THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 
 

ACT NO. 37 OF 19701 
   
[5th September, 1970.] 
   
An Act to regulate the employment of contract labour in certain establishments and   to 
provide   for its   abolition in   certain circumstances and for matters connected therewith. 
  
Be it enacted by Parliament in the Twenty-first Year of the Republic of India as follows: - 
  

CHAPTER I 
 

PRELIMINARY 
 
1. Short title, extent, commencement and application. - (1) This Act may be called the 
Contract Labour (Regulation and Abolition) Act, 1970. 
  
(2) It extends to the whole of India. 
  
(3) It shall come into force on such date 1* as the Central Government may, by 
notification in the Official Gazette, appoint and different dates may be appointed for 
different provisions of this Act. 
  
(4) It applies-- 
  

(a) To every establishment in which twenty or more workmen are employed or 
were employed on any day of the preceding twelve months as contract labour; 

  
(b) to every contractor who employees or who employed on any day of the 
preceding  twelve  months  twenty  or  more workmen: 

  
Provided that the appropriate Government may, after giving not less  than   two  
months'  notice  of  its  intention  so  to  do,  by notification in the Official 
Gazette, apply the provisions of this Act to any  establishment or  contractor 
employing  such number of workmen less than twenty as may be specified in the 
notification. 

  
(5)  (a)  It shall  not apply to establishments in which work only of an intermittent or 

casual nature is performed. 
  

(b)  If   a  question   arises  whether   work  performed  in  an establishment is  of 
an intermittent or casual nature, the appropriate Government shall 

  
  
                                                 
1 Received assent of the President on 5.9.1970; Published in Gazette of India on 7.9.1970 



  
decide that  question after consultation with the Central Board or, as the case may be, a 
State Board, and its decision shall be final. 
  
Explanation.-- For the purpose of this sub-section, work performed in an  establishment 
shall  not be  deemed to  be of  an  intermittent nature-- 
  

(i) if it was performed for more than one hundred and twenty days in the 
preceding twelve months, or 

  
(ii) if  it is  of a seasonal character and is performed for more than sixty days in a 
year. 

  
2. Definitions.- (1) In  this Act,  unless the  context otherwise requires,-- 
  
      2[(a) "appropriate Government" means,-- 
  

(i) in  relation to  an establishment  in  respect  of which the appropriate 
Government under the  Industrial  Disputes Act, 1947 (14 of 1947),  is  the  
Central  Government, the Central Government; 

  
(ii) in relation to any other establishment, the Government of the State in which  
that  other  establishment  is situated;] 

  
(b) a  workman shall  be deemed  to be employed as "contract labour" in  or  in  
connection  with  the  work  of  an establishment when he is hired in or in 
connection with such work  by or  through a contractor, with or without the 
knowledge of the principal employer; 

  
(c) "contractor", in relation to an establishment, means a person who undertakes 
to produce a given result for the establishment, other than a  mere supply  of 
goods  of articles of  manufacture to such establishment, through contract labour 
or who supplies contract labour for any work  of   the  establishment   and  
includes   a sub-contractor; 

  
(d) "controlled  industry" means any industry the control of which by the Union 
has been declared by any Central Act to be expedient in the public interest; 

  
            (e) "establishment" means-- 
  

(i) any  office or department of the Government or a local authority, or 
  

(ii) any place where   any  industry, trade, business, manufacture or 
occupation is carried on;  

                                                 
2  Subs. by Act 14 of 1986, s. 2 (w.e.f. 28.1.1986). 
 



  
           (f) "prescribed"  means prescribed  by rules made under this Act; 
  
           (g) "principal employer" means-- 
  

(i) in relation to any office or department of the Government or  a local  
authority,  the  head  of  that office or  department or  such  other  officer  
as  the Government or  the local authority, as the case may be, may specify 
in this behalf, 

  
(ii) in  a factory,  the owner  or occupier of the factory and  where a  
person  has  been  named  as  the manager of  the factory  under the 
Factories Act,  1948 (63 of 1948) the person so named, 

  
(iii) in  a mine,  the owner  or agent of the mine and where a person has 
been named as the manager of the mine, the person so named, 

  
(iv)  in   any  other  establishment,  any  person responsible for  the 
supervision  and  control  of  the establishment. 

