1-Registration of Establishments: According to the Act, any business that employed 20 or more contract laborers on any given day within the previous 12 months must register.
2-Obtaining License: Businesses that use contract workers must get a license from the relevant government agency. However, if the contract labor is used for irregular or informal work, several states may not require a license.
3-Maintaining Registers and Records: Employers are obligated to maintain various registers and records prescribed under the Act, including a register of contractors, muster roll, wages register, deduction register, etc.
4-Working Hours and Conditions: Employers are required by law to abide by the Act’s limit working hours, rest periods, overtime pay, and other terms of service for contract laborers.
5-Payment of Wages: Employers are required to pay wages to contract laborers on time and in accordance with the provisions of the Act. Deductions can only be made as per the permissible deductions under the law.
6-Health and Safety Measures: It is the duty of employers to protect contract workers’ health, safety, and welfare at work. It is necessary to provide enough measures including first aid supplies, clean drinking water, and sanitary facilities.
7-Prohibition of Employment of Certain Categories of Contract Labor: The Act prohibits the employment of contract labor in certain types of work, such as perennial nature of work.
8-Annual Returns: Companies must provide yearly reports to the relevant authorities that include information on the contract workers they used the year before.
9-Other Statutory Compliance: Employers must also abide by other relevant labor regulations in addition to the Contract Labour Act, such as the Employees’ Provident Fund and Miscellaneous Provisions Act, the Employees’ State Insurance Act, and the Payment of Gratuity Act.
Penalties, such as fines and jail time, may result from breaking the terms of the Contract Labour Act. Employers must make sure they are in compliance with all applicable labor regulations in order to avoid facing legal ramifications. To properly negotiate the complexities of labor laws, it’s also a good idea to consult with specialists or obtain legal representation.
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