The Contract Labour (Regulation and Abolition) Act, 1970
# THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970                
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 ARRANGEMENT OF SECTIONS                                  

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CHAPTER I

PRELIMINARY

SECTIONS

1. Short title, extent, commencement and application.

2. Definitions.

CHAPTER II

THE ADVISORY BOARDS

3. Central Advisory Board.

4. State Advisory Board.

5. Power to constitute committees.

CHAPTER III

REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LABOUR

6. Appointment of registering officers.

7. Registration of certain establishments.

8. Revocation of registration in certain cases.

9. Effect of non-registration.

10. Prohibition of employment of contract labour.

CHAPTER IV

LICENSING OF CONTRACTORS

11. Appointment of licensing officers.

12. Licensing of contractors.

13. Grant of licences.

14. Revocation, suspension and amendment of licences.

15. Appeal.

CHAPTER V

WELFARE AND HEALTH OF CONTRACT LABOUR

16. Canteens.

17. Rest-rooms.

18. Other facilities.

19. First-aid facilities.

20. Liability of principal employer in certain cases.

21. Responsibility for payment of wages.


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CHAPTER VI

PENALTIES AND PROCEDURE

SECTIONS

22. Obstructions.

23. Contravention of provisions regarding employment of contract labour.

24. Other offences.

25. Offences by companies.

26. Cognizance of offences.

27. Limitation of prosecutions.

CHAPTER VII

MISCELLANEOUS

28. Inspecting staff.

29. Registers and other records to be maintained.

30. Effect of laws and agreements inconsistent with this Act.

31. Power to exempt in special cases.

32. Protection of action taken under this Act.

33. Power to give directions.

34. Power to remove difficulties.

35. Power to make rules.


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# THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

 ACT NO. 37 OF 1970

[5th September, 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.

BE it enacted by Parliament in the Twenty-first Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

**1. Short title, extent, commencement and application.—(1) This Act may be called the Contract**

Labour (Regulation and Abolition) Act, 1970.

(2) It extends to the whole of India.

(3) It shall come into force on such date[1]as the Central Government may, by notification in the

Official Gazette, appoint and different dates may be appointed for different provisions of this Act.

(4) It applies—

(a) 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;

(b) to every contractor who employees or who employed on any day of the preceding twelve

months twenty or more workmen:

Provided that the appropriate Government may, after giving not less than two months’ notice of its

intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any
establishment or contractor employing such number of workmen less than twenty as may be specified in
the notification.

(5) (a) It shall not apply to establishments in which work only of an intermittent or casual nature is

performed.

(b) If a question arises whether work performed in an establishment is of an intermittent or casual

nature, the appropriate Government shall decide that question after consultation with Central Board or, as
the case may be, a State Board, and its decision shall be final.

_Explanation.—For the purpose of this sub-section, work performed in an establishment shall not be_

deemed to be of an intermittent nature—

(i) if it was performed for more than one hundred and twenty days in the preceding twelve

months, or

(ii) if it is of a seasonal character and is performed for more than sixty days in a year.

**STATE AMENDMENT**

**Maharashtra**

**Amendment of section 1 of 37 of 1970.—In Section 1 of the Contract Labour (Regulation and**

Abolition) Act, 1970, in its application to the State of Maharashtra, in sub-section (4),—

(a) in clause (a), for the words “twenty or more workmen” the words “fifty or more workmen”

shall be substituted;

1. 10th February, 1971, vide notification No. G.S.R. 190, dated 1st February, 1971, see Gazette of India, Extraordinary, Part II,

sec. 3(i).


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(b) in clause (b), for the words “twenty or more workmen” the words “fifty or more workmen”

shall be substituted;

(c) in the proviso, for the words “less than twenty” the words “less than fifty” shall be substituted.

[Vide Maharashtra Act 2 of 2017, s. 2.]

**Andhra Pradesh**

**Amendment of section 1 central Act 37 of 1970.—In the Contract Labour (Regulation and**

Abolition) Act, 1970, in section 1, in sub-section (4), in clauses (a), (b) and the provisio thereunder, for
the word “twenty” the word “fifty” shall be substituted.

[Vide Andhra Pradesh Act 21 of 2015, s. 2.]

