The Contract Labour (Regulation and Abolition) Act applies to the following entities:

• It applies to any establishment in which twenty or more workmen are employed on any day of the of the accounting year as contract labour.
• It applies to any contractor who employs or who employed twenty or more workers on any day of the accounting year.
• Also, it does not apply to the establishments if any work performed in the intermittent nature.
• It does not apply to the establishments if any work not performed for more than one-twenty days in a year.
• It does not apply to the establishments situated in the special economic zone(SEZ).
• It does not apply to the establishments if any work performed in the seasonal nature for more than sixty days in a year.

The central Government under section 3 is excepted to set up the Central Advisory Contract Labour Board on activities relating to the administration of the act.

The Central Board should consist of the following are

• The Chairman to be appointed by the Central Government.
• The Chief Labour Commissioner (Central).

Every establishment which proposes to employ contract workers for its work is required to obtain a certificate of registration from the appropriate Government.

The procedure for registering establishment employed with contract labour are explained here.

• The employer should approach the Registering office with Application for registration in Form No I and along with the receipt representing payment of the prescribed fee.
• If the application for registration is fulfilled in all aspects, the registering officer can register the establishment and grant the copy of the registered certificate in Form-II.

Every certificate of registration will contain the following

• The name and address of the establishment.
• The maximum number of workers to be contracted as contract labour in the establishment.
• The type of business.
• Other important particulars, if any

Every contractor who has employed twenty or more workers on any day of the month has to obtain a license for engaging contract labour working for any establishment.

The authorized licensing officer will issue the license as per the provisions under section12.

Procedure for renewal of the license is given below:

The contractor should approach the Licensing authority before 30 days of the expiry date of the license along with the application for the renewal of license in Form VII in multiple copies.

The required fee has to be remitted by the applicant. If the applicant does not submit prescribed date the renewal application, then the contractor will have to pay a fee of 25% more than the fee ordinary Payable.

The following responsibilities to be carried out by the employers are explained below:

• To get the registration of the Establishment.
• To engage workers only through licensed contractors.  The notice showing the name and address of the Inspector in the language of both English and Local Language, the rate of salary, date of payment.
• To retrieve the expenses involved from the contractor through bills payable.
• The principal employer has to choose a representative to be present at the time of disbursement of wages to the contract workers.
• It is the duty of such representative has to certify the amount paid as wages in the wage-register.
• Report the details relating to contract labour when the inspector requires.
• Maintain a register of Contractors (Form XII).
• Number of Contractors – Nature of Work performed.
• To send the information relating Annual Return (Form XXV) to licensing authority by 15th February.
• To submit returns for each contractor within 15 days of start or completion of work (Form VIA).
• To provide welfare and Health facilities, if the contract is not producing under Section 16 and section 20.

The following responsibilities to be carried out by the contractors are explained below:

• To get approval from the Employer.
• To obtain a License from the Licensing Authority.
• To submit the monthly printed bill to the firm for payment of the work done by him starting from the day of the month.
• To present the Name of the Inspector, Wages paid & Abstract of the Act.
• To maintain Muster roll, Wages, Deductions, Overtime, Fines, Advance, Wage slips Registers under Section 29.
• To provide Welfare and Health facilities such as Canteens, if labour is above a hundred members restrooms has to be compulsorily provided and also drinking water, urinals, latrines, first aid under section 19.
• To be responsible for the payment of wages before the 7th of each month under Section 21.
• To disburse the salaries in the presence of the representative of the employer.
• To distribute employment cards to all the workers by three days of the start of work.
• To send the half early return in form xxiv after 30 days from close of the half year, i.e. June and December.

Procedure for getting Registration by the Principal Employer and Licence by Contractor Under the Contract Labour(R&A) Act, 1970 and Odisha Rules, 1975.

1.Registration by the Principal Employer

• Principal Employer means:-
• in relation to any office or department of the Government or local authority, the head of that office or department or such other officer as the government or the local authority, as the case may be, may specify on this behalf
• in a factory, the owner or the occupier of the factory and where a person has been named as a manager of the factory under the Factories Act,1948, the person so named
• in a mine, the owner or the agent of the mine and where a person has been named as the manager of the mine, the person so named.
• In any other establishment, any person responsible for the supervision and control of the establishment.
• As per provisions of Sec. 7 of the Contract Labour(R&A) Act, 1970, every Principal Employer engaging 50 or more contract laborers in his establishment has to apply for registration of his establishment within 30 days
• The local District Labour Officers have been declared as Registering Officers who will grant registration.
• The employer has to apply in Form No. – 1 to the Registering Officer along with Treasury Challan in support of deposit of prescribed fee.
• The employer has to submit documents in support of his identity as well as the existence of his establishment along with the application.
• The fees prescribed for registration of establishment of Principal Employer are as follows:-

• Head of Account for the deposit of fees through Treasury Challan as hereunder:- “0230 – Labour & Employment. 101- Receipt under Labour Laws –106 – Fees under Contract Labour Act”

• The employer who desires to have the registration certificate amended shall make an application to the above authority stating therein the nature of amendment required and reasons thereof along with the registration certificate and treasury challan in support of deposit of the differential amount of fees if the no. of contract laborers proposed to be engaged is more than the no. for which he has taken the Registration Certificate for necessary amendment.

2.License to the contractors:-

• As per section 12 of the Contract Labour(R&A) Act, a contractor executing any contract work by engaging 50 or more contract laborers has to obtain a license under the Act.
• The local District Labour Officers have been declared as Licensing Officers who will grant licenses to the contractors.
• The contractor has to apply in Form No. – IV in triplicate to the Licensing Officer along with Treasury Challan in support of deposit of security deposit and prescribed fee and a certificate in Form-V from the Principal Employer to the effect that the applicant has been employed by him as a contractor in relation to his establishment and he undertakes to be bound by all the provisions are applicable to him as principal employer in respect of the employment of contract labor by the applicant. The applications shall be either personally delivered to the Registering Officer or sent to him by registered post.
• The employer has to submit documents in support of his identity, the existence of his establishment, and the work order from the principal employer along with the application.
• The fees prescribed for grant of Licenses and their renewal are as follows:-

• Security Deposit:- Security deposit @ Rs 100/- per contract labor for which license has been applied is to be deposited in the shape of treasury challan. The same shall be refunded if the contractor does not intend to renew his license and makes an application for a refund of the security deposit. If the Licensing Officer is satisfied that there is no breach of the condition of the license or there is no order under Section 14 for the forfeiture of security deposit has been made, he shall direct for the refund of the security deposit amount.
• Head of Account for the deposit of fees through Treasury challan are as hereunder:- “0230 – Labour & Employment. 101- Receipt under Labour Laws –106 – Fees under Contract Labour Act”

• Every license granted or renewed shall remain valid for twelve months from the date it is granted or renewed.
• The application for renewal shall be in Form-VII and shall be made, not less than 30 days from the date on which the license expires and if the application is so made, the license shall be deemed to have been renewed provided there is no change of conditions of the previous License issued.
• The employer who desires to have the license amended shall make an application to the above authority stating therein the nature of amendment required and reasons thereof along with the original license and treasury challan in support of deposit of the differential amount of fees amount if the no. of contract laborers proposed to be engaged in more than the no. for which he has taken the license for necessary amendment.