The Contract Labour (Regulation and Abolition) Act, 1970

This Act aims to regulate the employment of contract labourers in certain establishments, and to abolish such employment in certain circumstances. It extends to the whole of India.The Act applies to all establishments in which 20 or more ‘workmen’ are employed, or were employed, on any day of the preceding 12 months as contract labourers, and every contractor who is employing or has employed 20 or more ‘workmen’ on any day of the preceding 12 months. It does not apply to establishments where work is intermittent, or of a ‘casual nature’.A ‘workman’ – states the Act – shall be deemed to be employed as ‘contract labour’ when hired at an establishment through a contractor, with or without the knowledge of the 'principal employer’. A ‘contractor’ is defined as a person who undertakes to produce a certain result for an establishment through contract labour, and who supplies contract labourers for any work at the establishment.