**Uttar Pradesh**

**In section 1 of the Contract Labour (Regulation and Abolition) Act, 1970 hereinafter referred**

**to as the principal Act, for sub-section (4) the following sub-section shall be substituted—**

“(4) It applies—

(a) to every establishment in which fifty or more workmen are employed or were employed

on any day of the preceding twelve months as contract labour;

(b) to every contractor who employs or who employed on any day of the preceding twelve

months fifty or more workmen.

Provided that the State Government may, after giving not less than two months’ notice of its

intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any
establishment or contractor employing such number of workmen less than fifty as may be
specified in the notification.”

[Vide the Uttar Pradesh Act 14 of 2018, s. 2]

**Union Territory Jammu and Kashmir and Ladakh**

**Section 1.—In sub-section (4), in clause (a), for "twenty", substitute "forty".**

[Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020,

Notification no. S.O. 3465(E), _dated (5-10-2020) and_ _vide Union Territory of Ladakh Reorganisation_
(Adaptation of Central Laws) Order, 2020, Notification No. S.O. 3774(E), dated (23-10-2020).]

**Rajasthan**

**Amendment of section 1, Central Act No. 37 of 1970.—For the existing sub-section (4) of section**

1 of the Contract Labour (Regulation and Abolition) Act, 1970 (Central Act No. 37 of 1970), in its
application to the State of Rajasthan, the following shall be substituted, namely:
“(4) It applies
(a) to every establishment in which fifty or more workmen are employed or were employed on

any day of the preceding twelve months as contract labour;

(b) to every contractor who employs or who employed on any day of the preceding twelve

months fifty or more workmen:

Provided that the State Government may, after giving not less than two months’ notice of its intention

so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or
contractor employing such number of workmen less than fifty as may be specified in the notification.”

[Vide Rajasthan Act 19 of 2014, s. 2]


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**Gujarat**

**Amendment of section 1 of 37 of 1970.—In the Contract Labour (Regulation and Abolition) Act, 1970, in its**

application to the State of Gujarat (hereinafter referred to as “the principal Act”), in section 1, sub-section (4),—

(i) in clause (a), for the word “twenty”, the word “fifty” shall be substituted;

(ii) in clause (b), for the word “twenty”, the word “fifty” shall be substituted;

(iii) in the proviso, for the word “twenty”, the word “fifty” shall be substituted.

[Vide Gujarat Act 2 of 2021, s. 2]
**2. Definitions.—(1) In this Act, unless the context otherwise requires,—**

1[(a) “appropriate Government” means,—

(i) in relation to an establishment in respect of which the appropriate Government under the

Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government;

(ii) in relation to any other establishment, the Government of the State in which that other

establishment is situate;]

(b) a workman shall be deemed to be employed as “contract labour” in or in connection with the

work of an establishment when he is hired in or in connection with such work by or through a
contractor, with or without the knowledge of the principal employer;

(c) “contractor”, in relation to an establishment, means a person who undertakes to produce a

given result for the establishment, other than a mere supply of goods of articles of manufacture to
such establishment, through contract labour or who supplies contract labour for any work of the
establishment and includes a sub-contractor;

(d) “controlled industry” means any industry the control of which by the Union has been declared

by any Central Act to be expedient in the public interest;

(e) “establishment” means—

(i) any office or department of the Government or a local authority, or

(ii) any place where any industry, trade, business, manufacture or occupation is carried on;

(f) “prescribed” means prescribed by rules made under this Act;

(g) “principal employer” means—

(i) in relation to any office or department of the Government or a 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 in this behalf,

(ii) in a factory, the owner or occupier of the factory and where a person has been named as

the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named,

(iii) in a mine, the owner or agent of the mine and where a person has been named as the

manager of the mine, the person so named,

(iv) in any other establishment, any person responsible for the supervision and control of the

establishment.

_Explanation.—For the purpose of sub-clause (iii) of this clause, the expressions “mine”, “owner” and_

“agent” shall have the meanings respectively assigned to them in clause (j), clause (l) and clause (c) of
sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952);

(h) “wages” shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of

Wages Act, 1936 (4 of 1936);

(i) “workman” means any person employed in or in connection with the work of any

establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical

1. Subs. by Act 14 of 1986, s. 2, for clause (a) (w.e.f. 28-1-1986).


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work for hire or reward, whether the terms of employment be express or implied, but does not include
any such person—

(A) who is employed mainly in a managerial or administrative capacity; or

(B) who, being employed in a superviory capacity draws wages exceeding five hundred

rupees per mensem or exercises, either by the nature of the duties attached to the office or by
reason of the powers vested in him, functions mainly of a managerial nature; or

(C) who is an out-worker, that is to say, a person to whom any articles or materials are given

out by or on behalf of the principal employer to be made up, cleaned, washed, altered,
ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the
trade or business of the principal employer and the process is to be carried out either in the home
of the out-worker or in some other premises, not being premises under the control and
management of the principal employer.

