CONTRACT LABOUR UNDER CONTRACT LABOUR (REGULATION & ABOLITION) ACTS, 1970

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Government of India   Ministry of Railways   Master Circular No. 26     CONTRACT LABOUR UNDER CONTRACT LABOUR (REGULATION & ABOLITION) ACTS, 1970   CONTENTS           S. N Particulars 1 Background 2 Contract Labour (Regulation & Abolition) Act, 1970 2.1 Application 2.2 Workman 2.3 Contractor 2.4 Establishment 2.5 Principal Employer 2.6 Registration Of An Establishment 3 Principal Employer 4 Jurisdiction Of Registration Officers 5 Intimation To Registration Officers Regarding Changes 6 Prohibition On Employment Of Contract Labour 6.1 Prohibition On Employment In Catering And Pantry Cars 7 Establishments Exempted From Contract Labour (R&A) Act & Rules 8 Regulation Of Working Hours For Female Workers 9 Fixation Of Rates For Labour Contract Societies 10 Responsibilities Of Principal Employers vis-a-vis Contractors 11 Labour Cooperative Societies 12 Records And Registers 13 Adherence To Provisions Of Contract Labour (R&A) Act, 1970 & Rules, 1971 14 General Original Orders/Circulars From Which Consolidation Has Been Made Particulars Letter No. Date Application of the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and the rules framed there under to contract labour on Railways. E (LL) 70AT/CNR/1-3 15.10.1971 Award of handling contracts to Co-operative Labour Contract Societies — Application of the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and the rules framed there under to. 72/E (Co-op) L/10/4 28.09.1972 Application of the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and the rules framed there under to contract labour on Railways. E (LL) 70AT/CNR/1-3 06.04.1973 Application of the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and the rules framed there under — Registration of establishment. E(LL) 73AT/CNR/1-15 14.09.1973 Contract Labour (Regulation and Abolition) Act, 1970 and Rules framed there under—Violation of. E(LL) 73AT/CNR/1-15 24.10.1973 Contract Labour (Regulation and Abolition) Act, 1970 — Prohibition of employment of contract labour for sweeping, cleaning, dusting and watching of buildings. E (LL) 77 AT/CNR/1-1 Notification No. 4-23013 (7)/ 76-LW 14.01.1977   06.12.1976 Particulars Letter No. Date Difficulties arising from the enforcement of Rule 25(2) (v) (a) of the Contract Labour (Regulation and Abolition) Central Rules 1971 requiring contract labour to be paid on the basis of the wages applicable to labour directly employed by the Railways as the Principal employer. E (LL) 75 AT/CNR/1-7 06.04.1977 Coal handling labour contract societies on the Railways. 81/E (Co-op)/ll/3 18.09.1981 Contract Labour (Regulation & Abolition) Act, 1970 — Prohibition of employment of contract labour for sweeping, cleaning, dusting and watching of buildings. E(LL) 82AT/CNR/1-28 06.01.1983 Award of Goods/Parcel Handling Contracts to Co-operative Labour Contract Societies — Revision of rates during the currency of the contracts. 84/E (Co-op)/14/14 RBE 300/85 15.11.1985 Prohibition of contract labour system for cleaning work in Catering Establishments/ Pantry Cars. E(LL) 87AT/CNR/1- 27 Notification No. S-16014  8/87-LW 15.09.1987   28.07.1987 Facilities and concessions provided under Contract Labour (R&A) Act, 1970 and the Rules made there under, to Railway Labour Cooperative Societies. 82/E (Co-op)/12/15 RBE 233/87 24.09.1987 Other Railway Boards Orders on the Subject The Bare Act               CONTRACT LABOUR UNDER CONTRACT LABOUR (REGULATION & ABOLITION) ACTS, 1970     At present the orders relating to “Contract Labour” are contained in a number of office circulars/orders issued from time to time. The question of consolidation of these existing orders/circulars into one Master Circular has been under the consideration of the Ministry of Railways (Railway Board). They have now decided to issue consolidated instruction on the subject as below for the information and guidance of all concerned.   2. The Central Government, in order to regulate the employment of contract labour, brought out the Contract Labour (Regulation and Abolition) Act, 1970 and the Rules made thereunder in 1971, effective from 10.02.1971. (Authority:   Contract Labour (Regulation & Abolition) Act, 1970 and the Rules made thereunder and Amendments issued from time to time.)   Some of the important provisions of the Act and the rules made thereunder are reproduced below for convenience sake: —   2.1. Applicability: – It applies   (a) To every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour, and   (b) To every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.   