  
Explanation.--For the purpose of sub-clause (iii) of this clause, the 
expressions  "mine", "owner"  and "agent"  shall have the meanings 
respectively assigned to them in clause (j), clause (l) and clause (c) of sub-
section (1) of section 2 of the Mines Act, 1952 (35 of  1952); 

  
(h) "wages"  shall have the meaning assigned to it in clause (vi) of section 2 of the 
Payment of Wages Act, 1936  (4 of 1936); 

  
(i) "workman"  means any person employed in or in connection with the  work of  
any establishment to do any skilled, semiskilled or un-skilled manual,   
supervisory, or clerical work for hire or reward, whether the terms of employment 
be express or implied, but does not include any such person-- 

  
                      (A) who is employed mainly in a managerial or administrative capacity; or 
  

(B) who,  being employed  in a supervisory capacity draws wages 
exceeding five hundred rupees per mensem or exercises, either  by the 
nature of the duties attached to the office or by reason of the powers 
vested in him, functions mainly of a managerial nature; or 

  
(C) who is an out-worker, that is to say, a person to whom  any articles  or 
materials are given out by or on behalf  of the  Principal employer  to be  
made  up, cleaned,   washed,   altered,   ornamented,   finished, repaired, 
adapted  or otherwise  processed for sale for the purposes  of the trade or 
business of the principal employer and the process is to be carried out 
either in the home  of the  out-worker or in some other premises,               



not being  premises under the control and management of the principal 
employer. 

  
(2) Any  reference in  this Act to a law, which is not in force in the State  of Jammu  and 
Kashmir,  shall, in relation to that State, be construed as a reference to the corresponding 
law, if any, in force in that State. 
  

 
CHAPTER II 

 
THE ADVISORY BOARDS 

  
3. Central  Advisory Board.- (1) The Central Government shall, as soon as  may be,  
constitute a board to be called the Central Advisory Contract Labour  Board (hereinafter  
referred to as the Central Board) to advise  the Central  Government on  such matters 
arising out of the administration of  this Act  as may be referred to it and to carry out 
other functions assigned to it under this Act. 
  
(2) The Central Board shall consist of-- 
  
           (a) a Chairman to be appointed by the Central Government; 
  
           (b) the Chief Labour Commissioner (Central), ex-officio; 
  

(c) such  number of members, not exceeding seventeen but not less  than   eleven,  
as  the  Central Government may nominate to  represent that  Government, the  
Railways, the   coal   industry,   the   mining   industry,   the contractors, the 
workmen and any other interests which, the  opinion of  the Central Government, 
ought to be represented on the Central Board. 

  
(3) The number of persons to be appointed as members from each of the categories  
specified in  sub-section (2),  the term of office and other conditions  of service  of, the  
procedure to be followed in the discharge of  their functions  by, and the manner of filling 
vacancies among, the  members of  the Central  Board shall  be such  as  may  be 
prescribed: 
  

Provided that  the number  of members  nominated to represent the workmen shall  
not be  less than  the number  of members  nominated to represent the principal 
employers and the contractors. 
  
4. State Advisory Board.- (1) The State Government may constitute a board  to  be  called  
the  State  Advisory  Contract  Labour  Board (hereinafter referred  to as  the State  
Board) to  advice the State Government on such matters arising out of the administration 
of this Act as may be referred to it and to carry out other functions assigned to it under 
this Act. 
 



