Object of the 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.



• Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour.

• Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen.


Registration of Establishment

Every Principal employer employing 20 or more workers through the contractor has to register with the Authority by paying prescribed fees.


Licensing of Contractor

• Every Contractor engaging 20 or more workers should obtain License from the Authority by required fees and keeping specified Security Deposit.

• The License is issued for specified period.


Prohibition of Employment of Contract Labour

Only by the appropriate Government through issue of notification after consultation with the Board (and not Courts) can order the prohibition of employment of contract labour.


Welfare measures to be taken by the Contractor

• Canteen facility (if workers are 100 or more)

• First Aid facilities.

• Rest Rooms

• Drinking water, latrines and washing facilities.


Liability of Principal Employer

• To ensure provision for canteen, restrooms, sufficient supply of drinking water, latrines and urinals, washing facilities.

• Principal employer entitled to recover from the contractor for providing such amenities or to make deductions from amount payable.


Registers of Contractors

By Principal employer

• To maintain a register of contractor in respect of every establishment in prescribed form.

By Contractor

• Maintain Muster Roll and a Register of Wages in Form XVI and Form XVII respectively when combined.

• Register or wage-cum-Muster Roll in prescribed Form

• Register of Deductions for damage or loss.

• Register or Fines

• Register of Advances

• Register of Overtime

• To issue wage slips to the workmen at least a day prior to the disbursement of wages.

• Obtain the signature or thumb impression of the worker concerned against the entries relating to him on the Register of wages or Muster Roll-Cum-Wages Register.

• When covered by Payment of Wages Act, register and records to be maintained under the rules

• To display an abstract of the act and Rules in English and Hindi and in the language spoken by the Majority of workers in such forms as may be approved by appropriate authority.

• To display notices showing rates of wages, hours of work, wage period, dates of payment, names and addresses of the inspector and to send copy to the inspector and any change forthwith

• To issue an employment card to each worker in prescribed form.

• To issue service certificate to every workman on his termination in prescribed form.


Penal Provision

• For contraventions of Provisions of the Act, imprisonment upto 3 months or fine upto Rs.1,000/-.

• For continuous contraventions of the Act, fine of Rs.100/- per da