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.