Contract Labour Act, 1970

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PageContents[hide]
PREAMBLE
1.SHORTTITLE,EXTENT,COMMENCEMENTANDAPPLICATION.
2.DEFINITIONS.
3.CENTRALADVISORYBOARD.
4.STATEADVISORYBOARD.
5.POWERTOCONSTITUTECOMMITTEES.
6.APPOINTMENTOFREGISTERINGOFFICERS.
7.REGISTRATIONOFCERTAIN,ESTABLISHMENTS.
8.REVOCATIONOFREGISTRATIONINCERTAINCASES.
http://www.vakilno1.com/bareacts/contractlabouract/contractlabouract.html
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9.EFFECTOFNONREGISTRATION.
10.PROHIBITIONOFEMPLOYMENTOFCONTRACTLABOUR.
11.APPOINTMENTOFLICENSINGOFFICERS.
12.LICENSINGOFCONTRACTORS.
13.GRANTOFLICENCES.
14.REVOCATION,SUSPENSIONANDAMENDMENTOFLICENCES.
15.APPEAL.
16.CANTEENS.
17.RESTROOMS.
18.OTHERFACILITIES.
19.FIRSTAIDFACILITIES.
20.LIABILITYOFPRINCIPALEMPLOYERINCERTAINCASES.
21.RESPONSIBILITYFORPAYMENTOFWAGES.
22.OBSTRUCTIONS.
23.CONTRAVENTIONOFPROVISIONSREGARDINGEMPLOYMENTOF
CONTRACTLABOUR.
24.OTHEROFFENCES.
25.OFFENCESBYCOMPANIES.
26.COGNIZANCEOFOFFENCES.
27.LIMITATIONOFPROSECUTIONS.
28.INSPECTINGSTAFF.
29.REGISTERSANDOTHERRECORDSTOBEMAINTAINED.
30.EFFECTOFLAWSANDAGREEMENTSINCONSISTENTWITHTHISACT.
31.POWERTOEXEMPTINSPECIALCASES.
32.PROTECTIONOFACTIONTAKENUNDERTHISACT.
33.POWERTOGIVEDIRECTIONS.
34.POWERTOREMOVEDIFFICULTIES.
35.POWERTOMAKERULES.
PREAMBLE
[37OF1970]
AnActtoregulatetheemploymentofcontractlabourincertainestablishmentsandtoprovideforits
abolitionincertaincircumstancesandformattersconnectedtherewith.
BeitenactedbyParliamentintheTwentyfirstYearoftheRepublicofIndiaasfollows:
1. SHORT TITLE, EXTENT, COMMENCEMENT AND