(2) The State Board shall consist of-- 
  
           (a)  a Chairman to be appointed by the State Government; 
  

(b) the  Labour Commissioner,  ex-officio, or in his absence any other  officer 
nominated by the State Government in that behalf; 

  
(c) such  number of  members, 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. 

  
(3) The number of persons to be appointed as members from each of the categories  
specified in  sub-section (2),  the term of office and other conditions  of service  of, the  
procedure to be followed in the discharge of  their functions  by, and the manner of filling 
vacancies among, the  members of  the State  Board  shall  be  such  as  may  be 
prescribed: 
  

Provided that  the number  of members  nominated to represent the workmen shall  
not be  less than  the number  of members  nominated to represent the principal 
employers and the contractors. 
  
5. Power to constitute  committees.- (1) The Central Board or the State Board,  as the  
case may  be, may constitute such committees and for such purpose or purposes as it may 
think fit. 
  
(2) The  committee constituted under sub-section (1) shall meet at such times  and places  
and shall observe such  rules of procedure in regard to the transaction  of business  at its  
meetings as may be prescribed. 
  
(3) The  members of  a committee  shall be  paid  such  fees  and allowances for attending 
its meetings as may be prescribed: 
  
Provided that no fees shall, be  payable to  a member  who is an officer of Government or 
of any corporation established by any law for the time being in force. 
  
 

CHAPTER III 
 

REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LABOUR 
  
6.  Appointment of registering officers.-  The appropriate Government may, by an order 
notified in the Official Gazette-- 
  

(a)  appoint   such  persons,  being  Gazetted Officers  of Government, as it thinks 
fit to be registering officers for the purposes of this Chapter; and 



  
(b) define the limits, within which a registering officer shall exercise the powers 
conferred on him by or under this Act. 

  
7. Registration  of certain  establishments.- (1) Every principal employer of  an 
establishment  to which this Act applies shall, within such period  as the appropriate 
Government may, by notification in the Official Gazette,  fix in  this behalf  with respect 
to establishments generally or with respect to any class of them, make an application to 
 the registering  officer in  the prescribed manner for registration of the establishment: 
  

Provided that the registering officer may entertain any such application for  
registration after expiry of the period fixed in this behalf, if  the registering officer is 
satisfied that the applicant was prevented by sufficient cause from making the application 
in time. 
  
(2) If the application for registration is complete in all respects, the registering officer 
shall register the establishment and issue to  the principal employer of the establishment a 
certificate of registration containing such particulars as may be prescribed. 
 
8.  Revocation   of  registration   in  certain  cases.-  If  the registering officer is 
satisfied, either on a reference made to him in this behalf  or otherwise,  that the 
registration of any establishment has been  obtained by misrepresentation or suppression 
of any material fact, or that for any other reason the registration has become useless or 
ineffective and, therefore, requires to be revoked, the registering officer may,  after 
giving an opportunity to the principal employer of the establishment  to be  heard and  
with the previous approval of the appropriate Government, revoke the registration. 
  
9. Effect  of  non-registration.- No  principal employer  of  an establishment, to which 
this Act applies, shall-- 
  

(a)  in   the  case  of  an  establishment  required  to  be registered under  section 7,  
but which has not been registered within the time fixed for the purpose under that 
section, 

  
(b) in  the case  of an  establishment the  registration  in respect of which has been 
revoked under section 8, employ contract  labour in  the establishment  after the 
expiry of the period  referred   to  in  clause  (a)  or  after  the  revocation  of  
registration referred to in clause (b), as the case may be.  

  
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. 

  
 

CHAPTER IV 
 

LICENSING OF CONTRACTORS 
  
11. Appointment of licensing officers.-- The appropriate Government may, by an order 
notified in the Official Gazette,-- 
  
           (a)  appoint   such  persons,  being  Gazetted  Officers  of Government, as  it thinks  
fit to be licensing officers for the purposes of this Chapter; and 
 

(b) define  the limits, within which  a  licensing  officer shall  exercise   the  
powers  conferred  on  licensing officers by or under this Act. 
 
