Contract Labour (Regulation and Abolition) Act, 1970
[37 OF 1970]1
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
Short title, extent, commencement and application.
1. (1) This Act may be called the Contract Labour (Regulation and Abolition) Act, 19702.
(2)It extends to the whole of India.
(3)It shall come into force on such date as the Central Government may, by notification3 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 employs 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.
1. Dated 5-9-1970.
2. Shall be omitted by the Occupational Safety, Health and Working Conditions Code, 2020, with effect from a date yet to be notified.
3. with effect from 10-2-1971, Vide Notification G.S.R. 190, dated 1-2-1971.
(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 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.
COMMENTS
SECTION NOTES
1.1 Short title [Section 1(1)]
This Act is officially cited as the Contract Labour (Regulation and Abolition) Act, 1970.
1.2 Extent [Section 1(2)]
The Act extends to the whole of India.
1.3 Commencement [Section 1(3)]
The Act comes into force on a date [with effect from 10-2-1971] appointed by the Central Government through a notification in the Official Gazette.
Different provisions may be brought into force on different dates.
1.4 Application [Section 1(4)]
1.4-1 Establishments [Clause (a)]
This Act applies to every establishment where 20 or more workmen are or were employed as contract labour on any day of the preceding 12 months.
1.4-2 Contractors [Clause (b)]
This Act applies to every contractor who employs or employed 20 or more workmen on any day of the preceding 12 months.
1.4-3 Exceptional applicability over certain contractor [Proviso]
The appropriate Government may extend the Act’s application to establishments or contractors employing less than 20 workmen.
This requires a minimum two-month notice in the Official Gazette specifying the revised threshold.
1.5 Exemption for intermittent or casual work [Section 1(5)]
1.5-1 General Rule [Clause (a)]
The Act does not apply to establishments where only intermittent or casual work is performed.
1.5-2 Determination Authority [Clause (b)]
If there’s any dispute about the nature of the work, the appropriate Government decides after consulting the Central or State Board.
Such a decision is final.
1.5-3 Clarification of “Intermittent” [Explanation]
Work is not deemed intermittent if:
Clause (i): It was performed for more than 120 days in the previous 12 months.
Clause (ii): It is seasonal and performed for more than 60 days in a year.
STATE UNION TERRITORY AMENDMENTS
MAHARASHTRA
Section 1
In sub-section (5), after clause (b), the following clause shall be added,—
“(c) Notwithstanding anything contained in clause (b) or any other provisions of this Act, the work performed or carried out in the area of Special Economic Zone (declared as such by the Government of India), which is of ancillary nature such as canteen, gardening, cleaning, security, courier services, transport of raw material and finished products, or loading and unloading of goods within the premises of a factory or establishments which are declared 100 per cent export units by Government, required to achieve the objective of a principal establishment in the said area, shall be deemed to be of temporary and intermittent nature irrespective of the period of performance of the work by the workers in such ancillary establishments.” -[Vide the Contract Labour (Regulation and Abolition) (Maharashtra Amendment)Act, 2005, w.e.f. 2-5-2006]
In clauses (a) and (b), for the words “twenty or more workmen” substitute “fifty or more workmen”
In the proviso, for the words “less than twenty”, substitute “less than fifty” – [Vide the Contract Labour (Regulation and Abolition) (Maharashtra Amendment) Act, 2016, w.e.f. 5-1-2017]
UNION TERRITORY OF JAMMU AND KASHMIR
Section 1
In sub-section (4), in clause (a) for the word “twenty”, substituted the word “forty” – [Vide the Union Territory of Jammu & Kashmir Reorganisation (Adoptation of Central Laws) Second Order, 2020, w.e.f. 5-10-2020].
GOA
Section 1
In sub-section (4), for the word “twenty”, wherever it occurs, the word “fifty” shall be substituted. – [Vide the Contract Labour (Regulation and Abolition) (Andhra Pradesh Amendment) Act, 2003]
Definitions.
2. (1) In this Act, unless the context otherwise requires,—
4[(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 under takes to produce a given result for the establishment, other than a mere supply of goods or 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 occu pation is carried on;
(
(
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,
4. Substituted by the Contract Labour (Regulation and Abolition) Amendment Act, 1986, w.r.e.f. 28-1-1986. Prior to its substitution, clause (a) read as under:
‘(a) “appropriate Government” means,— (1) in relation to-
(i) any establishment pertaining to any industry carried on by or under the authority of the Central Government, or pertaining to any such controlled industry as may be specified in this behalf by the Central Government, or
(ii) any establishment of any railway. Cantonment Board, major port, mine or oil-field, or
(iii) any establishment of a banking or insurance company, the Central Government, (2) in relation to any other establishment, the Government of the State in which that other establishment is situated;’
(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, semi-skilled or un-skilled manual, supervisory, technical 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 and materials are given out by or on behalf of the principal employer to be made up, cleaned, washed, altered, ornamented, finished, re paired, 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.
COMMENTS
SECTION NOTES
2.1 Definition of “Contract Labour” [Section 2(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; The hiring is done by or through a contractor; This status applies whether or not the principal employer is aware of the hiring arrangement.
CONTRACT LABOUR (REGULATION AND ABOLITION) ACT 1970 WITH RULES – BARE ACT WITH SECTION NOTES
AUTHOR : TAXMANN’S EDITORIAL BOARD
PUBLISHER : TAXMANN
DATE OF PUBLICATION : MAY 2025
EDITION : 2025 EDITION
ISBN NO : 9789364551274
NO. OF PAGES : 120
BINDING TYPE : PAPERBACK
DESCRIPTION
Contract Labour (Regulation and Abolition) Act 1970 with Rules [Bare Act with Section Notes] by Taxmann presents a complete legal framework for governing contract labour in India. This 2025 Edition contains the principal Act, all relevant Central Rules, and amendments/notifications (including Standards of Construction and Maintenance of Creches, Ease of Compliance to Maintain Registers under Various Labour Laws Rules, and Rationalisation of Forms and Reports under Certain Labour Laws Rules). The legislation is provided in a “bare act” format, with concise section-wise notes that explain definitions, obligations, and procedures.
This book is intended for the following audience:
• Legal Practitioners & Advocates
• Business Owners & HR Professionals
• Compliance Officers & Corporate Counsels
• Government Officers & Inspectors
• Academics & Law Students
The Present Publication is the 2025 Edition, covering the amended and updated text of the Contract Labour (Regulation and Abolition) Act [Act No. 37 of 1970] and Rules, with the following noteworthy features:
• [Complete Text of the Principal Act] Full original text of the Contract Labour (R&A) Act 1970
• [Pre-Amendment Provisions] Footnote references to older text for historical context
• [Central & Supplementary Rules] Coverage of relevant rules (Central Rules, Creches, Forms & Reports, Ease of Compliance)
• [Section Notes & Commentary] Clear explanations after each section
• [Updated Amendments & Notifications] Incorporates latest changes to ensure current legal position
• [Practical Forms & Formats] Unified returns, licensing forms, and compliance templates
• [State & UT Amendments] Highlights jurisdictional variations
• [Easy Reference Structure] Detailed table of contents and subject index