APPLICATION.
(1)ThisActmaybecalledtheContractLabour(RegulationandAbolition)Act,1970.
(2)ItextendstothewholeofIndia.
(3) It shall come into force on such date1 as the Central Government may, by notification in the
OfficialGazette,appointanddifferentdatesmaybeappointedfordifferentprovisionsofthisAct.
(4)Itapplies(a)toeveryestablishmentinwhichtwentyormoreworkmenareemployedorwere
employedonanydayoftheprecedingtwelvemonthsascontractlabour
(b) to every contractor who employs or who employed on any day of the preceding twelve months
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twentyormoreworkmen:ProvidedthattheappropriateGovernmentmay,aftergivingnotlessthan
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
thantwentyasmaybespecifiedinthenotification.
(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,theappropriateGovernmentshalldecidethequestionafterconsultationwiththeCentralBoard
or,asthecasemaybe,aStateBoard,anditsdecisionshallbefinal.
Explanation:Forthepurposeofthissubsection,workperformedinanestablishmentshallnotbe
deemedtobeofanintermittentnature(i)ifitwasperformedformorethanonehundredandtwenty
daysintheprecedingtwelvemonths,or
(ii)ifitisofaseasonalcharacterandisperformedformorethansixtydaysinayear.
STATEAMENDMENT
Maharashtra.Insection1,insubsection(5),afterclause(b),addthefollowingclause,namely:
(c)Notwithstanding anything contained in clause(b)orany other provisionsof thisAct,thework
performedorcarriedoutintheareaofSpecialEconomicZone(declaredassuchbytheGovernment
ofIndia),whichisofancillarynaturesuchascanteen,gardening,cleaning,security,courierservices,
transport of raw material and finished products, or loading and unloading of goods within the
premisesofafactoryorestablishmentswhicharedeclared100percent.exportunitsbyGovernment,
requiredtoachievetheobjectiveofaprincipalestablishmentinthesaidarea,shallbedeemedtobeof
temporary and intermittent nature irrespective of the period of performance of the work by the
workersinsuchancillaryestablishments.
[Vide The Contract Labour (Regulation and Abolition) (Maharashtra Amendment) Act, 2005
(MaharashtraAct13of2006),sec.2(w.e.f.252006).]
COMMENTS
TheActisapieceofsociallegislationforthewelfareoflabourerswhoseconditionsofservicearenot
at all satisfactory and it should, therefore, be literally construed Lionel Edward Ltd. v. Labour
EnforcementOfficer,1977LabIC1037(Cal).
1. Came into force on 1021971, vide G.S.R. 190, dated 1st February, 1971, published in the
GazetteofIndia,Extra.,Pt.II,Sec.3(i),dated10thFebruary,1971.
2.DEFINITIONS.
(1)InthisAct,unlessthecontextotherwiserequires,
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,theCentralGovernment(ii)inrelationtoanyotherestablishment,theGovernmentof
theStateinwhichthatotherestablishmentissituated
(b)aworkmanshallbedeemedtobeemployedascontractlabourinorinconnectionwiththework
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ofanestablishmentwhenheishiredinorinconnectionwithsuchworkbyorthroughacontractor,
withorwithouttheknowledgeoftheprincipalemployer
(c)contractor,inrelationtoanestablishment,meansapersonwhoundertakestoproduceagiven
result for the establishment, other than a mere supply of goods or articles of manufacture to such
establishment, through contract labour or who supplies contract labour for any work of the
establishmentandincludesasubcontractor
(d)controlledindustrymeansanyindustrythecontrolofwhichbytheUnionhasbeendeclaredby
anyCentralActtobeexpedientinthepublicinterest
(e)establishmentmeans(i)anyofficeordepartmentoftheGovernmentoralocalauthority,or
(ii)anyplacewhereanyindustry,trade,business,manufactureoroccupationiscarriedon
(f)prescribedmeansprescribedbyrulesmadeunderthisAct
(g)principalemployermeans(i)inrelationtoanyofficeordepartmentoftheGovernmentora
localauthority,theheadofthatofficeordepartmentorsuchotherofficerastheGovernmentorthe
localauthority,asthecasemaybe,mayspecifyinthisbehalf,
(ii) in a factory, the owner or occupier of the factory and where a person has been named as the
managerofthefactoryundertheFactoriesAct,1948(63of1948),thepersonsonamed,
(iii)inamine,theowneroragentofthemineandwhereapersonhasbeennamedasthemanagerof
themine,thepersonsonamed,
(iv) in any other establishment, any person responsible for the supervision and control of the
establishment.
Explanation:Forthepurposeofsubclause(iii)ofthisclause,theexpressionsmine,ownerand
agentshallhavethemeaningsrespectivelyassignedtotheminclause(j),clause(l)andclause(c)of
subsection(1)ofsection2oftheMinesAct,1952(35of1952)
(h)wagesshallhavethemeaningassignedtoitinclause(vi)ofsection2ofthePaymentofWages
Act,1936(4of1936)
(i)workmanmeans,anypersonemployed,inorinconnectionwiththeworkofanyestablishment
todoanyskilled,semiskilledorunskilledmanual,supervisory,technicalorclericalworkforhireor
reward,whetherthetermsofemploymentbeexpressorimpliedbutdoesnotincludeanysuchperson
(A)whoisemployedmainlyinamanagerialoradministrativecapacityor
(B)who,beingemployedinasupervisorycapacitydrawswagesexceedingfivehundredrupeesper
mensem or exercises, either by the nature of the duties attached to the office or by reason of the
powersvestedinhim,functionsmainlyofamanagerialnatureor
(C)whoisanoutworker,thatistosay,apersontowhomanyarticlesandmaterialsaregivenoutby
oronbehalfoftheprincipalemployertobemadeup,cleaned,washed,altered,ornamented,finished,
repaired, adapted or otherwise processed for sale for the purposes of the trade or business of the
principalemployerandtheprocessistobecarriedouteitherinthehomeoftheoutworkerorinsome
otherpremises,notbeingpremisesunderthecontrolandmanagementoftheprincipalemployer.
(2)AnyreferenceinthisActtoalawwhichisnotinforceintheStateofJammuandKashmirshall,
inrelationtothatState,beconstruedasareferencetothecorrespondinglaw,ifany,inforceinthat
State.
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STATEAMENDMENT
Andhra Pradesh. In section 2, in subsection (1), after clause (d), insert the following clause,
namely:
(dd)coreactivityofanestablishmentmeansanyactivityforwhichtheestablishmentissetupand