12. Licensing  of contractors.- (1) With effect from such date as the appropriate  
Government  may,  by  notification  in  the  Official Gazette, appoint,  no contractor  to  
whom  this  Act  applies,  shall undertake or execute any work through contract labour 
except under and in accordance  with a  licence issued  in that behalf by the licensing 
 officer. 
  
(2) Subject  to the  provisions of this Act, a licence under sub-section (1)  may contain  
such conditions  including,  in  particular, conditions as  to hours of work, fixation of 



wages and other essential amenities in  respect of contract labour as the appropriate 
Government may deem  fit to  impose in  accordance with  the rules,  if any, made 
 under section  35 and  shall be  issued on payment of such fees and on the deposit  of 
such  sum, if any, as security for the due performance of the conditions as may be 
prescribed. 
 
13. Grant  of licences.- (1) Every application for the grant of a licence under  sub-section 
(1)  of section  12 shall  be made  in  the prescribed form  and  shall  contain  the  
particulars  regarding  the location of  the establishment,  the nature  of process,  
operation or work for  which contract  labour is  to be  employed  and  such  other 
particulars as may be prescribed. 
  
(2) The  licensing officer may make such investigation in respect of the  application 
received  under sub-section  (1) and in making any such investigation  the licensing  
officer shall follow such procedure as may be prescribed. 
  
(3) A  licence granted  under this Chapter shall be valid for the period specified therein 
and may be renewed from time to time for such period and  on payment  of such  fees and 
on such conditions as may be prescribed. 
  
14. Revocation, suspension and amendment of licences.- (1) If the licensing officer  is 
satisfied,  either on a reference made to him in this behalf or otherwise, that-- 
  

(a) a  licence granted under section 12 has been obtained by misrepresentation or  
suppression of any material fact, or 

  
(b) the  holder of  a licence has, without reasonable cause, failed to  comply with  
the conditions subject to which the licence  has been granted or has contravened  
any of the  provisions   of  this   Act  or   the  rules  made thereunder, then, 
without  prejudice to  any other  penalty to which the holder of the licence  may 
be  liable under this Act, the licensing officer may, after giving the holder  of the  
licence an opportunity of showing cause, revoke or suspend the licence or forfeit 
the sum, if any, or any portion thereof deposited as  security for  the  due  
performance  of  the  conditions subject to which the licence has been granted. 

  
(2) Subject  to any  rules that  may be  made in this behalf, the licensing officer  may vary  
or amend  a licence granted under section 12. 
  
15. Appeal.- (1) Any  person aggrieved  by an  order  made  under section 7, section 8, 
section 12 or section 14 may, within thirty days from the  date on  which the  order is  
communicated to him, prefer an appeal to an appellate officer who shall be a person 
nominated in this behalf by the appropriate Government: 
  
Provided that the appellate  officer may  entertain  the  appeal after the expiry of the said 
period of thirty days, if he is satisfied that the  appellant was  prevented by sufficient 
cause from filing the appeal in time. 



  
(2) On  receipt of an appeal under sub-section (1), the appellate officer shall,  after giving  
the appellant  an opportunity  of  being heard dispose of the appeal as expeditiously as 
possible. 
  
 

CHAPTER V 
  

WELFARE AND HEALTH OF CONTRACT LABOUR 
  
   
16. Canteens.- (1) The  appropriate  Government  may  make  rules requiring that in 
every establishment-- 
  
           (a) to which this Act applies, 
  

(b) wherein  work requiring employment of contract labour is likely  to   continue  
for such  period   as  may  be prescribed, and 

  
(c) wherein contract labour numbering one hundred or more is ordinarily 
employed by a contractor, one  or  more  canteens  shall  be  provided  and  
maintained  by  the contractor for the use of such contract labour. 

