12 Jobs For Contract Workers In Draft Bill

Companies may hire contract labour for sudden time-bound extra work

The revised draft of the Contract Labour Bill specifies that contract labour can be allowed in 12 activities, including export-oriented units, house-keeping, laundry, security, courier, canteen and transport.

The draft Bill originally discussed by the group of ministers on labour did not identify jobs where contract labour will be allowed. It merely banned contract work in core activities, which were left undefined.

In the revised draft, discussed by the ministerial group last week, the activities in which contract workers can be used include maintenance, service and repair of equipment, machines and plants; construction and maintenance of buildings, roads and bridges; gardening; loading and unloading of raw material and finished goods; running of hospitals, education and training institutions, guest houses and clubs; and sweeping, cleaning, dusting and collection and disposal of waste.

Sources in the government said the labour ministry had also proposed that companies could hire contract workers for any sudden time-bound incremental work.

While the revised draft has done away with the need for contractors to obtain licences before undertaking work using contract labour, it has made the registration of contractors compulsory.

The principal employer, however, need not register, as is required in the Contract Labour (Regulation and Abolition) Act, 1970. The definition of contract labour has been modified to de-link the worker from the principal employer.

The revised draft also proposes 45 days retrenchment compensation to be paid by the contractor. It makes it mandatory for the contractor to take accident and health insurance for workers.

It lays the onus on contractors to keep records of particulars like hours of work, nature of duty and rate of wages. The principal employer will need to keep a record of the contractors engaged.

The revised draft, however, has cast the responsibility on the principal employer to ensure that the contractor pays wages and remits statutory contributions. If the contractor fails to do so, the employer will be liable to make these payments and recover them from the contractor subsequently.

The new labour draft

It is the responsibility of the principal employer to ensure that the contractor pays wages to contract workers

Provision for 45 days