includesanyactivitywhichisessentialornecessarytothecoreactivity,butdoesnotinclude,
(1)sanitationworks,includingsweeping,cleaning,dustingandcollectionanddisposalofallkindsof
waste
(2)watchandwardservicesincludingsecurityservice
(3)canteenandcateringservices
(4)loadingandunloadingoperations
(5)runningofhospitals,educationalandtraininginstitutions,guesthouses,clubsandthelikewhere
theyareinthenatureofsupportservicesofanestablishment
(6)courierserviceswhichareinnatureofsupportservicesofanestablishment
(7)civilandotherconstructionalworks,includingmaintenance
(8)gardeningandmaintenanceoflawns,etc.
(9) house keeping and laundry services, etc., where they are in nature support services of an
establishment
(10)transportservicesincludingambulanceservices
(11)anyactivityofintermittentinnatureevenifthatconstitutesacoreactivityofanestablishment
and
(12)anyotheractivitywhichisincidentaltothecoreactivity:
Providedthattheaboveactivitiesbythemselvesarenotthecoreactivitiesofsuchestablishment.
[ Vide Contract Labour (Regulation and Abolition) (Andhra Pradesh) (Amendment) Act, 2003
(AndhraPradeshAct10of2003),sec.2.]
COMMENTS
IftheworkmanisnothiredthroughacontractorholdingavalidlicenceundertheAct,hewouldbea
workmanemployedbythemanagementitselfWorkmenofBest&CromptonIndustriesLtd.v.Best
andCromptonEngineeringLtd.,(1985)IILLN169(Mad).
1.Subs.byAct14of1986,sec.2,forclause(a)(w.r.e.f.2811986).
3.CENTRALADVISORYBOARD.
(1) The Central Government shall as soon as may be, constitute a board to be called the Central
AdvisoryContractLabourBoard(hereinafterreferredtoastheCentralBoard)toadvisetheCentral
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GovernmentonsuchmattersarisingoutoftheadministrationofthisActasmaybereferredtoitand
tocarryoutotherfunctionsassignedtoitunderthisAct.
(2)TheCentralBoardshallconsistof(a)aChairmantobeappointedbytheCentralGovernment
(b)theChiefLabourCommissioner(Central),exofficio
(c) such number of members, not exceeding seventeen but not less than eleven, as the Central
GovernmentmaynominatetorepresentthatGovernment,theRailways,thecoalindustry,themining
industry, the contractors, the workmen and, any other interests which, in the opinion of the Central
Government,oughttoberepresentedontheCentralBoard.
(3)Thenumberofpersonstobeappointedasmembersfromeachofthecategoriesspecifiedinsub
section(2),thetermofofficeandotherconditionsofserviceof,theproceduretobefollowedinthe
discharge of their functions by, and the manner of filling vacancies among, the members of the
CentralBoardshallbesuchasmaybeprescribed:
Providedthatthenumberofmembersnominatedtorepresenttheworkmenshallnotbelessthanthe
numberofmembersnominatedtorepresenttheprincipalemployersandthecontractors.
stateamendment
AndhraPradesh.Omitsection3.
[Vide Contract Labour (Regulation and Abolition) (Andhra Pradesh) (Amendment) Act, 2003
4.STATEADVISORYBOARD.
(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
arisingoutoftheadministrationofthisActasmaybereferredtoitandtocarryoutotherfunctions
assignedtoitunderthisAct.
(2)TheStateBoardshallconsistof(a)aChairmantobeappointedbytheStateGovernment
(b)theLabourCommissioner,exofficio,orinhisabsenceanyotherofficernominatedbytheState
Governmentinthatbehalf
(c)suchnumberofmembers,notexceedingelevenbutnotlessthannine,astheStateGovernment
maynominatetorepresentthatGovernment,theindustry,thecontractors,theworkmenandanyother
interestswhich,intheopinionoftheStateGovernment,oughttoberepresentedontheStateBoard.
(3)Thenumberofpersonstobeappointedasmembersfromeachofthecategoriesspecifiedinsub
section(2),thetermofofficeandotherconditionsofserviceof,theproceduretobefollowedinthe
dischargeoftheirfunctionsby,andthemanneroffillingvacanciesamong,themembersoftheState
Boardshallbesuchasmaybeprescribed:
Providedthatthenumberofmembersnominatedtorepresenttheworkmenshallnotbelessthanthe
numberofmembersnominatedtorepresenttheprincipalemployeesandthecontractors.
stateamendment
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5.POWERTOCONSTITUTECOMMITTEES.
(1)TheCentralBoardortheStateBoard,asthecasemaybe,mayconstitutesuchcommitteesandfor
suchpurposeorpurposesasitmaythinkfit.
(2) The committee constituted under subsection (1) shall meet at such time and places and shall
observe such rules of procedure in regard to the transaction of business at its meetings as may be
prescribed.
(3)Themembersofacommitteeshallbepaidsuchfeesandallowancesforattendingitsmeetingsas
may be prescribed : Provided that no fees shall be payable to a member who is an officer of
Governmentorofanycorporationestablishedbyanylawforthetimebeinginforce.
stateamendment
6.APPOINTMENTOFREGISTERINGOFFICERS.
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
purposesofthisChapterand
(b)definethelimits,withinwhicharegisteringofficershallexercisethepowersconferredonhimby
orunderthisAct.
7.REGISTRATIONOFCERTAIN,ESTABLISHMENTS.
(1)EveryprincipalemployerofanestablishmenttowhichthisActappliesshall,withinsuchperiodas
theappropriateGovernmentmay,bynotificationintheOfficialGazette,fixinthisbehalfwithrespect
toestablishmentsgenerallyorwithrespecttoanyclassofthem,makeanapplicationtotheregistering
officerintheprescribedmannerforregistrationoftheestablishment:
Providedthattheregisteringofficermayentertainanysuchapplicationforregistrationafterexpiryof
theperiodfixedinthisbehalfiftheregisteringofficerissatisfiedthattheapplicantwaspreventedby
sufficientcausefrommakingtheapplicationintime.
(2)Iftheapplicationforregistrationiscompleteinallrespects,theregisteringofficershallregister
theestablishmentandissuetotheprincipalemployeroftheestablishmentacertificateofregistration
containingsuchparticularsasmaybeprescribed.
COMMENTS
(i)Contraventionoftheprovisionsofsection7isanoffenceDeenaNathv.NationalFertilizers,1992
LLR46.
(ii)AnestablishmentofContractLabourrequiredregistrationundersection7oftheActAnapalv.
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J.S.E.B.,2003(2)LLJ335(Jhar).
8. REVOCATION OF REGISTRATION IN CERTAIN

