establishments where contract labour was abolished owing to the application of the Act, these labourers wanted to get absorbed in the establishment directly. Now if the object had to be achieved the Act should have been more expressive because on issues like this there has to be certain guidelines provided by the legislation otherwise these labourers may keep on being exploited. In Senior Regional Manager, Food Corporation of India, Calcutta v. In a case it has been held that even the Supreme Court is not empowered to issue orders for prohibition of contract labour but it can issue directions to the appropriate government to consider whether the employment of contract labour should not be prohibited under section 10 of the Act.
Payment through khatedars after deducting any advance repayable by the workers to the khatedars or any messing charges etc. The work site may or may not belong to the Principal Employer, but that will not stand in the way of application of the Act or in holding that a place or work site where industry, trade, business, manufacture or occupation is carried out is not an establishment. The Act, in totality, is directed towards the welfare of contract labourers but it fails to effectively address and suggest a remedy for the anxiety of contract labourers pertaining to the aforementioned issue. Wages due to every worker shall be paid to him direct or to other person authorised by him in this behalf. In respect of other categories, the service conditions of contract labour are sought to be regulated. From then onwards up to the setting up of the Royal Commission of Labour in 1929, most of the protective and ameliorative measures can be characterized as sporadic, limited and half-hearted. On the hand, in the state sphere, the labour department of the state government concerned does this work.
Contract labourers are entitled to the same wages, holidays, hours of work, and conditions of service as are applicable to the directly employed workmen by the principal employer. As stated previously, although the Act aims at the regulation of contract labor, its end goal is the abolition of the same. Furthermore contravention of sections 7 and 12 is an offence. On the above issue there has been a varying opinion of the courts. Explanation : If a question arises whether any process or operation or other work is of perennial nature, the decision of the appropriate Government thereon shall be final.