Policymakers and analysts have looked upon industrial growth in post-liberalisation India favourably. However, the growth of factories, contract workers and directly employed workers in the recent past is often debated. It seeks to understand wages levels and a sense of exploitation among contract workers.
The Annual Survey of Industries (ASI) showed a marked increase in the rise of factories and workers employed within by 85% margin from 2001-2018.
The Industrial Relations Code (IRC) 2020 passed by the government is to safeguard the rights and regulate the employment of contract workers in India. The Form XVIII Register Of Wages Cum Muster Roll also comes under the purview of this legislation.
To know more about the Form XVIII Register Of Wages Cum Muster Roll, let's unravel insights about where it originates and how it affects the employment of contractual workers.
Here is an overview of the key points covered:
1) What is Contract Labour?
2) What is the Contract Labour (Regulation & Abolition) Act, 1970?
3) What are the objectives of the Contract Labour (Regulation & Abolition) Act, 1970?
4) What are the provisions under the Contract Labour (Regulation & Abolition) Act, 1970?
5) What is the Form XVIII Register of Wages?
What is Contract Labour?
Contract labour means a person employed for a fixed period on terms which he works on a piece-rate basis or at times rate basis with payment made on a time rate basis subject to deductions from wages for lapses, breakage, damage and waste. Still, it does not include an employee employed for any work that is seasonal or incidental to the routine work of the establishment. Such a person is employed directly by the employer concerned under whose control and supervision he works.
Asserting that the existing statutory provisions relating to contract labour were inadequate and ineffective, the Act prohibits employment of contract labour in any establishment covered by this Act in any work which is permanent and has been traditionally carried out by employees.
It also provides for the abolition of the contract labour system in such establishment and fixation of wages by the appropriate government after consulting with the representatives of workers and employers.
What is the Contract Labour (Regulation & Abolition) Act, 1970?
The Contract Labour (Regulation & Abolition) Act, 1970 was legislation passed by the Parliament of India in 1970 to regulate the employment of contract labour in any establishment. As per the Act, it was unlawful for any employer to engage in contract labour for a period exceeding one year.
The Act provides for a comprehensive code regulating the employment of contract labour. It prohibits the employment of persons on fixed-term contracts for specific specified purposes. It also prohibits the employment of persons on daily wages in establishments where fixed-term contracts are in operation except in cases specified in the rules made thereunder.
It is an essential document for every contractor who has contract workers working for them. This form helps maintain a record of wages paid to the contract workers. Certain conditions should be fulfilled before transferring this form to the relevant authority.
The Act further prohibits employment under sub-contracts except in cases specified in the rules made thereunder. The Act also contains provisions for the fixation of minimum wages and for eviction from the premises used for carrying out any work or service by a contractor or sub-contractor at the termination of contract or subcontract.
It also provides that if any dispute arises concerning any matter about or connected with such work or service, it shall be referred to a Board constituted under it which shall adjudicate upon such dispute, and its decision shall be final.
The Act also fixed daily minimum wages for workers in the organised sector and laid down conditions of service for them. The Act provided penalties for violation of its provisions and enabled the government to fix minimum wages under its authority. The Act also required employers to register with the appropriate government authorities and ensure that their contract labour is registered with them.
What are the objectives of the Contract Labour (Regulation & Abolition) Act, 1970?
The Contract Labour (Regulation & Abolition) Act, 1970, was enacted to regulate the recruitment and employment of contract labour, eliminate the evils of the contract labour system, and provide for matters connected in addition to that or incidental to that. This Act applies to all establishments or undertakings, whether public or private, whether funded by the Central Government of State Government or any local authority.
The main objectives of this Act are:
- To prohibit the future engagement of contract labour in any establishment or undertaking
- To prohibit the future engagement of contract labour in any industrial undertaking unless prior permission is first obtained on that behalf from the appropriate government
- To regulate the engagement of contract labour in any other industrial undertaking necessary to safeguard the interest of workers engaged therein and ensure that no worker employed therein suffers any prejudice as a result thereof
- To prohibit workers from working under a contractor at an establishment belonging to the same employer or group of employers as those employers with whom he is registered at a particular time
- To require employers who engage contract labour to pay them at wage rates not less than those applicable under a collective agreement, award or any other instrument for the time being in force
What are the Contract Labour (Regulation & Abolition) Act, 1970?
