Contract Labour (Regulation & Abolition) Act

Registration of Establishments employing Contract Labour

Section 10: Prohibition of employment of contract labour

(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 Board, prohibit, by notification in the Official Gazette, employment of contract labour in any process, operation or other work in any establishment.

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

(a) whether the process, operation or other work is incidental to, or necessary for the industry, trade, business, manufacture or occupation that is carried on in the establishment ;

(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 ;

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

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.



Andhra Pradesh. —For section 10, substitute the following section, namely:—

 “ 10. Prohibition of employment of contract
labour. —(1) Notwithstanding anything contained in this Act, employment
of contract labour in core activities of any establishment if

Provided that the principal employer may engage contract labour or a contractor to any core activitiy, if—

(a) the normal functioning of the establishments is such that the activity is ordinarily done through contractors; or

(b) the activities are such that they do not
require full time workers for the major portion of the working hours in
a day or for longer periods, as the case may be;

(c) any sudden increase of volume of work in the core activity which needs to be accomplished in a specified time.

(2) Designated authority. —(a) The
appropriate Government may by notification in the Official Gazette
appoint a designated authority to advise them on the question whether
any activity of a given establishment is a core activity or otherwise;

(b) if a question arises as to whether any
activity of an establishment is a core activity or otherwise the
aggrieved party may make an application in such a form and manner as may
be prescribed, to the appropriate Government for decision;

(c) the appropriate Government may refer any
question by itself or such application made to them by any aggrieved
party as prescribed in clause (b), as the case may be, to the designated
authority, which on the basis of relevant material in its possession,
or after making such an enquiry as deemed fit shall forward the report
to the appropriate Government, within a prescribed period and thereafter
the appropriate Government shall decide the question within the
prescribed period.”

[ Vide Contract Labour (Regulation and
Abolition) (Andhra Pradesh) (Amendment) Act, 2003 (Andhra Pradesh Act 10
of 2003), sec. 4.]


Maharashtra. —In section 10,
in sub-section (1), after the words “Notwithstanding anything contained
in this Act”, insert the words “but, subject to the provisions of
clause (c) of sub-section (5) of section 1”.

[ Vide The Contract Labour (Regulation and
Abolition) (Maharashtra Amendment) Act, 2005 (Maharashtra Act 13 of
2006), sec. 3 (w.e.f. 2-5-2006).]

Related Keywords
Contract Labour  Contractors  Employment Of Contract Labour  Recruitment  Startup of a New Establishment or Factory