Regularisation of Contract Workers

Press Information Bureau

Government of India

Ministry of Labour & Employment

07-August-2013 

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. 

This information was given by Minister of State for Labour & Employment Shri Kodikunnil Suresh in the Lok Sabha today in reply to a written question.