  
(2) Without  prejudice to  the generality of the foregoing power, such rules may provide 
for-- 
  
           (a) the date by which the canteens shall be provided; 
  

(b) the  number of  canteens that shall be provided, and the standards in  respect of  
construction,  accommodation, furniture and other equipment of the canteens; and 

  
(c) the  foodstuffs which  may be  served  therein  and  the charges which may be 
made thereof. 

  
   
17. Rest-rooms.- (1) In every place  wherein contract  labour  is required  to  halt  at  
night  in  connection  with  the  work  of  an establishment-- 
  
           (a) to which this Act applies, and 
  

(b) in which work requiring employment of contract labour is likely  to   continue  
for   such  period   as  may  be prescribed, there shall  be provided  and maintained 
by the contractor for the use of the  contract labour  such  number  of  rest-rooms  
or  such  other suitable  alternative   accommodation  within  such  time  as  may  
be prescribed. 

  



(2)  The  rest rooms  or  the  alternative  accommodation  to  be provided under  sub-
section (1)  shall  be  sufficiently  lighted  and ventilated  and  shall  be  maintained  in  a  
clean  and  comfortable condition. 
  
   
18. Other  facilities.- It shall be  the duty of every contractor employing  contract   labour  
in   connection  with  the  work  of  an establishment to which this Act applies, to provide 
and maintain-- 
  

(a) a  sufficient supply of wholesome drinking water for the contract labour at 
convenient places; 

  
(b) a  sufficient number  of latrines  and  urinals  of  the prescribed types  so 
situated  as to  be convenient and accessible to the contract labour in the 
establishment; and 

  
           (c) washing facilities. 
  
  19. First-aid facilities.- There shall be provided and maintained by the  contractor so  as 
to  be readily accessible during all working hours a  first-aid box  equipped with the 
prescribed contents at every place where contract labour is employed by him. 
  
20. Liability of principal employer in certain cases.- (1) If any amenity required  to be 
provided under section 16, section 17, section 18 or section 19 for the benefit of the 
contract labour employed in an establishment is  not provided  by  the  contractor  within  
the  time prescribed thereof,  such amenity shall be provided by the principal employer 
within such time as may be prescribed. 
  
(2) All  expenses incurred by the principal employer in providing the amenity  may be  
recovered by  the  principal  employer  from  the contractor  either  by  deduction  from  
any  amount  payable  to  the contractor under any contract or as a debt payable by the 
contractor. 
  
21. Responsibility  for payment of wages.- (1) A contractor shall be responsible  for 
payment of wages to each worker employed by him as contract labour and such wages 
shall be paid before the expiry of such period as may be prescribed. 
  
(2) Every principal employer shall nominate a representative duly authorized by  him to  
be present at the time of disbursement of wages by the  contractor and  it shall be the duty 
of such representative to certify the amounts paid as wages in such manner as may be 
prescribed. 
  
(3) It  shall be  the  duty  of  the  contractor  to  ensure  the disbursement of wages in the 
presence of the authorized representative of the principal employer. 
  



(4) In  case the contractor fails to make payment of wages within the prescribed  period 
or  makes short  payment,  then  the  principal employer shall  be liable  to make  
payment of  wages in  full or  the unpaid balance  due, as  the case  may  be,  to  the  
contract  labour employed by  the contractor  and recover  the amount  so paid from the 
 contractor  either  by  deduction  from  any  amount  payable  to  the contractor under 
any contract or as a debt payable by the contractor. 
  
   

CHAPTER VI 
 

PENALTIES AND PROCEDURE 
  
22. Obstructions.- (1) Whoever  obstructs  an  inspector  in  the discharge of his duties 
under this Act or refuses or willfully neglects to afford  the  inspector  any  reasonable  
facility  for  making  any inspection, examination,  inquiry or  investigation authorized  
by  or under this  Act in  relation  to  an  establishment  to  which,  or  a contractor to  
whom,  this  Act  applies,  shall  be  punishable  with imprisonment for a term which may 
extend to three months, or with fine which may extend to five hundred rupees, or with 
both. 
  
