Objections and suggestions on the amendment in the Contract labour (R&A) Act, 1970


Dear Members,


GOI has proposed certain amendments to the Contract labour (R&A) Act, 1970. The draft is being studied in details at SIA, and as usual we will have rounds of workshops to form and consolidate views of the Industries of the UT.


Prime facie, the amendment seeks following changes:

1.       Now contractor’s regular workers deployed at site of PE in connection with work of PE’s establishment will not be treated as contract labour. It will have major implications. On the prohibited category, it seems that only casual kind of workers of the contractor will be prohibited. After, this amendment, DNH Administration should not have objections in working of contractors regular workers on machines of PE.

2.       Mere supply of the labour will not be treated as a bad contract....now it further clarifies that supply of labour as mere human resources will also be within the scope of the word ‘contractor’.

3.       The wage limit for supervisors to be a workman under the Act, which at present is Rs 500/-, will be removed. Instead, Government is seeking powers to notify it time to time. It will not affect industries much.

4.       For securing licence, Contractors will be able to go for bank guarantee instead of cash deposits. This is a welcome change.

5.       After the amendment, licences can be issued for three years. It means government in principle accept the existence of contract labour for long durations.

6.       Copy of work order will have to forward to appropriate government by the contractor.

7.       In the canteen, rest room and other facilities of PE, same facilities for contract labour will be made available. 

8.       No certification of PE on payment of wages to the contract labour by the contractor would be mandatory, where wages are paid through electronic media.

9.       Penalty for contraventions has been increased, but, compounding has been provided.

We request members to study it further and if they notice any significant provision is being amendment, please report it to SIA for consolidating objections and suggestions at SIA level.        

For more information, queries are welcome to Mr. P K Jadia, Executive Secretary, SIA, 09687625260




Atul R  Shah