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Press Information Bureau
Government of India
Ministry of Labour & Employment
27-August-2012 17:08 IST
Contract Labour System
Contract labour is a growing form of employment and it has opened more employment opportunities for the workers. To protect the interests of the contract labour in term of wages and other service conditions, the Government has enacted Contract Labour (Regulation & Abolition) Act, 1970. The social security aspects of contract workers under Employees Provident Fund and Miscellaneous Provision Act, 1952 and Employees State Insurance Act 1948 are enforced by the Employees Provident Fund organization and Employees State Insurance Corporation respectively provided the establishments in which contract workers are working are covered under the said Acts.

In an impact study conducted by VV Giri National Labour Institute revealed that the contract labour are being paid less wages than the wages given to the regular workers of Principal Employer even though contract labour perform same or similar kind of work.

The Central Government is the appropriate Government in respect of the establishments falling in central sphere. The private companies innon Government sector and unorganised sector come in State sphere. In the central sphere, the complaints/grievances are received in the field offices of Chief Labour Commissioner (Central) Organization, Employees Provident Fund organization and Employees State Insurance Corporation and action is taken. Apart from the prosecutions, Central Government has prohibited employment of contract labour in various establishments in central sphere through 84 Notifications issued from time to time under the Contract Labour (Regulation & Abolition) Act, 1970. To further protect the interests of the contract labour a proposal to amend the Contract Labour (Regulation & Abolition) Act, 1970 is under examination.

The Union Labour & Employment Minister Shri Mallikarjun Kharge gave this information in a written reply in Lok Sabha today.

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