Estimated number of contract labourers in India about 18 lakhs

Estimated number of contract labourers in India about 18 lakhs

Regularisation of contract workers

Under the Contract Labour (Regulation & Abolition) Act, 1970, both Central and State Governments are the ‘Appropriate Government’. The estimated number of contract labourers, engaged by licensed contractors all over India in Central Sphere is 18.44 lakhs.

As per Rule 25(2) of the Contract Labour (Regulation & Abolition) Central Rules, 1971 , the wages of the contract labour shall not be less than the rates prescribed under Minimum Wages Act, 1948 and in cases where the contract workers perform the same or similar kind of work as the workmen directly employed by the principal employer of the establishment, the wage rates, holidays , hours of work and other conditions of service shall be the same as applicable to the workmen directly employed by the principal employer doing the same or similar kind of work. The liability to ensure payment of wages and other benefits is primarily that of the contractor and, in case of default, that of the principal employer.

In case of complaints, field offices of Chief Labour Commissioner (Central) Organization investigate and take action. 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 outsourced workers are working are covered under the said Acts.

There is no provision of regularisation under the Contract Labour (Regulation& Abolition) Act, 1970 and, therefore, there is no proposal to regularise the contract workers.

The above information was submitted as written reply in Parliament by the Minister of Labour and Employment on 7th August, 2013.