The Contract Labour Act was started with the goal to bring equal rights and regulations for the contractual workers. Usually, the working regulations of contract labour are different from the direct workers. Their employment relationship and the method of payment are also different as they are not paid directly by the Company. This labour are hired, managed and paid by the contractor.
So being a business owner, if your business hires contractor and contract employees, you have to follow the guidelines and different regulations of the Contract Labour Act.
Contract labour denotes a hired person, hired to work in a corporation through a contractor for a particular work and a limited tenure. The contract laborers are not employed straight by the organizations, and they do not have a specific wage. Establishments hire contractors who further recruit the workers for required jobs. To avoid the ill-treatment of workers in any companies and to make sure a restored working atmosphere for them, the contract labour regulation and elimination act were announced in 1970. This act, apart from modifying the benefit, fitness, disbursements of the contract labour, also has comprehensive requirements for the registration of the establishments and issuance of the license to the contractors.
The act is applicable to all those organizations which have more than or equal to 20 workers, currently working or formerly hired on any day of the year. It is also mandatory for every contractor who hires equal to or more than 20 workers in the year.
Every establishment which hires contract labourers for its work has to obtain a ROC (Registration Certificate) from the government. PionHR also helps in obtaining registration of such organizations:
Method for Obtaining The License
PionHR helps in following the complete procedure for obtaining the license. The key highlights are mentioned below: -