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The Contract Labour (Regulation and Abolition) Act, 1970


An Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith


To every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour

To every contractor who employees or who employed on any day of the preceding twelve months twenty or more workmen


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

Certificate of registration need to be displayed at the establishment by the Principal Employer


Every contractor & sub-contractor to whom this Act applies shall obtain a license from the licensing authority.

License is valid only for one year and should be renewed before the due date.

License shall be displayed prominently at the premises where the contract work is being carried on.


To provide welfare and health facilities

Right to recover the expenses involved from the Contractor through bills payable.

To pay wages in case Contractor fails to do so.


For obstructing the inspector or failing to produce registers etc. 3 moths' imprisonment or fine up to Rs. 500 or both

For violation of the provisions of Act or the Rules, imprisonment of 3 Months or fine up to Rs. 1000

On continuing contravention, additional fine up to Rs. 100 per day