(2) Whoever  willfully refuses  to produce  on the  demand  of  an inspector any register 
or other document kept in pursuance of this Act or prevents  or attempts  to prevent  or 
does  anything which  he  has reason to  believe is  likely to  prevent any  person  from  
appearing before or  being examined  by an  inspector acting in pursuance of his duties 
under  this Act,  shall be  punishable with  imprisonment for a term which  may extend  to 
three months, or with fine which may extend to five hundred rupees, or with both. 
  
 23. Contravention  of provisions regarding employment of contract labour.- Whoever 
contravenes any provision of this Act or of any rules made thereunder  prohibiting, 
restricting or regulating the employment of contract  labour, or contravenes any condition 
of a licence granted under this Act,  shall be  punishable with imprisonment for a term 
which may extend to  three months, or with fine which may extend to one thousand 
rupees, or  with both,  and in  the case of a continuing contravention with an  additional 
fine  which may  extend to  one hundred rupees for every day  during which  such 
contravention continues after conviction for the first such contravention. 
  
  24.  Other offences.-  If  any  person  contravenes  any  of  the provisions of  this Act  or 
of  any rules made thereunder for which no other penalty  is elsewhere  provided, he  
shall  be  punishable  with imprisonment for a term which may extend to three months, or 
with fine which may extend to one thousand rupees, or with both. 
  
  25. Offences  by companies.- (1)  If  the  person  committing  an offence under  this Act  
is a  company, the  company as  well as every person in  charge of,  and responsible to, 
the company for the conduct of its  business at the time of the commission of the offence 
shall be deemed to be guilty of the offence and shall be liable to be proceeded 
 against and punished accordingly: 



Provided that  nothing contained in this sub-section shall render any such person 
liable to any punishment if he proves that the offence was committed  without his  
knowledge or  that he  exercised  all  due diligence to prevent the commission of such 
offence. 
  
(2) Notwithstanding  anything contained in sub-section (1), where an offence  under this  
Act has  been committed by a company and it is proved that  the offence  has been  
committed   with  the  consent  or connivance of,  or that  the commission of the offence 
is attributable to any neglect on the part of any director, manager, managing agent or any 
other  officer of  the company,  such director,  manager, managing agent or  such other 
officer shall also be deemed to be guilty of that offence and  shall be  liable to  be 
proceeded  against  and  punished accordingly. 
  
Explanation.-- For the purpose of this section-- 
  

(a) "company"  means any  body corporate and includes a firm or other 
association of individuals; and 

  
           (b) "director",  in relation  to a  firm, means a partner in the firm. 
  
26. Cognizance of offences.- No court shall take cognizance of any offence under  this 
Act  except on  a complaint  made by,  or with the previous sanction  in writing  of, the 
inspector and no court inferior to that  of a Presidency Magistrate or a magistrate of the 
first class shall try any offence punishable under this Act. 
  
27. Limitation of prosecutions.- No court shall take cognizance of an offence  punishable 
under  this Act unless the complaint thereof is made within three months from the date on 
which the alleged commission of the offence came to the knowledge of an inspector: 
  
Provided that  where the offence consists of disobeying a written order made  by an  
inspector, complaint thereof may be made within six months of  the date  on which  the 
offence  is alleged  to  have  been committed. 
 

CHAPTER VII 
  

MISCELLANEOUS 
  
28. Inspecting  staff.- (1) The appropriate  Government  may,  by notification in  the 
Official  Gazette, appoint  such  persons  as  it thinks fit  to be  inspectors for the purposes 
of this Act, and define the local  limits within  which they shall exercise their powers 
under this Act. 
  
