Saturday, June 13, 2009

What should a Factory owner or contractor know about the Haryana/Panjab contract labour act 1970 .

Registration of Establishment employing Contract Labour.
The Principal Employer (owner, occupier, ultimate controller or Manager) shall submit an application in FORM-I(CL) in triplicate for Registration of Establishment to the Registering Officer, (Contract Labour) IR-II Branch, Labour Department, 30 bays Building, Sector-17, Chandigarh within 15 days after coming into existence of establishment.(Section-6)
An application shall be accompanied by treasury receipt in token of the payment of prescribed fee for registration of the establishment.(Section-7)
The fee structure for the number of workmen proposed to be employed on any one day on contract by the Principal Employer is as under:-
Fee for Registration of Establishment
a)is 20 or less-Rs.20
b)
Exceeds 20 but less than 50
-Rs.50
c)
Exceeds 50 but less than 100
-Rs.100/-
d)
Exceeds 100 but less than 200
-Rs. 200/-
e)
Exceeds 200 but less than 400
-Rs. 400/-
f)
Exceeds 400 but less than 500
-Rs. 500/-

The fee shall be deposited in Treasury Head No-0230- Labour & Employment-106- Registration and Renewal fee under contract Labour (Regulations and Abolition) Act, 1970.
The Registering officer, if satisfied, shall register the establishment and issue a certificate of Registration in Form-2 (CL) containing name & address of the establishment the maximum number of workmen employed as contract labour, type of business or trade etc.(Section-8)
Licence Fee For Contractor
Every contractor is required to submit an application in triplicate in Form-4(CL) to the Licensing Officer.(Section-12)
Every application for licence shall be accompanied by a certificate of the Principal Employer in Form-5(CL) to the effect that the applicant has been employed by him as a contractor in relation to his establishment and that he undertakes to be bound by all the provisions of the Act and the rules made thereunder.(Section-12)
An application shall also be accompanied by treasury receipt in token of the payment of prescribed fee as well as the security amount of Rs.30 per worker for grant of license to the contractor.(Section-12)
The fee structure for the Number of workmen proposed to be employed on any one day on contract by the contractor is as under:-

Sr. No
No. of Workers
Licence Fee
Security Amount
1.
is 20 or less
Rs.20
The amount of security shall be calculated at the rate of Rs.30/- for each of the workmen to be employed as contract labour. If the contractor is a Co-op society,the amount deposited as security shall be @ of Rs.5/- for each of the workmen.
2.
Exceeds 20 but less than 50/-
Rs. 50

3.
Exceeds 50 but less than 100
Rs. 100

4.
Exceeds 100 but less than 200
Rs. 200

5.
Exceeds 200 but less than 400
Rs. 400

6.
Exceeds 400 but less than 500
Rs. 500


The license fee and renewal fee shall be deposited in treasury under head "0230-Labour & Employment-106- Registration and Renewal fee under Contract Labour(Regulation and Abolition) Act-1970.(Section-13)
The Security amount shall be deposited in treasury under head No.8443-Civil Deposits-104- Deposits under various Central & State Acts-deposit under the Contract Labour (Regulation & Abolition) Act 1970.(Rule-24)
Every licence granted or renewed shall remain in force upto the 31st December of the year for which the licence is granted or renewed.(Rule-27)
The Contractor/Applicant should not be minor or of unsound mind or an undischarged insolvent moral turpitude.(Rule-22)
The Licensing Officer , if satisfied about the eligibility of the applicant, grant a licence in Form-6 otherwise he shall after affording a reasonable opportunity to the applicant to be heard make an order rejecting the application and communicate the same to the applicant.(Section-13,Rule-23)
The licence shall be non-transferable.(Rule-25)
The number of workmen should not exceed the maximum number specified in the licence.(Rule-25)
The fee once paid shall not be refundable. (Rule-25)
The rates of wages payable to the workmen by the contractor shall not be less than rates of minimum wages as notified by the Govt. from time to time.
In case where the workmen employed by the contractor perform the same or similar kind of work as the workmen directly employed by the Principal employer of the establishment , the wages, holidays, hours of work and other conditions of service shall be the same as applicable to the workmen directly employed by the Principal employer. (Rule-25)
In this regard, if any conflict arises, the decision of the Labour Commissioner , Haryana shall be final. (Rule-25)