(2) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir* shall,

in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State.

CHAPTER II

THE ADVISORY BOARDS

**3. Central Advisory Board.—(1) The Central Government shall, as soon as may be, constitute a**

board to be called the Central Advisory Contract Labour Board (hereinafter referred to as the Central
Board) to advise the Central Government on such matters arising out of the administration of this Act as
may be referred to it and to carry out other functions assigned to it under this Act.

(2) The Central Board shall consist of—

(a) a Chairman to be appointed by the Central Government;

(b) the Chief Labour Commissioner (Central), ex officio;

(c) such number of members, not exceeding seventeen but not less than eleven, as the Central

Government may nominate to represent that Government, the Railways, the coal industry, the mining
industry, the contractors, the workmen and any other interests which, in the opinion of the Central
Government, ought to be represented on the Central Board.

(3) The number of persons to be appointed as members from each of the categories specified in

sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the
discharge of their functions by, and the manner of filling vacancies among, the members of the Central
Board shall be such as may be prescribed:

Provided that the number of members nominated to represent the workmen shall not be less than the

number of members nominated to represent the principal employers and the contractors.

**4. State Advisory Board.—(1) The State Government may constitute a board to be called the State**

Advisory Contract Labour Board (hereinafter referred to as the State Board) to advise the State
Government on such matters arising out of the administration of this Act as may be referred to it and to
carry out other functions assigned to it under this Act.

(2) The State Board shall consist of—

(a) a Chairman to be appointed by the State Government;

(b) the Labour Commissioner, _ex officio, or in his absence any other officer nominated by the_

State Government in that behalf;

*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu
and Kashmir and the Union territory of Ladakh.


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(c) such number of members, not exceeding eleven but not less than nine, as the State

Government may nominate to represent that Government, the industry, the contractors, the workmen
and any other interests which, in the opinion of the State Government, ought to be represented on the
State Board.

(3) The number of persons to be appointed as members from each of the categories specified in

sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the
discharge of their functions by, and the manner of filling vacancies among the, members of the State
Board shall be such as may be prescribed:

Provided that the number of members nominated to represent the workmen shall not be less than the

number of members nominated to represent the principal employers and the contractors.

**5. Power to constitute committees.—(1) The Central Board or the State Board, as the case may be,**

may constitute such committees and for such purpose or purposes as it may think fit.

(2) The committee constituted under sub-section (1) shall meet at such times and places and shall

observe such rules of procedure in regard to the transaction of business at its meetings as may be
prescribed.

(3) The members of a committee shall be paid such fees and allowances for attending its meetings as

may be prescribed:

Provided that no fees shall be payable to a member who is an officer of Government or of any

corporation established by any law for the time being in force.

CHAPTER III

REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LABOUR

**6. Appointment of registering officers.—The appropriate Government may, by an order notified in**

the Official Gazette—

(a) appoint such persons, being Gazetted Officers of Government, as it thinks fit to be registering

officers for the purposes of this Chapter; and

(b) define the limits, within which a registering officer shall exercise the powers conferred on him

by or under this Act.

**7. Registration of certain establishments.—(1) Every principal employer of an establishment to**

which this Act applies shall, within such period as the appropriate Government may, by notification in the
Official Gazette, fix in this behalf with respect to establishments generally or with respect to any class of
them, make an application to the registering officer in the prescribed manner for registration of the
establishment:

Provided that the registering officer may entertain any such application for registration after expiry of

the period fixed in this behalf, if the registering officer is satisfied that the applicant was prevented by
sufficient cause from making the application in time.

(2) If the application for registration is complete in all respects, the registering officer shall register

the establishment and issue to the principal employer of the establishment a certificate of registration
containing such particulars as may be prescribed.

