The Contract Labour (Regulation and Abolition) Act, 1970 governs the employment of contract labour in India. The new labour codes, particularly the Occupational Safety Code and Industrial Relations Code, also impact contract workers.
Key Provisions:
- License Requirement: Businesses hiring 20 or more contract workers must obtain a license from the labour department.
- Wage Parity: Contract workers must receive the same wages as permanent workers for similar work.
- Prohibition of Core Activities: Contract labour cannot be employed in core activities of the business unless the work is temporary or incidental.
Impact on Businesses:
- Compliance Complexity: Firms that heavily rely on contract labour need to ensure compliance with wage, safety, and working condition regulations.
- Increased Costs: Businesses are required to pay similar wages and social security benefits to contract labourers, which may increase labour costs.
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It is important to note that labour laws can be complex and subject to change. Please consult with lawyer to ensure that you are complying with all applicable laws and regulations.