Renewal of Licence
Every contractor shall make an application to the Licensing Officer for renewal of licence in Form-7(CL) in triplicate alongwith prescribed fee stated above 30 days before it's date of expiry. (Section 13, Rule 29)
FEE FOR RENEWAL OF LICENCE FOR CONTRACTOR
Sr. No
No. of Workers
Renewal Fee
1.
is 20 or less
Rs.5
2.
Exceeds 20 but less than 50/-
Rs. 12.50
3.
Exceeds 50 but less than 100
Rs. 25
4.
Exceeds 100 but less than 200
Rs. 50
5.
Exceeds 200 but less than 400
Rs. 100
6.
Exceeds 400 but less than 500
Rs. 125

Application for renewal is not received within prescribed time penalty amounting to twenty five percent of the fee ordinarily payable for the licence shall also be payable for renewal.(Rule-26)
Every licence granted or renewed shall remained enforce upto the 31st December of every year for which the licensing is granted or renewed.(Rule-27)
The Certificate of registration or a license granted or renewed has been lost, defaced or accidentally destroyed a duplicate may be granted on payment of fee of Rupees Five-only.(Rule-30)
Appeal
The applicant may appeal to the Appellate Officer after refusal of registration , renewal or grant of license in the form of a memorandum signed by the applicant or his authorized agent , clearly mentioned the ground of appeal accompanied by a certified copy of the order as authority and a treasury receipt of ten rupees or postal order.(Sec.-15)
Copies of the order of the Registering Officer, Licensing Officer or the Appellate Officer may be obtained on payment of a fee of Rs.2/- for each order.(Rule-39)
AMENDMENT OF CERTIFICATE OF REGISTRATION OR LICENCE
If there is any change or amendment in the particulars specified in the certificate of Registration, the Principal Employer of the establishment shall intimate to the Registering Officer and submit application and prescribed fee within 30 days from the date when such change takes place, the particulars of and the reasons for such change and stating the nature of amendment and reasons thereof.(Sec.-14 Rule-28)
The Principal Employer shall maintain a register of contract in Form-8(CL).(Rule-73)
The Principal Employer shall exhibit on notice board the abstract in English and in Hindi and in the local language understood by the majority of workers showing the rates of wages, hours of work, wage period, dates of payment of wages, names & address of the Inspector of his jurisdiction at a conspicuous place. (Rule 78)
A copy of the abstract should be send to the area Inspector. (Rule 80)
The Principal Employer shall be liable to provide welfare and other amenities for contract Labour, if the contractor fails to provide the same and recover the expenses involved from the contractor. (Section 20 & 21)
The Principal Employer has to send an annual return in Form-21(CL) in duplicate so as to reach the authorities by 15th February following the close of the year. (Rule 81(2))
Obligations of a Contractor
No female contract Labour shall be employed by any contractor before 6 A.M. or after 7 P.M. (Rule 25)
The contractor is required to provide suitable canteen consisting dinning hall, kitchen, store room and pantry etc., sufficiently lighted and ventilated rest rooms, creche, latrines ,urinals, whole some drinking water, washing facility and first aid boxes for the use of contract Labour. (Rule 40,41,42 Section 16 to 19)
Every contractor to maintain in respect of each registered establishment where he employs Contract Labour a register in Form 9(CL). (Rule 74)
Every contractor to issue an employment card in Form 10 (CL)to each worker and to issue a service certificate on termination of employment in Form 11(CL). (Rule 75 & 76)
Every contractor in respect of each work has to maintain a register like muster roll, register of wages, deduction, overtime, fines, advances and wages slip. (Rule 77)
Every contractor is under obligation to send half yearly return in Form 20(CL) in duplicate so as to reach the Licensing Officer not later than 30 days from the close of the half year i. e period ending June & December. (Rule 81(1))
A copy of the Licence should be displayed prominently at the premises where the contract work is being carried on . (Rule 18)

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