**STATE AMENDMENTS**

**Uttar Pradesh**

**In section 7 of the principal Act, after sub-section (2) the following sub-section shall be inserted,**

**namely:-**

“(3) On submission of application in all respect the registering officer shall grant or refuse to grant or

object to grant registration within one day from the date of submission of application and in such manner
as may be prescribed. On the expiration of the said period the registration shall be deemed to be granted.”


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Applicant may submit his application on departmental web portal along with necessary documents

and payment of fee. In such case if the application is complete in all respect and the applicant is eligible,
automatic registration shall be granted by the web portal and registration certificate be sent through email;

Provided that if the registration is obtained by the misrepresentation of fact or concealment of fact or

on the basis of forged document then such registration shall be deemed null and void and can be cancelled
by registering officer and legal action shall be taken against applicant.”

[Vide the Uttar Pradesh Act 14 of 2018, s. 3]

**8. Revocation of registration in certain cases.—If the registering officer is satisfied, either on a**

reference made to him in this behalf or otherwise, that the registration of any establishment has been
obtained by misrepresentation or suppression of any material fact, or that for any other reason the
registration has become useless or ineffective and, therefore, requires to be revoked, the registering
officer may, after giving an opportunity to the principal employer of the establishment to be heard and
with the previous approval of the appropriate Government, revoke the registration.

**9. Effect of non-registration.—No principal employer of an establishment, to which this Act applies,**

shall—

(a) in the case of an establishment required to be registered under section 7, but which has not

been registered within the time fixed for the purpose under that section,

(b) in the case of an establishment the registration in respect of which has been revoked under

section 8,

employ contract labour in the establishment after the expiry of the period referred to inclause (a) or after
the revocation of registration referred to in clause (b), as the case may be.

**10. Prohibition of employment of contract labour.—(1) Notwithstanding anything contained in**

this Act, the appropriate Government may, after consultation with the Central Board or, as the case may
be, a State Board, prohibit, by notification in the Official Gazette, employment of contract labour in any
process, operation or other work in any establishment.

(2) Before issuing any notification under sub-section (1) in relation to an establishment, the

appropriate Government shall have regard to the conditions of work and benefits provided for the contract
labour in that establishment and other relevant factors, such as—

(a) whether the process, operation or other work is incidental to, or necessary for the industry,

trade, business, manufacture or occupation that is carried on in the establishment;

(b) whether it is of perennial nature, that is to say, it is of sufficient duration having regard to the

nature of industry, trade, business, manufacture or occupation carried on in that establishment;

(c) whether it is done ordinarily through, regular workmen in that establishment or an

establishment similar thereto;

(d) whether it is sufficient to employ considerable number of wholetime workmen.

_Explanation.—If a question arises whether any process or operation or other work is of perennial_

nature, the decision of the appropriate Government thereon shall be final.

CHAPTER IV

LICENSING OF CONTRACTORS

**11. Appointment of licensing officers.—The appropriate Government may, by an order notified in**

the Official Gazette,—

(a) appoint such persons, being Gazetted Officers of Government, as it thinks fit to be licensing

officers for the purposes of this Chapter; and

(b) define the limits, within which a licensing officer shall exercise the powers conferred on

licensing officers by or under this Act.


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**12. Licensing of contractors.—(1) With effect from such date as the appropriate Government may,**

by notification in the Official Gazette, appoint, no contractor to whom this Act applies, shall undertake or
execute any work through contract labour except under and in accordance with a licence issued in that
behalf by the licensing officer.

(2) Subject to the provisions of this Act, a licence under sub-section (1) may contain such conditions

including, in particular, conditions as to hours of work, fixation of wages and other essential amenities in
respect of contract labour as the appropriate Government may deem fit to impose in accordance with the
rules, if any, made under section 35 and shall be issued on payment of such fees and on the deposit of
such sum, if any, as security for the due performance of the conditions as may be prescribed.

**13. Grant of licences.—(1) Every application for the grant of a licence under sub-section (1) of**

section 12 shall be made in the prescribed form and shall contain the particulars regarding the location of
the establishment, the nature of process, operation or work for which contract labour is to be employed
and such other particulars as may be prescribed.

(2) The licensing officer may make such investigation in respect of the application received under

sub-section (1) and in making any such investigation the licensing officer shall follow such procedure as
may be prescribed.

(3) A licence granted under this Chapter shall be valid for the period specified therein and may be

renewed from time to time for such period and on payment of such fees and on such conditions as may be
prescribed.