CASES.
Iftheregisteringofficerissatisfied,eitheronareferencemadetohiminthisbehalforotherwise,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
principalemployeroftheestablishmenttobeheardandwiththepreviousapprovaloftheappropriate
Government,revoketheregistration.
9.EFFECTOFNONREGISTRATION.
No principal employer of an establishment, to which this Act applies, shall (a) in the case of an
establishmentrequiredtoberegisteredundersection7,butwhichhasnotbeenregisteredwithinthe
timefixedforthepurposeunderthatsection,
(b)inthecaseofanestablishmenttheregistrationinrespectofwhichhasbeenrevokedundersection
8,employcontractlabourintheestablishmentaftertheexpiryoftheperiodreferredtoinclause(a)or
aftertherevocationofregistrationreferredtoinclause(b),asthecasemaybe.
10. PROHIBITION OF EMPLOYMENT OF CONTRACT

LABOUR.
(1) Notwithstanding anything contained in this Act, the appropriate Government may, after
consultationwiththeCentralBoardor,asthecasemaybe,aStateBoard,prohibit,bynotificationin
the Official Gazette, employment of contract labour in any process, operation or other work in any
establishment.
(2) Before issuing any notification under subsection (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,
operationorotherworkisincidentalto,ornecessaryfortheindustry,trade,business,manufactureor
occupationthatiscarriedonintheestablishment
(b) whether it is of perennial nature, that is to say, it is of sufficient duration having regard to the
natureofindustry,trade,business,manufactureoroccupationcarriedoninthatestablishment
(c)whetheritisdoneordinarilythroughregularworkmeninthatestablishmentoranestablishment
similarthereto
(d)whetheritissufficienttoemployconsiderablenumberofwholetimeworkmen.
Explanation : If a question arises whether any process or operation or other work is of perennial
nature,thedecisionoftheappropriateGovernmentthereonshallbefinal.
STATEAMENDMENTS
AndhraPradesh.Forsection10,substitutethefollowingsection,namely:
10.Prohibitionofemploymentofcontractlabour.(1)Notwithstandinganythingcontainedinthis
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Act,employmentofcontractlabourincoreactivitiesofanyestablishmentifprohibited:
Providedthattheprincipalemployermayengagecontractlabouroracontractortoanycoreactivitiy,
if
(a) the normal functioning of the establishments is such that the activity is ordinarily done through
contractorsor
(b) the activities are such that they do not require full time workers for the major portion of the
workinghoursinadayorforlongerperiods,asthecasemaybe
(c)anysuddenincreaseofvolumeofworkinthecoreactivitywhichneedstobeaccomplishedina
specifiedtime.
(2) Designated authority. (a) The appropriate Government may by notification in the Official
Gazetteappointadesignatedauthoritytoadvisethemonthequestionwhetheranyactivityofagiven
establishmentisacoreactivityorotherwise
(b)ifaquestionarisesastowhetheranyactivityofanestablishmentisacoreactivityorotherwisethe
aggrieved party may make an application in such a form and manner as may be prescribed, to the
appropriateGovernmentfordecision
(c)theappropriateGovernmentmayreferanyquestionbyitselforsuchapplicationmadetothemby
anyaggrievedpartyasprescribedinclause(b),asthecasemaybe,tothedesignatedauthority,which
onthebasisofrelevantmaterialinitspossession,oraftermakingsuchanenquiryasdeemedfitshall
forward the report to the appropriate Government, within a prescribed period and thereafter the
appropriateGovernmentshalldecidethequestionwithintheprescribedperiod.
Maharashtra. In section 10, in subsection (1), after the words Notwithstanding anything
containedinthisAct,insertthewordsbut,subjecttotheprovisionsofclause(c)ofsubsection(5)
ofsection1.
[Vide The Contract Labour (Regulation and Abolition) (Maharashtra Amendment) Act, 2005
(MaharashtraAct13of2006),sec.3(w.e.f.252006).]
COMMENTS
(i) Industrial Court have no jurisdiction to determine the question as to whether the contract labour
shouldbeabolishedornot,thesamebeingwithintheexclusivedomainofappropriateGovernment
SteelAuthorityofIndiaLtd.v.UnionofIndia,AIR2006SC3229.
(ii) On issuance of prohibition under section 10(1) of the Act prohibiting employment of contract
labour or otherwise, in an industrial dispute brought before it by any contract labour in regard to
conduct of service Industrial Adjudicator will have to be interpose on the ground of having
undertakentoproduceanygivenresultfortheestablishmentorforsupplyofcontractlabourforwork
of the establishment under a genuine contract or is a mere ruse/camouflage legislations so as to
deprivetheworkersofthebenefitsthereunderRajeshKumarv.UnionofIndia,2003(2)LLJ102
(Del).
(iii)ItisonlytheappropriateGovernmentwhichhastheauthoritytoabolishcontractlaboursystem
and not the court including the industrial adjudicator Gujarat Electricity Board v. Hind Mazdoor
Sabha,1995LLR552(SC).
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(iv) The primary object of the Act is to stop exploitation of contract labourers by contractor or
establishment.TheActdoesnotpurporttoabolishcontractlabourinitsentiretyR.K.Pandav.Steel
AuthorityofIndia,(1994)69FLR256(SC).
(v) Provisions of section 10(2) of this Act are mandatory. Amendment Act No. 14 of 1988 cannot
haveretrospectiveeffectFCIClassIVEmployeesUnionv.F.C.I.,(1994)IILLJ102(P&H).
(vi)ConsultationwiththeCentralAdvisoryBoardismandatoryTataRefractoriesLtd.v.Unionof
India,(1992)IILLJ810(Ori).
(vii)TheActdoesnotprovideforatotalabolitionofcontractlabourbutitprovidesforabolitionof
contractlabourinappropriatecasesDeenaNathv.NationalFertilizersLtd.,1992LLR46(SC).
(viii)ThepoweroftheappropriateGovernmentundersection10isnotaffectedorcurtailedinany
mannerbysection119oftheFactoriesAct,1948GovernmentofAndhraPradeshv.Bhadarachalam
PaperBoardLtd.,(1990)76FJR58(AP).
(ix) It is the scrutiny of individual establishment which is contemplated by section 10 of the Act.
ThereisnohostilediscriminationNationalOrganicChemicalIndustryLtd.v.StateofMaharashtra,
(1989)IILLN817(Bom).
11.APPOINTMENTOFLICENSINGOFFICERS.
TheappropriateGovernmentmay,byanordernotifiedintheOfficialGazette,
(a) appoint such persons, being Gazetted Officers of Government, as it thinks fit to be licensing
officersforthepurposesofthisChapterand
(b)definethelimits,withinwhicha,licensingofficershallexercisethepowersconferredonlicensing
officersbyorunderthisAct.
12.LICENSINGOFCONTRACTORS.
(1) With effect from such date as the appropriate Government may, by notification in the Official
Gazette,appoint,nocontractortowhomthisActapplies,shallundertakeorexecuteanyworkthrough
contractlabourexceptunderandinaccordancewithalicenceissuedinthatbehalfbythelicensing
officer.
(2)SubjecttotheprovisionsofthisAct,alicenceundersubsection(1)maycontainsuchconditions
including,inparticular,conditionsastohoursofwork,fixationofwagesandotheressentialamenities
in respect of contract labour as the appropriate Government may deem fit to impose in accordance
withtherules,ifany,madeundersection35andshallbeissuedonpaymentofsuchfeesandonthe
deposit of such sum, if any, as security for the due performance of the conditions as may be
prescribed.
COMMENTS
(i)Bothconditionsofobtainingacertificateofregistrationandemployinglabourthroughalicensed
contractorbytheprincipalemployermustbesatisfiedFoodCorporationofIndiaWorkersUnionv.
FoodCorporationofIndia,1990LLR589(Guj).
(ii)Theemployeesengagedbyacontractortorunacanteenforacompanydonotbecomeemployees
ofthecompanyifthecontractorfailstoregisterthecontractwiththeappropriateauthoritiesGeneral
LabourUnion(RedFlag)v.K.M.Desai,1990LLR208(Bom).
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(iii) Licensing is only a regulatory measure and it does not create any privilege Steel Authority of
Indiav.SteelAuthorityofIndiaContractWorkmensUnion,(1990)64FLR573(Karn).
(iv)NospecialqualificationisrequiredforapersonwhoseeksalicenceSteelAuthorityofIndiav.
SteelAuthorityofIndiaContractWorkmensUnion,(1990)64FLR573(Karn).
13.GRANTOFLICENCES.
(1)Everyapplicationforthegrantofalicenceundersubsection(1)ofsection12shallbemadeinthe
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
particularsasmaybeprescribed.
(2) The licensing officer may make such investigation in respect of the application received under
subsection(1)andinmakinganysuchinvestigationthelicensingofficershallfollowsuchprocedure
asmaybeprescribed.
(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
maybeprescribed.
14. REVOCATION, SUSPENSION AND AMENDMENT OF

