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Compliance requirements if migrant workmen or contract labour is employed


1. The Contract Labour (Regulation & Abolition) Act, 1970

Contract labour refers to the workers engaged by a contractor for enterprises. The Contract Labour (Regulation & Abolition) Act, 1970 (Contract Labour Act) aims at regulating employment of contract labour so as to protect the interests of indirectly employed workers, as otherwise employers can easily avoid their statutory responsibilities towards workers by introducing a middleman. The act deals with working conditions and certain other benefits of contract labourers.

This statute applies to every establishment (and contractor engaged by such establishment) in which twenty or more workmen are employed (or were employed in the preceding twelve months as contract labourer, even if for one day). Under Section 7 of the Contract Labour Act, every establishment and contractor, to whom the Act applies are required to register themselves or obtain a license for execution of the contract work.

Under Section 10 of the Contract Labour Act, the appropriate government (Central Government or the State Government, depending on the establishment) can notify certain establishments, processes, operation or work in which contract labour cannot be employed. To find out the categories of establishments or processes where contract labour cannot be employed in a particular state, you will have to look for a notification by the appropriate government.

Compliance Requirements:

* Registration Certificate (Before appointing contractor) – Form-1
* Register of Contractor – Form-XII
* Register of Employees employed by Contractor – Form-XIII
* Muster Roll, Wage Register, Over Time Register, Fine Register, Deduction Register, Advance Register ( contractor)
* Notice regarding rates of wages
* Display of the Act & Rules both in English & Kannada
* Half yearly return by contractor – Form – XXIV
* Annual Return by Principle Employer – Form – XXV

 The Interstate Migrant Workmen (Regulation of employment and conditions of service) Act, 1979

The Interstate Migrant Workmen (Regulation of employment and conditions of service) Act, 1979 is applicable to every establishment and also every contractor that employs/employed five or more ‘inter-state workmen’ on any day in the preceding twelve months. An “inter-state migrant workman” means any person who is recruited by or through a contractor in one State under an agreement (or other arrangement) for employment in another State (irrespective of whether it is with or without the knowledge of the principal employer).

It is a central legislation which is enacted to regulate the employment of interstate workmen for their wages, conditions of service and other incidental matters.

Registration of employers: A principal employer (as defined under the Act) must obtain registration under the Act. Usually, an application for registration must be decided within 30 days by the registering officer. If the registering officer neither grants nor rejects the application within 30 days, a subsequent application may be made by the principal employer and the establishment must be registered within 15 days of such registration.

For example, under the Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service (Karnataka) Rules, 1981 (Karnataka Migrant Rules), Form-I needs to be filed for registration of establishment for employing migrant workmen. An annual return needs to be filed in Form XXIV.

Licensing of contractors

Consequence of violation
: Contravention of the provisions of the Act or the licenses granted under it is punishable with imprisonment of upto a year and/or fine of upto Rs. 2000 depending on the contravention.

For example, under the Karnataka Migrant Rules, Form-IV needs to be filed by contractors for obtaining a license under the Act. Further, Form XXIII needs to be filed with the Licensing Officer on a half-yearly basis.


Registers to be maintained

As per Section 23 of the Inter-State Migrant Workmen Act, the appropriate government may prescribe formats for registers of – a) interstate migrant workmen employed, b) nature of work performed by such workmen, c) rates of wages paid to such workmen and notices related to a) hours of work and b) nature of duty of the workmen to be maintained.


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