Note:   (i) The Central Government may, by Notification in the Official Gazette, apply this Act to any establishment or contractor employing less than 20 workmen.   (ii) The above provision shall not apply to establishment in which work only of an intermittent or casual nature is performed.             2.2. Workman:   A workman shall be deemed to be employed as “Contract Labour” in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer.   2.3. Contractor:   “Contractor”, in relation to an establishment, means a person who undertakes to produce a given result for the establishment other than a mere supply of goods or articles of manufacture to such establishments, through Contract Labour or who supplies Contract Labour for any work of the establishment and includes a sub-contractor.   2.4. Establishment:   (i) Any office or department of the Government or a local authority; or   (ii) Any place where any industry, trade, business, manufactures or occupation is carried on.   2.5. Principal Employer: – Principal employer means: —   (i) In relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or local authority, as the case may be, may specify in this behalf;   (ii) In a factory, the owner or occupier of the factory and where a person has been named as the Manager of the factory under the Factories Act, 1948, the person so named.   2.6 Registration of an establishment:   Every Principal employer of an establishment to which the Contract Labour (R&A) Act applies shall, within such period as the appropriate Government may, by notification in the Official Gazette. fix with respect to each establishment, make an application to the registering officer in the prescribed manner for registration of the establishment.   3.On the Railways the Divisional Officers in the Divisions, Senior Mechanical Engineers, Deputy Chief Mechanical Engineers or Works Managers (as the case may be) in respect of workshops, District Controllers of Stores in respect of Stores Depots, Executive Engineers in respect of constructions, Heads of Departments in respect of contracts directly controlled by the Headquarters have been nominated “Principal Employer”. They are answerable for fulfilling the requirements of the Act and the Rules as representatives of the Railway Establishments under their administrative control. [No. E (LL) 70/AT/CNR/1-3 dated 15.10.1971]   4.In accordance with the provisions of Rule 17 and Form I, prescribed for registration of establishment under the Contract Labour (R&A) Act and Rules 1971, it is not necessary for a “Principal Employer” to apply for registration separately for each and every establishment where contract labour is employed. The “Principal Employer” is required to register all his establishments collectively at a time where contractors are engaged and which fall within the jurisdiction of the same Registration Officer. However, if some of the establishments under “Principal Employer” fall under the jurisdiction of two or more Registration Officers, separate application to each Registration Officer has to be sent. [No. E (LL) 70/AT/CNR/1-3 dated 14.09.1973]   5. Rule 18(4) of the Contract Labour (R&A) Rules, 1971, require that if, in relation to an establishment, there is any change in the particulars specified in the certificate of registration, the “Principal Employer” of the establishment should intimate to the Registering officer within thirty days from the date when such change takes place, the particulars of and the reasons for such change. Failure to do this would mean prosecution of the “Principal Employer”. [No. E (LL) 731AT/CNR/1-15 dated 24.10.1973] 6. Employment of Contract Labour on and from 01.03.1977 for sweeping, cleaning, dusting and watching of buildings owned and occupied by establishments in respect of which the appropriate Government is the Central Government is prohibited. [Nos. E (LL) 77/AT/CNR/1-1 dated 14.01.1977 & (E (LL) 82/AT/CNR/1-28 dated 06.01.1983]                         6.1.With effect from 28.07.1987, employment of Contract Labour in the work of cleaning in Catering establishments and pantry cars on Railways is prohibited. [No. E (U.) 87/AT/CNR/I-27 dated 15.09.1987]   7.  Provisions of Contract Labour (R&A) Act and the Rules made thereunder do not apply to establishments like Vegetarian/Non-vegetarian Refreshment Rooms, other Refreshment Rooms, Tea-stalls curio shops run by private individuals on obtaining licenses from the Railways. [No. E (LL) 70 ATICNR/1-3 dated 06.04.1973]   8.  Employment of Female workers under contractors, including Co-operative Societies, in Railway premises in the night between 10 p.m. and 6 a.m. should be avoided. [No. 811E(Coop)/11/3 dated 18.09.1981]   9.  