What is Contract Labour?

1. INTRODUCTION

Contract labour is defined as workers who engage through an intermediary and there exists a triangular relationship between the user enterprises, the contractor [including the sub-contractor] and the workers. There are millions of workers involved in contract labour and they generally belong to the unorganized sector, have very little bargaining power and also engage in hazardous occupations risking their health and safety . They are also often denied the minimum wage and have little or no security of employment.

The contract labour system is prevalent in various economic activities in sectors like: public, private, organized, unorganized, home-based, primary manufactirung and service sectors. Colonial capitalists had practiced an extravagant syatem of contract labour in their caol fields, plantations, tectile mills and other enterprises. Various labour enquiry committees instituted by the Givernment had called for the abolition of Contract Labour System including the First National Commission on Labour and post the Supreme Court intrusion in 1960, Government of India enacted the Contract Labour (Regulation and Abolition) Act in 1970 , in order to reglate the emplyment of Contract Labour in certain institutions and to provide for its abolition in certain circumstances and for matters connected therewith. The constitutional validity of the Act and Central Rules was challenegd before the Supreme Court in Gammon India Limited, which was upheld.

Prior to the enactment of the act, there were no specific legislations to deal with the problem of Contract Labour, although there were legislations like Industrial Dispute Act 1947, Payment of Wages Act 1936 etc. but none of them were specifically designed to regulate the...

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...of consumer satisfaction.

The Act ought to be made applicable just to the primary and core activities of the establishment in so far as the nullification of contract labour system are concerned. Strong or unified activities of an establishment like maintenance, housekeeping ought to be out sourced and the Act ought to accommodate controlling the working conditions and wages. The Principal Employer ought to, in any case, need to guarantee payment of wages to contract labour as set down under the law in power as likewise other essential amenities and social securing benefits. Work requiring specific abilities inaccessible inside the establishment. If the contract labour system, which is financially savvy, is not permitted to proceed with, commercial enterprises may go in for mechanical rebuilding with less number of labourers prompting diminishment in employment.