Contract Labour (Regulation and Abolition) (Maharashtra Amendment) Act: Changes & Impact

divyaThe Law and Judiciary Department, Government of Maharashtra vide its notification published in the Maharashtra Government Gazette on 5 January 2017 has made significant amendments in Contract Labour (Regulation and Abolition) Act for the state of  Maharashtra.

Now the said act will be applicable:

  • To every establishment in which 50 (fifty) or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.
  • To every contractor who employs or who employed on any day of the preceding twelve months 50 (fifty) or more workmen.

Prior to the Amendment, the limit for applicability of the said Act in the State was 20 (twenty) or more workmen which was a small number . As we are aware that most of the medium and small enterprises are human intensive hence MSMEs were required to required to comply with more regulations.

Post 5th of January, 2017 business entities employing less than 50 contract labour or contractor employing less than 50 employees during preceding 12 months will be exempted .This will make operations easier for upcoming small scale units. Less number of compliance will lead to less complexity & the same will motivate higher number of start-ups to grow their roots in the state of Maharashtra.

Disclaimer : This is an effort by Lexcomply.com to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts. 

Ease of doing business: Delhi Contract Labour

anujThe Contract Labour (Regulation and Abolition) Act, 1970 is a Central Act. However mostly all States are having their own rules. Likewise Delhi is also having its own rules namely Delhi Contract Labour (Regulation and Abolition) Rules, 1970. In the said act there are two types of approvals, one is on the part of contractor, which is called license (section 12) and second is on the part of employer, which is called registration certificate (section 7).

As Govt. of every State has been focusing on “Ease of Doing Business” and to take it forward the Labour Department Govt. of NCT of Delhi, has decided to easy the procedure for granting of registration & license in the following manner:

  1. Facility of filing of application form for license(Form IV)/registration(Form I) through online is avail.
  2. Application for license shall be supported by certificate issued by Principal Employer in form V.
  3. Application form whether for license or for registration, shall be supported by MOA & AOA or partnership deed or Proprietor’s ID proof as the case may be.
  4. Details of fee to be paid should be given in application form.
  5. Wages shall be paid to the contract workers only through A/C payee Cheque/ECS transfer.
  6. Contractor to comply all the conditions of license as provided in rule 25.
  7. License/registration certificate shall be granted by concerned officer within 7 days from the date of receiving of application.

Disclaimer : This is an effort by Lexcomply.com to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts.