Articles
The Contract Labour Registration Act
by Shalini Laxmish Digital Marketing ExecutiveThe Contract Labour Registration Act (CLRA) was introduced in 1970 for the welfare of the contract labourers. It is driven towards the well-being of contract workers so that they are provided with better work conditions and are not exploited in any manner.
CLRA applies to:
- To every corporation where 20 or more (this is varied in a few States) workers are contracted on any day of the past 12 months.
- To every contractor, who employed 20 or more workmen (this is varied in a few States) on any day of the past 12 months.
Major Objectives of Contract Labour Act
The major objectives of the Contract Labour act is to prevent employee exploitation and to introduce better working conditions. Here are some of the major objective attributes of this act.
- Provide legislative protection to contract workers
- Provide basic amenities to the workers
- Allowing the government to apply the provision to the act to any establishments or contractors by giving a 2 months period of notice.
Provisions of Contract Labour Act
- Principal employer registration
- Contractor licensing
- Health and welfare of contractual employees
- Penalties and similar procedures
- Miscellaneous actions under the act
History of CLRA
A case held in 1960 against Standard Vacuum Refining Company by its workforce led to the foundation on CLRA act in India. For the case, The Supreme Court of India delivered a monumental judgment assuring the well being of the interests of contract workers. The judgement consisted of stern guidelines and regulations regarding the contractual labour. This also clarified the abolishment of unnecessary works and assignments.
This case acted as a foundation for the Contract Labour (Regulation & Abolition) Act which came to being 10 years after. The bill was drafted by The Ministry of Labour and Employment after obtaining guidance and recommendations from a tripartite committee. The bill was examined at the 23rd session of the Indian Labour Conference in 1965. It was passed by the president on 5th September 1960 after introducing it to the parliament in 1967 and referred to a joint parliament committee in 1968. The CLRA came into effect 5 months after it was passed by the President in February 1971.
Role of CLRA for the Principal employer
The liability for compliance of all permanent employees and contract or employees falls on the principal employer. Failure to adhere to CLRA and related labour legislation attract penalties. The CLRA license is applicable to the contractor while the CLRA registration is mandatory for the principal employer. While considering an external agency for contractual hiring, companies must keep this in mind and should check whether the contractor fulfils all obligations under the CLRA licence.
A principal employer cannot employ a contract worker directly unless they gain CLRA registration from the government. If a principal employer violates the legislation, they can be imprisoned for 3 or more months and will also be charged with a fine of Rs.1000/-.
A principal employer should be aware of the liabilities they should bear as part of the CLRA act. The employee welfare is the first priority under this act and it includes necessities and benefits like availability of washrooms, commissaries, first aid, physical safety, drinking water, etc. In case if the contractor fails to assure such facilities for employees, it falls on the principal employer to assure the same. Every organization employing contractual workers must be aware and should keep compliance with this act to ensure the employee welfare and smooth running of the organization.
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About Shalini Laxmish 
Digital Marketing Executive
2 connections, 0 recommendations, 15 honor points.Joined APSense since, January 8th, 2018, From Bangalore, India.
Created on May 13th 2020 12:30. Viewed 464 times.
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