• J. MEHTA & Company
  • J. MEHTA & Company
  • J. MEHTA & Company
  • J. MEHTA & Company
  • J. MEHTA & Company

Contract Labour Act, 1970

The Contract Labour

Object of the Act

To regulate the employment of contract labour in certain establishments and to provide tor Its abolition in certain circumstances and for matters connected therewith.


  • Areas and industries as notified by the Central Government.
  • Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen.

Sec. 1

Registration of Establishment

Principal employer employing 20 or more workers through the contractor or the contractor(s) on deposit of required lee in Form 1.

Sec. 7

  • Licensing of Contractor

    • Engaging 20 or more than 20 workers and on deposit of required fee in Form IV.
    • Valid for specified period.

    Sec. 12, Rule 21

  • Revocation or Suspension & Amendment of Licenses

    • When obtained by misrepresentation or suppression of material facts.
    • Failure of the contractor to comply with the conditions or contravention of Act or the Rules

    Sec. 14

Prohibition of Employment of Contract Labour

Only by the appropriate Government through issue of notification after consultation with the Board (and not Courts) can order the prohibition of employment of contract labour.
Sec. 10

Revocation of Registration

When obtained by misrepresentation or suppression of material facts etc. after opportunity to the principal employer.

Sec. 9

Responsibility of Contractor for Payment of Wages

  • To pay timely and to ensure the disbursement of wages in the presence of the authorised representative of the principal employer.
  • Rate of wages not less than the rates as fixed or prevailing in such employement as fixed by agreement.

Sec. 21, Rule 25


Contractor to send half yearly return in Form XXIV in dupllcate Within 30 days Princlpal mployer to send annual return In Form XXV In dupllcate before 15th Feb. following the end of the concerned year.

Rule 82

Registers of Contractors Principal employer

  • To maintain a register of contractors in respect of every establishment in Form Xll.

Rule 74

  • To maintain register of workers for each registered establishment
  • To issue an employment card to each worker in Form XIV.
  • To issue service certificate to every workman on his termination in Form XV.

Rules 75, 76 and 77

Muster Rolf, Wages Register, Deduction Register and Overtime Register by Contractor

  • Muster Rolf, Wages Register, Deduction Register and Overtime Register by Contractor
    • Maintain Muster Roll and a Register of Wages In Form XVI and Form XVII respectively when combined.
    • Register or wage-cum-Muster Roll in Form XVII where the wage period is a fortnight or less.
    • Maintain a Register of Deductions for damage or loss, Register or Fines and Register of Advances in Form XX, form XXI and Form XXII respectively.
  • Maintain a Register of Overtime in Form XXIII.
  • To Issue wage slips in Form XIX, to the workmen at least a day prior to the disbursement of wages.
  • Obtain she signature or thumb impression of the worker concerned against the entries relating to him on the Register of Wages or Muster Roll-cum-Wages Register.
  • When covered by Payment of Wages Act, register and records to be maintained under these rules
    • Muster Poll
    • Register of Wages
    • Register of Deductions
    • Register of Overtime
    • Register of Fines
    • Register of Advances
    • Wage slip
  • To display an abstract of the Act and Rules In English and Hindi and in the language spoken by the majority of workers In such form as may be approved by appropriate authority.
  • To display notices showing rates of wages, hours of work, wage period, dates of payment, names and addresses of the Inspector and to send copy to the inspector and any change forthwith.
  • Secs. 16 & 17

Sections Offence Punishment
Sec. 22 Obstructions For obstructing the inspector or failing to produce registers etc. - 3 months 'Imprisonment or fine upto Rs.500, or both.
Sec. 23 Violation For violation of the provisions of Act or the Rules, imprisonment of 3 months or fine upto Rs.1000. On continuing contravention, additional line upto Rs. 100 per day