**STATE AMENDMENTS**

**Uttar Pradesh**

**Amendment of Section 13.—In section 13 of the principal Act, after sub-section (3) the following**

sub section shall be inserted, namely:—

“(4) If an application for licenses is complete in all respects and the licensing officer fails to make any

order within a period of one day then it shall be deemed that the license has been granted to him.”

[Vide the Uttar Pradesh Act 14 of 2018, s. 4]

**14. Revocation, suspension and amendment of licences.—(1) If the licensing officer is satisfied,**

either on a reference made to him in this behalf or otherwise, that—

(a) alicence granted under section 12 has been obtained by misrepresentation or suppression of

any material fact, or

(b) the holder of a licence has, without reasonable cause, failed to comply with the conditions

subject to which the licence has been granted or has contravened any of the provisions of this Act or
the rules made thereunder,

then, without prejudice to any other penalty to which the holder of the licence may be liable under this
Act, the licensing officer may, after giving the holder of the licence an opportunity of showing cause,
revoke or suspend the licence or forfeit the sum, if any, or any portion thereof deposited as security for
the due performance of the conditions subject to which the licence has been granted.

(2) Subject to any rules that may be made in this behalf, the licensing officer may vary or amend a

licence granted under section 12.

**15. Appeal.—(1) Any person aggrieved by an order made under section 7, section 8, section 12 or**

section 14 may, within thirty days from the date on which the order is communicated to him, prefer an
appeal to an appellate officer who shall be a person nominated in this behalf by the appropriate
Government:

Provided that the appellate officer may entertain the appeal after the expiry of the said period of thirty

days, if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the appellant

an opportunity of being heard, dispose of the appeal as expeditiously as possible.


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CHAPTER V

WELFARE AND HEALTH OF CONTRACT LABOUR

**16. Canteens.—(1) The appropriate Government may make rules requiring that in every**

establishment—

(a) to which this Act applies,

(b) wherein work requiring employment of contract labour is likely to continue for such period as

may be prescribed, and

(c) wherein contract labour numbering one hundred or more is ordinarily employed by a

contractor,

one or more canteens shall be provided and maintained by the contractor for the use of such contract
labour.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for—

(a) the date by which the canteens shall be provided;

(b) the number of canteens that shall be provided, and the standards in respect of construction,

accommodation, furniture and other equipment of the canteens; and

(c) the foodstuffs which may be served therein and the charges which may be made therefor.

**17. Rest-rooms.—(1) In every place wherein contract labour is required to halt at night in connection**

with the work of an establishment—

(a) to which this Act applies, and

(b) in which work requiring employment of contract labour is likely to continue for such period as

may be prescribed,

there shall be provided and maintained by the contractor for the use of the contract labour such number of
rest-rooms or such other suitable alternative accommodation within such time as may be prescribed.

(2) The rest-rooms or the alternative accommodation to be provided under sub-section (1) shall be

sufficiently lighted and ventilated and shall be maintained in a clean and comfortable condition.

**18. Other facilities.—It shall be the duty of every contractor employing contract labour in connection**

with the work of an establishment to which this Act applies, to provide and maintain—

(a) a sufficient supply of wholesome drinking water for the contract labour at convenient places;

(b) a sufficient number of latrines and urinals of the prescribed types so situated as to be

convenient and accessible to the contract labour in the establishment; and

(c) washing facilities.

**19. First-aid facilities.—There shall be provided and maintained by the contractor so as to be readily**

accessible during all working hours a first-aid box equipped with the prescribed contents at every place
where contract labour is employed by him.

**20. Liability of principal employer in certain cases.—(1) If any amenity required to be provided**

under section 16, section 17, section 18 or section 19 for the benefit of the contract labour employed in an
establishment is not provided by the contractor within the time prescribed therefor, such amenity shall be
provided by the principal employer within such time as may be prescribed.

(2) All expenses incurred by the principal employer in providing the amenity may be recovered by the

principal employer from the contractor either by deduction from any amount payable to the contractor
under any contract or as a debt payable by the contractor.

**21. Responsibility for payment of wages.—(1) A contractor shall be responsible for payment of**

wages to each worker employed by him as contract labour and such wages shall be paid before the expiry
of such period as may be prescribed.


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(2) Every principal employer shall nominate a representative duly authorised by him to be present at

the time of disbursement of wages by the contractor and it shall be the duty of such representative to
certify the amounts paid as wages in such manner as may be prescribed.