(2) Subject  to any  rules made in this behalf, an inspector may, within the local limits for 
which he is appointed-- 
  



(a) enter, at all reasonable hours, with such assistance (if any), being persons in 
the service of the Government or any local  or other  public authority as he thinks 
fit, any  premises   or  place   where  contract  labour  is employed, for  the 
purpose of examining any register or record or  notices required  to be kept or 
exhibited by or under this Act or rules made thereunder, and require the 
production thereof for inspection; 

  
(b) examine any person whom he finds in any such premises or place and who, he 
has reasonable cause to believe, is a workman employed therein; 

  
(c) require  any person  giving out work and any workman, to give any  
information, which  is in  his power  to give with respect  to the names and 
addresses of the persons to, for  and  from  whom  the  work  is  given  out  or 
received, and  with respect  to the payments to be made for the work; 

  
(d) seize  or take  copies of such register, record of wages or notices  or portions  
thereof  as  he  may  consider relevant in  respect of an offence under this Act 
which he has  reason to  believe has  been committed  by  the principal employer 
or contractor; and 

  
           (e) exercise such other powers as may be prescribed. 
  
(3) Any  person required  to produce  any document or thing or to give any  information 
required  by an  inspector under sub-section (2) shall be deemed to  be legally bound to 
do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of 
1860). 
  
(4) The provisions of the Code of Criminal Procedure, 1898  (5 of 1898), shall,  so far  as 
may be, apply to any search or seizure under sub-section (2)  as they apply to any search 
or seizure made under the authority of a warrant issued under section 98 of the said 
Code.3 
 
29. Registers  and other records to  be  maintained.-  (1)  Every principal employer  and 
every contractor shall maintain such registers and records  giving such  particulars of 
contract labour employed, the nature of  work performed  by the  contract labour, the 
rates of wages paid to the contract labour and such other particulars in such form as 
 may be prescribed. 
  
(2) Every  principal employer  and every  contractor  shall  keep exhibited in  such 
manner  as may be prescribed within the premises of the establishment  where the  
contract labour  is employed, notices in the prescribed  form containing  particulars about  
the hours of work, nature of duty and such other information as may be prescribed. 
 
30. Effect of laws and agreements inconsistent with this Act.- (1) The provisions  of this 
Act shall have effect notwithstanding anything inconsistent therewith  contained in  any 
                                                 
3 Now see Section 94 of the Criminal Procedure Code, 1973 



other law or in the terms of any agreement  or contract  of service,  or  in  any  standing  
orders applicable to  the establishment  whether made  before  or  after  the 
 commencement of this Act: 
  

Provided that where under any such agreement, contract of service or standing  
orders the  contract labour employed in the establishment are entitled  to benefits  in 
respect  of any  matter which  are  more favourable to  them than  those to  which they 
would be entitled under this Act,  the contract  labour shall  continue to  be entitled to the 
more favourable  benefits in  respect of  that matter, notwithstanding that they receive 
benefits in respect of other matters under this Act. 
  
(2)  Nothing   contained  in  this  Act  shall  be  construed  as precluding any  such 
contract  labour from  entering into an agreement with the principal employer or the 
contractor, as the case may be, for granting them  rights or privileges in respect of any 
matter, which are more favourable  to them  than those  to which  they would be entitled 
under this Act. 
 
31. Power to exempt in special cases.- The appropriate Government may, in  the case  of 
an  emergency, direct,  by notification  in  the Official Gazette, that subject to such 
conditions and restrictions, if any, and  for such  period or  periods, as  may be  specified  
in  the notification, all  or any  of the  provisions of this Act or the rules made thereunder  
shall not apply to any establishment or class of establishments or any class of contractors. 
  
32. Protection of action  taken under  this Act.-  (1)  No  suit, prosecution  or   other  
legal   proceedings  shall  lie  against  any registering officer, licensing officer or any 
other Government servant or against  any member of the Central Board or the State 
Board, as the case may  be, for  anything which is in good faith done or intended to 
 be done in pursuance of this Act or any rule or order made thereunder. 
  
