Contract Labor Act

The Contract Labor Act 1970 was created to prevent exploitation of contract labor, improve work conditions and regulate the employment of contract labor in certain establishments. Labor is considered to be employed as Contract Labor when he is hired through a connection of a contractor. The Act applies to all firms where 20 or more labors are employed or were employed even for a single day during the 12 months as contract labor. Central and State advisory boards make sure that the Contract Labor Act is considered effective.

Where it does not apply?

The Contract Labor Act 1970 does not apply to firms where work is irregular or seasonal. If an organization by any chance falls in the region of ‘The Act’, then such employer and contractor have to apply for Registration of the Establishment and License. The Contract Labor Act also provides temporary registrations in such cases.


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