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Contract Labour Compliances (CLRA Act, 1970)

The Contract Labour (Regulation & Abolition) Act, 1970 regulates the employment of contract workers in establishments and ensures they get proper wages, welfare, and working conditions.

It applies to:

  • Principal Employer: Any establishment/contractor employing 20 or more contract workers.

  • Contractor: A person/agency who employs contract workers to provide services to an establishment.

 Key Compliances under CLRA

1. Registration & Licensing

  • Principal Employer: Must obtain Registration Certificate (Form I & II) from Labour Department.

  • Contractor: Must obtain Contract Labour License (Form IV & V) if employing 20+ contract workers.

  • Renew licenses on time.

2. Wages & Payments

  • Contract workers must be paid minimum wages (state-specific) or as per agreement, whichever is higher.

  • Wages to be paid before 7th of every month.

  • Payment must be made in presence of establishment representative (principal employer).

  • Maintain wage register & issue wage slips.

3. Welfare & Facilities

  • Canteen facility (if 100+ workers).

  • Restrooms, drinking water, toilets, washing facilities.

  • First aid boxes at workplace.

  • Crèche facility if female contract workers employed (30+ women).

4. Registers & Records to Maintain

  • Muster Roll (Form XVI)

  • Register of Wages (Form XVII)

  • Register of Deductions (Form XX)

  • Register of Overtime (Form XXIII)

  • Register of Contractors (by principal employer)

  • Employment Card for each worker

5. Notices & Display Requirements

  • Abstract of CLRA Act displayed in Hindi/English/local language.

  • Wage rates, hours of work, holidays displayed.

  • Contractor’s license & registration certificate displayed at site.

6. Returns & Filings

  • Contractor: Half-yearly return (Form XXIV) to Licensing Officer.

  • Principal Employer: Annual return (Form XXV) to Registering Officer.

  • Submission deadlines:

    • Half-yearly return: By 30th July & 30th January

    • Annual return: By 15th February

 Penalties for Non-Compliance

  • Fine up to ₹1,000 for principal employer.

  • Cancellation of license/registration.

  • Liability on principal employer for unpaid wages or welfare benefits.

 Responsibility Division

  • Contractor: Responsible for payment of wages, welfare, facilities.

  • Principal Employer: Ultimately liable if contractor defaults (PF, ESIC, wages, etc.).