(3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the

authorised representative of the principal employer.

(4) In case the 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 and recover the
amount so paid from the contractor either by deduction from any amount payable to the contractor under
any contract or as a debt payable by the contractor.

CHAPTER VI

PENALTIES AND PROCEDURE

**22. Obstructions.—(1) Whoever obstructs an inspector in the discharge of his duties under this Act**

or refuses or wilfully neglects to afford the inspector any reasonable facility for making any inspection,
examination, inquiry or investigation authorised by or under this Act in relation to an establishment to
which, or a contractor to whom, this Act applies, shall be punishable with imprisonment for a term which
may extend to three months, or with fine which may extend to five hundred rupees, or with both.

(2) Whoever wilfully refuses to produce on the demand of an inspector any register or other

document kept in pursuance of this Act or prevents or attempts to prevent or does anything which he has
reason to believe is likely to prevent any person from appearing before or being examined by an inspector
acting in pursuance of his duties under this Act, shall be punishable with imprisonment for a term which
may extend to three months, or with fine which may extend to five hundred rupees, or with both.

**23. Contravention of provisions regarding employment of contract labour.—Whoever**

contravenes any provision of this Act or of any rules made thereunder prohibiting, restricting or
regulating the employment of contract labour, or contravenes any condition of a licence granted under this
Act, shall be punishable with imprisonment for a term which may extend to three months, or with fine
which may extend to one thousand rupees, or with both, and in the case of a continuing contravention
with an additional fine which may extend to one hundred rupees for every day during which such
contravention continues after conviction for the first such contravention.

**24. Other offences.—If any person contravenes any of the provisions of this Act or of any rules made**

thereunder for which no other penalty is elsewhere provided, he shall be punishable with imprisonment
for a term which may extend to three months, or with fine which may extend to one thousand rupees, or
with both.

**25. Offences by companies.—(1) If the person committing an offence under this Act is a company,**

the company as well as every person in charge of, and responsible to, the company for the conduct of its
business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall
be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any

punishment if he proves that the offence was committed without his knowledge or that he exercised all
due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been

committed by a company and it is proved that the offence has been committed with the consent or
connivance of, or that the commission of the offence is attributable to any neglect on the part of any
director, manager, managing agent or any other officer of the company, such director, manager, managing
agent or such other officer shall also be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly.

_Explanation.—For the purpose of this section—_

(a) “company” means any body corporate and includes a firm or other association of individuals;

and


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(b) “director”, in relation to a firm, means a partner in the firm.

**STATE AMENDMENT**

**Uttar Pradesh**

**Insertion of new Section 25-A.—After section-25 of the principal Act the following section shall be**

inserted, namely:—

**“25-A.** (1) Any offence committed under this Act, punishable with fine or imprisonment up to six

months or with both may, on an application of the accuses person, either before or after institution of any
prosecution, be compounded by such Competent Officer, as the State Government may by notification,
specify for a sum of fifty percent of the maximum fine provided for such offence, in such manner as may
be prescribed:

Provided that the provision of compounding under this section shall be available only for commission

of first offence.

(2) Every application for the compounding of an offence shall be made in such manner as may be

prescribed.

(3) Where any offence is compounded before the institution of any prosecution, no prosecution shall

be instituted in relation to such offence, against the offender in relation to whom the offence is so
compounded.

(4) Where the composition of any offence is made after the institution of any prosecution, such

composition shall be brought by the officer referred to in sub-section (1) in writing to the notice of the
court in which prosecution is pending and on such notice of the composition of the offence being given,
the person against whom the offence is so compounded shall be discharged.”

[Vide the Uttar Pradesh Act 14 of 2018, s. 5]

**Union Territory Of Ladakh**

**After section 25, insert-**

**"25A. Compounding of offences.--(1) Any offence punishable under sub-sections (1) and (2) of**

section 22 and section 24 may, either before or after the institution of the persecution, on an
application by the alleged offender, be compounded by such officer or authority as the appropriate
Government may by notification in the official Gazette, specify in this behalf for such amount as
specified in the Table below:-
**TABLE**

S. No. Section Compounding amount

1 2 3

1 22(1), 22(2) and 24 Number of workmen employed in the Amount not exceeding

industry

1 to 50 Rs. 5000/
51 to 100 Rs. 8,000/
101 to 500 Rs. 12,000/
More than 500 Rs. 16,000/-:

Provided that the appropriate Government may, by notification in the Official Gazette, amend the

said specified compounding amount:

|Col1|Col2|TABLE|Col4|
|---|---|---|---|
|S. No.|Section|Compounding amount||
|1|2|3||
|1|22(1), 22(2) and 24|Number of workmen employed in the industry|Amount not exceeding|
|||1 to 50|Rs. 5000/-|
|||51 to 100|Rs. 8,000/-|
|||101 to 500|Rs. 12,000/-|
|||More than 500|Rs. 16,000/-:|


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Provided further that the offences of the same nature committed by the same offender for more

than three occasions shall not be compoundable:

Provided also that such offences shall be compounded only after the alleged offender has acted to

the satisfaction of such officer or authority that such offence is not continued any further:

Provided also that when an offence is compounded on an application by the principal employer or

contractor, then seventy-five per cent. of the compounding amount received from him, shall be paid
to the concerned employee or equally amongst the employees and if any employees are not
identifiable, then the remaining amount shall be deposited in such manner as may be notified by the
appropriate Government.

(2) Where an offence has been compounded under sub-section (1), no further proceedings shall

be taken against the offender in respect of such offence and the offender, if in custody, shall be
released or discharged."

[Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, Notification
no. S.O. 3465(E), dated (5-10-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of
Central Laws) Order, 2020, Notification no. S.O. 3774(E), dated (23-10-2020).]

**26. Cognizance of offences.—No court shall take cognizance of any offence under this Act except on**

a complaint made by, or with the previous sanction in writing of, the inspector and no court inferior to
that of a Presidency Magistrate or a magistrate of the first class shall try any offence punishable under this
Act.

**27. Limitation of prosecutions.—No court shall take cognizance of an offence punishable under this**

Act unless the complaint thereof is made within three months from the date on which the alleged
commission of the offence came to the knowledge of an inspector:

Provided that where the offence consists of disobeying a written order made by an inspector,

complaint thereof may be made within six months of the date on which the offence is alleged to have
been committed.

CHAPTER VII

MISCELLANEOUS

**28. Inspecting staff.—(1) The appropriate Government may, by notification in the Official Gazette,**

appoint such persons as it thinks fit to be inspectors for the purposes of this Act, and define the local
limits within which they shall exercise their powers under this Act.

(2) Subject to any rules made in this behalf, an inspector may, within the local limits for which he is

appointed—

(a) enter, at all reasonable hours, with such assistance (if any), being persons in the service of the

Government or any local or other public authority as he thinks fit, any premises or place where
contract labour is employed, for the purpose of examining any register or record or notices required to
be kept or exhibited by or under this Act or rules made thereunder, and require the production thereof
for inspection;

(b) examine any person whom he finds in any such premises or place and who, he has reasonable

cause to believe, is a workman employed therein;

(c) require any person giving out work and any workman, to give any information, which is in his

power to give with respect to the names and addresses of the persons to, for and from whom the work
is given out or received, and with respect to the payments to be made for the work;

(d) seize or take copies of such register, record of wages or notices or portions thereof as he may

consider relevant in respect of an offence under this Act which he has reason to believe has been
committed by the principal employer or contractor; and


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(e) exercise such other powers as may be prescribed.

(3) Any person required to produce any document or thing or to give any information required by an

inspector under sub-section (2) shall be deemed to be legally bound to do so within the meaning of
section 175 and section 176 of the Indian Penal Code (45 of 1860).

(4) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), shall, so far as may be, apply

to any search or seizure under sub-section (2) as they apply to any search or seizure made under the
authority of a warrant issued under section 98 of the said Code.

**29. Registers and other records to be maintained.—(1) Every principal employer and every**

contractor shall maintain such registers and records giving such particulars of contract labour employed,
the nature of work performed by the contract labour, the rates of wages paid to the contract labour and
such other particulars in such form as may be prescribed.

(2) Every principal employer and every contractor shall keep exhibited in such manner as may be

prescribed within the premises of the establishment where the contract labour is employed, notices in the
prescribed form containing particulars about the hours of work, nature of duty and such other information
as may be prescribed.

