The Contract Labour (Regulation and Abolition) Act, 1970 is a central act that regulates the employment of contract workers in India. The act aims to provide social and economic security to contract workers and protect their rights. In this article, we will discuss when the Contract Labour Act is applicable.
Firstly, the Contract Labour Act is applicable when a business employs 20 or more contract workers on any day of the preceding twelve months. The act applies to both public and private sector establishments, including government departments, factories, mines, and construction sites.
Secondly, the Act applies when a business hires contract workers through a contractor. A contractor is defined as any person who undertakes to supply contract labour for a fee. The Act applies to both principal employees (the business that employs the contract workers) and contractors.
Thirdly, the Contract Labour Act is applicable when the contract workers are engaged in work that is either incidental or necessary to the business. This means that the work carried out by the contract workers should be related to the business of the principal employer.
Fourthly, the Act applies when the contract workers are engaged in work that is not of a casual nature. Casual work refers to work that is performed intermittently or for a short duration. The Contract Labour Act does not apply when the work is casual in nature.
Lastly, the Contract Labour Act is applicable when the contract workers are engaged in work that is of a perennial nature. Perennial work refers to work that is continuous or of a long duration. The Contract Labour Act ensures that such workers are provided with social and economic security.
In conclusion, the Contract Labour Act is applicable when a business employs 20 or more contract workers, hires through a contractor, engages workers in work that is incidental or necessary to the business, engages workers in work that is not casual in nature, and engages workers in work that is of a perennial nature. Employers need to comply with the provisions of the Contract Labour Act to ensure that the rights of contract workers are protected.
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