LICENCES.
(1)Ifthelicensingofficerissatisfied,eitheronareferencemadetohiminthisbehalforotherwise,
that(a)alicencegrantedundersection12hasbeenobtainedbymisrepresentationorsuppressionof
anymaterialfact,or
(b)theholderofalicencehas,withoutreasonablecause,failedtocomplywiththeconditionssubject
towhichthelicencehasbeengrantedorhascontravenedanyoftheprovisionsofthisActortherules
madethereunder,thenwithoutprejudicetoanyotherpenaltytowhichtheholderofthelicencemay
beliableunderthisAct,thelicensingofficermay,aftergivingtheholderofthelicenceanopportunity
of showing cause, revoke or suspend the licence or forfeit the sum, if any, or any portion thereof
depositedassecurityforthedueperformanceoftheconditionssubjecttowhichthelicencehasbeen
granted.
(2)Subjecttoanyrulesthatmaybemadeinthisbehalf,thelicensingofficermayvaryoramenda
licencegrantedundersection12.
15.APPEAL.
(1)Anypersonaggrievedbyanordermadeundersection7,section8,section12orsection14may,
withinthirtydaysfromthedateonwhichtheorderiscommunicatedtohim,preferanappealtoan
appellate officer who shall be a person nominated in this behalf by the appropriate Government :
Providedthattheappellateofficermayentertaintheappealaftertheexpiryofthesaidperiodofthirty
days,ifheissatisfiedthattheappellantwaspreventedbysufficientcausefromfilingtheappealin
time.
(2)Onreceiptofanappealundersubsection(1),theappellateofficershall,aftergivingtheappellant
anopportunityofbeinghearddisposeoftheappealasexpeditiouslyaspossible.
COMMENTS
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Chapter IV (containing rules 33 to 39) of the Contract Labour (Regulation and Abolition) Central
Rules,1971laydowntheprocedurerelatingtoappeals.
16.CANTEENS.
(1)TheappropriateGovernmentmaymakerulesrequiringthatineveryestablishment(a)towhich
thisActapplies,
(b)whereinworkrequiringemploymentofcontractlabourislikelytocontinueforsuchperiodasmay
beprescribed,and
(c)whereincontractlabournumberingonehundredormoreisordinarilyemployedbyacontractor,
oneormorecanteensshallbeprovidedandmaintainedbythecontractorfortheuseofsuchcontract
labour.
(2)Withoutprejudicetothegeneralityoftheforegoingpower,suchrulesmayprovidefor(a)the
datebywhichthecanteensshallbeprovided
(b) the number of canteens that shall be provided, and the standards in respect of construction,
accommodation,furnitureandotherequipmentofthecanteensand
(c)thefoodstuffswhichmaybeservedthereinandthechargeswhichmaybemadetherefore.
17.RESTROOMS.
(1)Ineveryplacewhereincontractlabourisrequiredtohaltatnightinconnectionwiththeworkof
anestablishment(a)towhichthisActapplies,and
(b) in which work requiring employment of contract labour is likely to continue for such period as
maybeprescribed,thereshallbeprovidedandmaintainedbythecontractorfortheuseofthecontract
laboursuchnumberofrestroomsorsuchothersuitablealternativeaccommodationwithinsuchtime
asmaybeprescribed.
(2) The restrooms or the alternative accommodation to be provided under subsection (1) shall be
sufficientlylightedandventilatedandshallbemaintainedinacleanandcomfortablecondition.
18.OTHERFACILITIES.
Itshallbethedutyofeverycontractoremployingcontractlabourinconnectionwiththeworkofan
establishment to which this Act applies, to provide and maintain (a) a sufficient supply of
wholesomedrinkingwaterforthecontractlabouratconvenientplaces
(b)asufficientnumberoflatrinesandurinalsoftheprescribedtypessosituatedastobeconvenient
andaccessibletothecontractlabourintheestablishmentand
(c)washingfacilities.
19.FIRSTAIDFACILITIES.
There shall be provided and maintained by the contractor so as to be readily accessible during all
working hours a firstaid box equipped with the prescribed contents at every place where contract
labourisemployedbyhim.
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20. LIABILITY OF PRINCIPAL EMPLOYER IN CERTAIN