**30. Effect of laws and agreements inconsistent with this Act.—(1) The provisions of this Act shall**

have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of
any agreement or contract of service, or in any standing orders applicable to the establishment whether
made before or after the commencement of this Act:

Provided that where under any such agreement, contract of service or standing orders the contract

labour employed in the establishment are entitled to benefits in respect of any matter which are more
favourable to them than those to which they would be entitled under this Act, the contract labour shall
continue to be entitled to the more favourable benefits in respect of that matter, notwithstanding that they
receive benefits in respect of other matters under this Act.

(2) Nothing contained in this Act shall be construed as precluding any such contract labour from

entering into an agreement with the principal employer or the contractor, as the case may be, for granting
them rights or privileges in respect of any matter which are more favourable to them than those to which
they would be entitled under this Act.

**31. Power to exempt in special cases.—The appropriate Government may, in the case of an**

emergency, direct, by notification in the Official Gazette, that subject to such conditions and restrictions,
if any, and for such period or periods, as may be specified in the notification, all or any of the provisions
of this Act or the rules made thereunder shall not apply to any establishment or class of establishments or
any class of contractors.

**32. Protection of action taken under this Act.—(1) No suit, prosecution or other legal proceedings**

shall lie against any registering officer, licensing officer or any other Government servant or against any
member of the Central Board or the State Board, as the case may be, for anything which is in good faith
done or intended to be done in pursuance of this Act or any rule or order made thereunder.

(2) No suit or other legal proceedings shall lie against the Government for any damage caused or

likely to be caused by anything which is in good faith done or intended to be done in pursuance of this
Act or any rule or order made thereunder.

**33. Power to give directions.—The Central Government may give directions to the Government of**

any State as to the carrying into execution in the State of the provisions contained in this Act.

**34. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this**

Act, the Central Government may, by order published in the Official Gazette, make such provisions not
inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the
difficulty.

**35. Power to make rules.—(1) The appropriate Government may, subject to the condition of**

previous publication, make rules for carrying out the purposes of this Act.


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(2) In particular, and without prejudice to the generality of the foregoing power, such rules may

provide for all or any of the following matters, namely:—

(a) the number of persons to be appointed as members representing various interests on the

Central Board and the State Board, the term of their office and other conditions of service, the
procedure to be followed in the discharge of their functions and the manner of filling vacancies;

(b) the times and places of the meetings of any committee constituted under this Act, the

procedure to be followed at such meetings including the quorum necessary for the transaction of
business, and the fees and allowances that may be paid to the members of a committee;

(c) the manner in which establishments may be registered under section 7, the levy of a fee

therefor and the form of certificate of registration;

(d) the form of application for the grant or renewal of a licence under section 13 and the

particulars it may contain;

(e) the manner in which an investigation is to be made in respect of an application for the grant of

a licence and the matters to be taken into account in granting or refusing a licence;

(f) the form of a licence which may be granted or renewed under section 12 and the conditions

subject to which the licence may be granted or renewed, the fees to be levied for the grant or renewal
of a licence and the deposit of any sum as security for the performance of such conditions;

(g) the circumstances under which licences may be varied or amended under section 14;

(h) the form and manner in which appeals may be filed under section 15 and the procedure to be

followed by appellate officers in disposing of the appeals;

(i) the time within which facilities required by this Act to be provided and maintained may be so

provided by the contractor and in case of default on the part of the contractor, by the principal
employer;

(j) the number and types of canteens, rest-rooms, latrines and urinals that should be provided and

maintained;

(k) the type of equipment that should be provided in the first-aid boxes;
(l) the period within which wages payable to contract labour should be paid by the contractor

under sub-section (1) of section 21;

(m) the form of registers and records to be maintained by principal employers and contractors;
(n) the submission of returns, forms in which, and the authorities to which, such returns may be

submitted;

(o) the collection of any information or statistics in relation to contract labour; and
(p) any other matter which has to be, or may be, prescribed under this Act.

(3) Every rule made by the Central Government under this Act shall be laid as soon as may be after it

is made, before each House of Parliament while it is in session for a total period of thirty days which may
be comprised in one session or in two successive sessions, and if before the expiry of the session in which
it is so laid or the session immediately following, both Houses agree in making any modification in the
rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in
such modified form or be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done under that rule.

1[(4) Every rule made by the State Government under this Act shall be laid, as soon as may be after it

is made, before the State Legislature.]

1. Ins. by Act 4 of 2005, s. 2 and the Schedule (w.e.f. 11-1-2005).


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