(2) No  suit or  other legal  proceeding shall  lie  against  the Government for  any 
damage  caused or  likely to be caused by anything which is  in good  faith done  or 
intended  to be done in pursuance of this Act or any rule or order made thereunder. 
  
33. Power  to give  directions.- The  Central Government may give directions to  the 
Government  of any  State as  to the  carrying into execution in the State of the provisions 
contained in this Act. 
 
34. Power  to remove  difficulties.- If any difficulty  arises in giving effect  to the  
provisions of  this Act, the Central Government may, by  order published in the Official 
Gazette, make such provisions not inconsistent  with the provisions of this Act, as 
appears to it to be necessary or expedient for removing the difficulty. 
  
35. Power  to make  rules.- (1) The appropriate  Government  may, subject to  the 
condition  of previous  publication,  make  rules  for carrying out the purposes of this Act. 
  



(2) In particular, and without prejudice to the generality of the foregoing power,  such 
rules  may  provide  for  all  or  any  of  the following matters, namely:-- 
  

(a) the  number  of  persons  to  be  appointed  as  members representing various 
interests on the Central Board and the State  Board, the  term of  their office  and 
other conditions of  service, the procedure to be followed in the discharge  of their  
functions and  the  manner  of filling vacancies; 

  
(b) the  times and  places of  the meetings of any committee constituted  under   
this  Act,  the  procedure  to  be followed  at   such  meetings   including  the   
quorum necessary for the transaction of business, and the fees and allowances  
that may  be paid  to the  members of a committee; 

  
(c) the  manner in  which establishments  may be  registered under section  7, the  
levy of  a fee  thereof and the form of certificate of registration; 

  
(d) the  form of  application for  the grant or renewal of a licence under  section 
13  and the  particulars it  may contain; 

  
(e) the  manner in  which an  investigation is to be made in respect of  an 
application  for the  grant of a licence and the matters to be taken into account in 
granting or refusing a licence; 

  
(f) the  form of  a licence  which may be granted or renewed under section  12 and  
the conditions  subject to which the licence  may be  granted or renewed, the fees 
to be levied for  the grant  or renewal  of a licence and the deposit of  any sum  as 
security for the performance of such conditions; 

  
(g) the circumstances under which licences may be varied or amended under 
section 14; 

  
(h) the  form and manner in which appeals may be filed under section  15   and  
the  procedure  to  be  followed  by appellate officers in disposing of the appeals; 

  
(i) the time within which facilities required by this Act to be provided  and 
maintained  may be  so provided by the contractor and  in case  of default  on the 
part of the contractor, by the principal employer; 

  
(j) the  number and  types of canteens, rest rooms, latrines and urinals that should 
be provided and maintained; 

  
           (k) the  type of  equipment that  should be  provided in the first-aid boxes; 
  

(l) the period within which wages payable to contract labour should be  paid by 
the contractor under sub-section (1) section 21; 

  



(m) the  form of  registers and  records to be maintained by principal employers 
and contractors; 

  
(n) the  submission of  returns, forms  in  which,  and  the authorities to which, 
such returns, may be submitted; 

  
(o) the  collection of  any  information  or  statistics  in relation to contract labour; 
and 

  
           (p) any  other matter which has to be, or may be, prescribed under this Act. 
  
(3) Every  rule made  by the  Central Government  under this  Act shall be laid as soon as 
may be after it is made, before each House of Parliament while  it is  in session  for a total 
period of thirty days which may  be comprised  in one session or in two successive 
sessions, and if  before the expiry of the session in which it is so laid or the session  
immediately  following,  both  Houses  agree  in  making  any modification in the rule or 
both Houses agree that the rule should not be made,  the rule  shall thereafter have effect 
only in such modified form or  be of  no effect,  as the  case may be; so, however, that 
any such modification or annulment  shall be  without  prejudice  to  the validity of 
anything previously done under that rule.