CASES.
(1)Ifanyamenityrequiredtobeprovidedundersection16,section17,section18orsection19for
the benefit of the contract labour employed in an establishment is not provided by the contractor
withinthetimeprescribedtherefor,suchamenityshallbeprovidedbytheprincipalemployerwithin
suchtimeasmaybeprescribed.
(2)Allexpensesincurredbytheprincipalemployerinprovidingtheamenitymayberecoveredbythe
principalemployerfromthecontractoreitherbydeductionfromanyamountpayabletothecontractor
underanycontractorasadebtbythecontractor.
COMMENTS
Obligation to provide amenities conferred by the Act to the workers is on the principal employer
PeoplesUnionforDemocraticRightsv.UnionofIndia,1982(3)SCC235.
21.RESPONSIBILITYFORPAYMENTOFWAGES.
(1) A contractor shall be responsible for payment of wages to each worker employed by him as
contractlabourandsuchwagesshallbepaidbeforetheexpiryofsuchperiodasmaybeprescribed.
(2)Everyprincipalemployershallnominatearepresentativedulyauthorisedbyhimtobepresentat
thetimeofdisbursementofwagesbythecontractoranditshallbethedutyofsuchrepresentativeto
certifytheamountspaidaswagesinsuchmannerasmaybeprescribed.
(3)Itshallbethedutyofthecontractortoensurethedisbursementofwagesinthepresenceofthe
authorisedrepresentativeoftheprincipalemployer.
(4)Incasethecontractorfailstomakepaymentofwageswithintheprescribedperiodormakesshort
payment,thentheprincipalemployershallbeliabletomakepaymentofwagesinfullortheunpaid
balancedue,asthecasemaybe,tothecontractlabouremployedbythecontractorandrecoverthe
amount so paid from the contractor either by deduction from any amount payable to the contractor
underanycontractorasadebtpayablebythecontractor.
COMMENTS
Ifthecontractorfailstopaywagestohisemployeesengagedbyhim,theprincipalemployerwillbe
liabletopaythesameComincoBenaniZincLtd.v.Pappachan,1989LLR123(Ker).
22.OBSTRUCTIONS.
(1)WhoeverobstructsaninspectorinthedischargeofhisdutiesunderthisActorrefusesorwillfully
neglects to afford the inspector any reasonable facility for making any inspection, examination,
inquiryorinvestigation,authorisedbyorunderthisActinrelationtoanestablishmenttowhich,ora
contractor to whom, this Act applies, shall be punishable with imprisonment for a term which may
extendtothreemonths,orwithfinewhichmayextendtofivehundredrupees,orwithboth.
(2) Whoever willfully refuses to produce on the demand of an inspector any register or other
documentkeptinpursuanceofthisActorpreventsorattemptstopreventordoesanythingwhichhe
hasreasontobelieveislikelytopreventanypersonfromappearingbeforeorbeingexaminedbyan
inspectoractinginpursuanceofhisdutiesunderthisAct,shallbepunishablewithimprisonmentfora
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term which may extend to three months, or with fine which may extend to five hundred rupees, or
withboth.
COMMENTS
ThewordwilfullymeansdeliberatelyorintentionallyorknowinglyInre:HarnamSingh,1976(2)
SCC819.
23. CONTRAVENTION OF PROVISIONS REGARDING

EMPLOYMENTOFCONTRACTLABOUR.
Whoever contravenes any provision of this Act or of any rules made there under prohibiting,
restrictingorregulatingtheemploymentofcontractlabour,orcontravenesanyconditionofalicence
grantedunderthisAct,shallbepunishablewithimprisonmentforatermwhichmayextendtothree
months, or with fine which may extend to one thousand rupees, or with both, and in the case of a
continuingcontraventionwithanadditionalfinewhichmayextendtoonehundredrupeesforevery
dayduringwhichsuchcontraventioncontinuesafterconvictionforthefirstsuchcontravention.
COMMENTS
(i) Consequence of noncompliance with the provisions of section 7 or section 12 is penal Deena
Nathv.NationalFertilizersLtd.,1992LLR46(SC).
(ii) Prohibition under section 10(1) cannot include any work with the establishment S.D. Powar v.
LabourEnforcementOfficer,(1992)65FLR907(Ker).
(iii)MensreaisanelementofoffenceS.B.Deshmukhv.StateofMaharashtra,1986LabIC2003
(Bom).
24.OTHEROFFENCES.
IfanypersoncontravenesanyoftheprovisionsofthisActorofanyrulesmadethereunderforwhich
no other penalty is elsewhere provided, he shall bepunishablewithimprisonment for a termwhich
mayextendtothreemonths,orwithfinewhichmayextendtoonethousandrupees,orwithboth.
COMMENTS
