The Contract Labour (Regulation & Abolition) Act, 1970

Purpose & Object

The Contract Labour (Regulation & Abolition) Act, 1970 has been enacted to regulate the employment of contract labour and to bring them at par with directly employed labour with regard to the working conditions and other benefits and also to provide for abolition of contract labour in certain circumstances.


  • Contract Labour (Regulation & Abolition) Act, 1970 extends to whole of India.
  • Applicable to all industrial and commercial establishments

Registration / License

Every establishment to which this Act applies shall get itself register with the registering authority.

Every contractor / sub-contractor to whom this Act applies shall obtain a license from the licensing authority and such contractor / sub-contractor shall undertake or execute work through contract labour in accordance with terms of license issued by the licensing officer.

Obligation of Payment

  • Contractor / Sub-contractor shall be responsible for payment of wages to each worker employed by him as contract labour;
  • Every such payment to contract labour shall be paid in the presence of authorized representative of Principal Employer;
  • In case the Contractor / Sub-contractor fails to make payment of wages within the prescribed period or makes short payment then, the Principal Employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the Contractor / Sub-contractor.

 Services We Offer

We are Contract Labour Consultants and at PEOPLENET HR CONSULTING, we provide following services in compliance to the provisions of Contract Labour (Regulation & Abolition) Act, 1970:

  • Contract Labour Compliances
  • btaining Registration of Principal Employer’s Establishment under the Contract Labour Act;
  • Obtaining Labour License for Contractors / Sub-contractors from the licensing authority;
  • Preparation & filing of returns with registering / licensing authority;
  • Preparation & Maintenance of various Registers as provided under the Contract Labour Act like Register of Contractors, Register of Workmen Employed by Contractor, Register of Wages, Register of Overtime, Register of Deductions, Register of Advances, Register of Fines etc.;
  • Assistance in preparation & maintenance of various records like Wage Slip, Muster Roll etc. as provided under the Contract Labour Act;
  • Assistance in ensuring compliance of the provisions of the Contract Labour Act related to disclosures, notices, displays, deductions etc.;

Support in Contract Labour Compliances

  • Providing day to day consultancy on various issues pertaining to Contract Labour;
  • Representing company in case of rejection / refusal / suspension / revocation of Principal Employer’s Registration / Labour License;
  • Assistance in issuance of Service Certificates to workmen;
  • Assistance at the time of inspection / search / enquiries conducted under the Contract Labour Act;
  • Correspondence / Liaisoning with Labour Departments.

Legal Support

  • Replying / Satisfying Show Cause Notices issued under the Contract Labour Act;
  • Appearing before the concerned authorities on behalf of the Principal Employer / Contractors in show-cause / adjudication proceedings;
  • Defending Prosecution Proceedings against the Principal Employer / Contractors under the Contract Labour Act;
  • Representing Principal Employer / Contractors before the Appellate Authority under the Contract Labour Act.