The Contract Labour (Regulation & Abolition) Act, 1970 (popularly known as CLRA) is the principal legislation governing the employment of contract labour in India. Under the CLRA, a contractor is not permitted to employ contract labour directly.
By this law, any person who employs contract labour has to pay them wages as per the Minimum Wages Act, 1948. Under this Act, every contractor operating contract labour is required to furnish returns regarding employment of contract labour and payment of wages to such employees to the concerned authority under whose jurisdiction the work is carried out or to any officer authorised by it on this behalf.
The Act contains provisions for prohibiting the employment of children below 14 years in industrial establishments. It also provides minimum safety and health standards for workers employed by contractors.
The significant provisions of this Act are:
1) Regulation of employment of contract labour
2) Fixing maximum hours of work and providing for work conditions and wages
3) Restriction on the employment of women and children in certain establishments and processes
4) Prohibition of employment as contract labour in certain establishments where regular work is available
5) Abolition of the contract system and substituting a direct employment relationship with regular workers
What is the Form XVIII Register of Wages?
The working conditions under which contract labour is hired, the terms and conditions of employment, leave, wages etc., are no different in practice from those applicable to the regular workers, and workers employed regularly are often worse off than contract labour about wages, security of a job, social security benefits including provident fund benefits, etc. The statistics from different sources clearly indicate that contract labour is at least as exploited as permanent labour.
The form xviii of Register of Wages is covered by The Contract Labour (Regulation & Abolition) Act, 1970.
It covers details of the contractor, establishment and employer. The wages provided to the workers varies on a weekly and fortnightly basis.
All of the fields in the muster roll indicate the fulfilment of employment conditions and nature of attendance required and deemed necessary for the payment of wages.
FORM XVIII
1ISee rule 78 (1) (a) (I)]
Form of Register of Wages-cum-Muster Roll
|
Sl No. |
SL.No.in register of workmen |
Name of employee |
Designation/nature of work |
Daily attendance /units worked
1,2…15 |
Total attendance/ units of work done |
Daily rate of wages/piece-rate |
|
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
|
|
|
|||||||
Name and address of the contractor
Nature and location of work
Name and address of establishment in/under which contract is carried on
Name and address of principal employer
Wage period: Weekly/Fortnightly
From to
|
Amount of wages earned |
Total |
Deductions, if any (indicate nature) |
Net Amount Paid |
Signature/ Thumb impression of workman |
Initial of Contractor or representative |
|||
|
Basic wages
|
Dearness allowance |
Overtime |
Other cash payments(nature of payment to be indicated) |
|||||
|
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
16 |
|
|
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Wrapping Up
The Contract Labour (Regulation & Abolition) Act, 1970 is legislation by the Parliament of India which regulates the employment of contract labour in India. It was enacted in 1970 to regulate contract labour employment and abolish the contractor's system. It aims to provide a better life for workers in general and bring down the unemployment rate.
Key Takeaways
- The Contract Labour (Regulation & Abolition) Act, 1970 (CLRA) is an Act of Parliament of India which regulates the employment of contract labour in India
- The Act was passed to abolish the contract labour system prevalent in India and provide for better regulation of employment of workers on a contract basis
- Under the terms of this Act, hiring labourers on a daily wage or a periodical basis without any intention to continue employing them for an extended period is illegal
- The main objective behind the legislation is to make contract labour as per the terms and conditions of service as an employee. However, it fails to achieve this objective. The apparent reason behind this failure is that the 'master-servant' relationship between employer and employee is not abolished but strengthened with this Act
- The term "contract labour" has been defined as "labour hired for a specific time for a specific work or duty under a contract of service and includes persons employed on daily wages where such daily wages are paid regarding any work done by them during such day"
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