(i)Merelybecauseacontractorundertakestorenderanyparticularserviceandengageshisemployees
doesnotipsofactotoengagementcontractlabourBasantaKumarMohantyv.StateofOrissa,(1992)
IILLJ190(Ori).
(ii) This Act does not exclude prosecution against the State or the Government or any of its
instrumentalities National Projects Constructions Corporation Ltd. v. Labour Enforcement Officer,
(1991)62FLR497(Cal).
25.OFFENCESBYCOMPANIES.
(1)IfthepersoncommittinganoffenceunderthisActisacompany,thecompanyaswellasevery
person in charge of, and responsible to, the company for the conduct of its business at the time of
commission of the offence shall be deemed to be guilty of the offence and shall be liable to be
proceededagainstandpunishedaccordingly:Providedthatnothingcontainedinthissubsectionshall
renderanysuchpersonliabletoanypunishmentifheprovesthattheoffencewascommittedwithout
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hisknowledgeorthatheexercisedallduediligencetopreventthecommissionofsuchoffence.
(2)Notwithstandinganythingcontainedinsubsection(1),whereanoffenceunderthisActhasbeen
committed by a company and it is proved that the offence has been committed with the consent or
connivanceof,orthatthecommissionoftheoffenceisattributabletoanyneglectonthepartofany
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
liabletobeproceededagainstandpunishedaccordingly.
Explanation:Forthepurposeofthissection(a)companymeansanybodycorporateandincludes
afirmorotherassociationofindividualsand
(b)director,inrelationtoafirm,meansapartnerinthefirm.
COMMENTS
Consequenceofnoncompliancewiththeprovisionsofsection7orsection12ispenalDeenaNathv.
NationalFertilizersLtd.,1992LLR46(SC).
26.COGNIZANCEOFOFFENCES.
NocourtshalltakecognizanceofanyoffenceunderthisActexceptonacomplaintmadeby,orwith
the previous sanction in writing of, the inspector and no court inferior to that of a Presidency
MagistrateoraMagistrateofthefirstclassshalltryanyoffencepunishableunderthisAct.
27.LIMITATIONOFPROSECUTIONS.
NocourtshalltakecognizanceofanoffencepunishableunderthisActunlessthecomplaintthereofis
madewithinthreemonthsfromthedateonwhichtheallegedcommissionoftheoffencecametothe
knowledgeofaninspector:
Provided that where the offence consists of disobeying a written order made by an inspector,
complaint,thereofmaybemadewithinsixmonthsofthedateonwhichtheoffenceisallegedtohave
beencommitted.
28.INSPECTINGSTAFF.
(1)TheappropriateGovernmentmay,bynotificationintheOfficialGazette,appointsuchpersonsas
itthinksfittobeinspectorsforthepurposesofthisAct,anddefinethelocallimitswithinwhichthey
shallexercisetheirpowersunderthisAct.
(2)Subjecttoanyrulesmadeinthisbehalf,aninspectormay,withinthelocallimitsforwhichheis
appointed (a) enter, at all reasonable hours, with such assistance (if any), being persons in the
serviceoftheGovernmentoranylocalorotherpublicauthorityashethinksfit,anypremisesorplace
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 there under, and require the
productionthereofforinspection
(b) examine any person whom he finds in any such premises or place and who, he has reasonable
causetobelieve,isaworkman,employedtherein
(c) require any person giving out work and any workman, to give any information, which is in his
powertogivewithrespecttothenamesandaddressesofthepersonsto,forandfromwhomthework
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isgivenoutorreceived,andwithrespecttothepaymentstobemadeforthework
(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
committedbytheprincipalemployerorcontractorand
(e)exercisesuchotherpowersasmaybeprescribed.
(3)Anyinformationrequiredtoproduceanydocumentorthingortogiveanyinformationrequiredby
aninspectorundersubsection(2)shallbedeemedtobelegallyboundtodosowithinthemeaningof
section175andsection176oftheIndianPenalCode(45of1860).
(4)TheprovisionsoftheCodeofCriminalProcedure,1898(5of1898),shall,sofarasmaybe,apply
toanysearchorseizureundersubsection(2)astheyapplytoanysearchorseizuremadeunderthe
authorityofawarrantissuedundersection98ofthesaidCode.
COMMENTS
Seniorofficersmustensurecompliancewiththeprovisionsofsection21SalalHydroElectricProject
v.StateofJammu&Kashmir,1984(3)SCC538.
29. REGISTERS AND OTHER RECORDS TO BE

MAINTAINED.
(1) Every principal employer and every contractor shall maintain such registers and records giving
particularsofcontractlabouremployed,thenatureofworkperformedbythecontractlabour,therates
ofwagespaidtothecontractlabourandsuchotherparticularsinsuchformasmaybeprescribed.
(2) Every principal employer and every contractor shall keep exhibited in such manner as may be
prescribedwithinthepremisesoftheestablishmentwherethecontractlabourisemployed,noticesin
the prescribed form containing particulars about the hours of work, nature of duty and such other
informationasmaybeprescribed.
COMMENTS
(i) Forms cannot abridge the Act or the Rules made or directions given thereunder Life Insurance
CorporationofIndiav.EscortsLtd.,1986(1)SCC264.
(ii) An employer may enjoy benefits of section 6 of the Labour Laws (Exemption from Furnishing
Returns and Maintaining Registers by certain Establishments) Act, 1988 (51 of 1988) which came
intoforceon151989.
30. EFFECT OF LAWS AND

INCONSISTENTWITHTHISACT.
AGREEMENTS
(1) The provisions of this Act shall have effect notwithstanding anything inconsistent therewith
containedinanyotherlaworinthetermsofanyagreementorcontractofservice,orinanystanding
ordersapplicabletotheestablishmentwhethermadebeforeorafterthecommencementoftheAct:
Provided that where under any such agreement, contract of service or standing orders the contract
labouremployedintheestablishmentareentitledtobenefitsinrespectofanymatterwhicharemore
favourabletothemthanthosetowhichtheywouldbeentitledunderthisAct,thecontractlabourshall
continuetobeentitledtothemorefavourablebenefitsinrespectofthatmatter,notwithstandingthat
16/22
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theyreceivedbenefitsinrespectofothermattersunderthisAct.
(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
thosetowhichtheywouldbeentitledunderthisAct.
COMMENTS
(i) This Act does not override the provisions of the Industrial Disputes Act, 1947 FCI Loading &
UnloadingWorkersUnionv.FoodCorporationofIndia,57FLR1(Summary).
(ii)TheprovisionsofthisActshallhaveoverridingeffectoveranyotherlaw,agreement,contractof
serviceorstandingorderswhichisinconsistentwithanyofitsprovisionsT.ChandraMohanNairv.
Fertilizers&ChemicalsTravancoreLtd.,1994LLR626(Ker).
31.POWERTOEXEMPTINSPECIALCASES.
TheappropriateGovernmentmay,inthecaseofanemergency,direct,bynotificationintheOfficial
Gazette,thatsubjecttosuchconditionsandrestrictions,ifany,andforsuchperiodorperiods,asmay
bespecifiedinthenotification,alloranyoftheprovisionsofthisActortherulesmadethereunder
shallnotapplytoanyestablishmentorclassofestablishmentsoranyclassofcontractors.
stateamendment
AndhraPradesh.Forsection31,substitutethefollowingsection,namely:
31.Thepowertoexemptinspecialcases.(1)TheappropriateGovernmentmay,inpublicinterest,
direct,bynotificationintheOfficialGazette,thatsubjecttosuchconditionsandrestrictions,ifany,
andforsuchperiodorperiods,asmaybespecifiedinthenotification,alloranyoftheprovisionsof
thisActortheRulesmadethereundershallnotapplytoanyestablishmentorclassofestablishmentor
anyclassofcontractors,asthecasemaybe.
(2)WheretheoperationofanyoftheprovisionsofthisAct,undersection31(1)hasbeenexcluded,
suchexclusionmayatanytimeberevokedbytheappropriateGovernmentbysubsequentnotification
intheOfficialGazette.
32.PROTECTIONOFACTIONTAKENUNDERTHISACT.
(1)Nosuit,prosecutionorotherlegalproceedingsshall,lieagainstanyregisteringofficer,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
pursuanceofthisActoranyruleorordermadethereunder.
(2)NosuitorotherlegalproceedingshalllieagainsttheGovernmentforanydamagecausedorlikely
tobecausedbyanythingwhichisingoodfaithdoneorintendedtobedoneinpursuanceofthisAct
oranyruleorordermadethereunder.
33.POWERTOGIVEDIRECTIONS.
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TheCentralGovernmentmaygivedirectionstotheGovernmentofanyStateastothecarryinginto
executionintheStateoftheprovisionscontainedinthisAct.
34.POWERTOREMOVEDIFFICULTIES.
IfanydifficultyarisesingivingeffecttotheprovisionsofthisAct,theCentralGovernmentmay,by
orderpublishedintheOfficialGazette,makesuchprovisionsnotinconsistentwiththeprovisionsof
thisAct,asappearstoittobenecessaryorexpedientforremovingthedifficulty.
35.POWERTOMAKERULES.
(1)TheappropriateGovernmentmay,subjecttotheconditionofpreviouspublication,makerulesfor
carryingoutthepurposesofthisAct.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provideforalloranyofthefollowingmatters,namely:
(a) the number of persons to be appointed members representing various interests on the Central
BoardandtheStateBoard,thetermoftheirofficeandotherconditionsofservice,theproceduretobe
followedinthedischargeoftheirfunctionsandthemanneroffillingvacancies
(b)thetimesandplacesofthemeetingsofanycommitteeconstitutedunderthisAct,theprocedureto
befollowedassuchmeetingsincludingthequorumnecessaryforthetransactionofbusiness,andthe
feesandallowancesthatmaybepaidtothemembersofacommittee
(c)themannerinwhichestablishmentsmayberegisteredundersection7,thelevyofafeetherefore
andtheformofcertificateofregistration
(d)theformofapplicationforthegrantorrenewalofalicenceundersection13andtheparticularsit
maycontain
(e)themannerinwhichaninvestigationistobemadeinrespectofanapplicationforthegrantofa
licenceandthematterstobetakenintoaccountingrantingorrefusingalicence
(f)theformofalicencewhichmaybegrantedorrenewedundersection12andtheconditionssubject
towhichthelicencemaybegrantedorrenewed,thefeestobeleviedforthegrantorrenewalofa
licenceandthedepositofanysumassecurityfortheperformanceofsuchconditions
(g)thecircumstancesunderwhichlicencesmaybevariedoramendedundersection14
(h) the form and manner in which appeals may be filed under section 15 and the procedure to be
followedbyappellateofficersindisposingoftheappeals
(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, restrooms, latrines and urinals that should be provided and
maintained
(k)thetypeofequipmentthatshouldbeprovidedinthefirstaidboxes
(l)theperiodwithinwhichwagespayabletocontractlabourshouldbepaidbythecontractorunder
subsection(1)ofsection21
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(m)theformofregistersandrecordstobemaintainedbyprincipalemployersandcontractors
(n) the submission of returns, forms in which, and the authorities to which, such returns may be
submitted
(o)thecollectionofanyinformationorstatisticsinrelationtocontractlabourand
(p)anyothermatterwhichhastobe,ormaybe,prescribedunderthisAct.
(3)EveryrulemadebytheCentralGovernmentunderthisActshallbelaidassoonasmaybeafterit
ismade,beforeeachHouseofParliamentwhileitisinsessionforatotalperiodofthirtydayswhich
maybecomprisedinonesessionorintwosuccessivesessions,andifbeforetheexpiryofthesession
in which it is so laid or the session immediately following, both Houses agree in making any
modificationintheruleorbothHousesagreethattheruleshouldnotbemade,theruleshallthereafter
haveeffectonlyinsuchmodifiedformorbeofnoeffect,asthecasemaybeso,however,thatany
suchmodificationorannulmentshallbewithoutprejudicetothevalidityofanythingpreviouslydone
underthatrule.
1[(4)EveryrulemadebytheStateGovernmentunderthisActshallbelaid,assoonasmaybeafterit
ismade,beforetheStateLegislature.]
stateamendment
AndhraPradesh.Insection35,insubsection(2),omitclauses(a)and(b).
COMMENT
(i)LevyofanyfeeisnotlevyoftaxGammonIndiaLtd.v.UnionofIndia,1974(1)SCC596.
(ii)StatutoryrulesmadeunderastatutemustbetreatedexactlyasiftheywereintheActandtobe
judicially noticed for all purposes of construction or obligation N.K. Hazarika v. Union of India,
(1995)2SLJ(CAT)410.
1.AddedbyAct4of2005,sec.2andSch.(w.e.f.1112005).
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Contract Labour Act, 1970

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1. SHORT TITLE, EXTENT, COMMENCEMENT AND

8. REVOCATION OF REGISTRATION IN CERTAIN

10. PROHIBITION OF EMPLOYMENT OF CONTRACT

14. REVOCATION, SUSPENSION AND AMENDMENT OF

20. LIABILITY OF PRINCIPAL EMPLOYER IN CERTAIN

23. CONTRAVENTION OF PROVISIONS REGARDING

29. REGISTERS AND OTHER RECORDS TO BE

30. EFFECT OF LAWS AND

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