The provisions of Contract Labour (R&A) Act, 1970, should be kept in view when rates for Labour Contract Societies are decided. [Nos. 72/E (Coop)/L/10/4 dated 28.09.1972 & 841E(Coop) 14/14 dated 15.11.1985]   10. Under the Contract Labour (R&A) Act, 1970 and the Rules 1971 the Contractor who employs the labour is required to provide certain basic amenities like canteens, rest rooms, drinking water, urinals, First Aid etc. It is the “Principal Employer’s” responsibility to see mat the contractor comply with the requirements of the Act. In case these facilities are not provided by the contractor, the same will be provided by the Principal Employer and all the expenses incurred will be recovered from the contractor. [Authority: Chapter V of Contract Labour (R&A) Act, 1970]   10.1 Similarly, the Principal Employer should ensure that payment of wages is made by the contractor to all the workmen employed falling which the Principal Employer should make the payment and recover the same from the contractor subsequently.   10.2 Wherever the work done by the contract labour and the Casual/Temporary workers on the Railways is same or of similar kind, for the purpose of determining what should be payable to contract labour, comparison should be made with wages etc. paid by the “Principal Employer” to the casual labour employed by him directly. [No. E (LL) 75/ATICNR/1-7 dated 06.04.1977]   10.3 Where, however, such a comparison is not possible on account of non- employment of Casual Labour/Temporary workers by the “Principal Employer” and the   “Principal Employer” is of the view that the wages paid by the contractor is unreasonably low, i.e., even lower than the rates paid under the Minimum Wages Act, and where the Minimum Wages Act is not applicable to such employees, the wages, on being reported by the “Principal Employer”, will be fixed by the Chief Labour Commissioner (Central).   11.   In the case of contracts awarded to the Labour Co-operative Societies also it should be ensured, during the currency of the contract, that the contractor provide all the amenities/conveniences as laid down in the Contract Labour (R&A) Act, 1970. Failure on the part of the Labour Co-operative Society to do so will lead to action being taken against them under the Act. [No. 82/E (Co-op) 1215 dated 24.09.1987]   12.   Every “Principal Employer” is required to maintain and exhibit such registers and records giving particulars of contract labour employed, the nature of work performed, the rates of wages paid etc., in such forms as prescribed under the Act & Rules. [Authority: Para 29 of Chapter VII of the Act 1970 & Rules 1971]   13.   The Railways (if they are not already having) should make arrangements to have an up-to-date copy of the Contract Labour (R&A) Act, 1970 and the Rules 1971 with all the amendments issued from time to time and follow the provisions as laid down in consultation with their FA & CAOs strictly. [No. E (LL) 70/AT/CNR/1-3 dated 15.10.1971] 14.       General:   (a)  While referring to this Circular, the original letters referred to herein should be read for a proper appreciation. This circular is only a consolidation of the instructions issued so far and should not be treated as a substitution to the originals. In case of doubt, the original circular should be relied upon as authority.   (b)  The instructions contained in the original circulars referred to have only prospective effect from the date of issue unless specifically indicated otherwise m the concerned circular. For dealing with old cases, the instructions in force at the relevant time should be referred to; and   (c)  If any circular on the subject, which has not been superseded, has not been taken into consideration while preparing this consolidated letter, the said circular, which has been missed through oversight, should be treated as valid and operative. Such a missing circular, if any, may be brought to the notice of the Railway Board.         1. Subject: Application of the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and the rules framed thereunder to contract labour on Railways. [No. E (LL) 70ATICNR11-3 dated 15.10.1971]   Reference is invited to the instructions contained in D. O. letters No. 60/289/15/Fuel dated 19.7.1968 and No. E (LL) 70AT/CNR/1-1 dated 5.6.1970 from the Chairman, Railway Board wherein you were advised that pending the passing by the Parliament of the Contract Labour (Regulation and Abolition) Bill and until the area of prohibition of contract working was defined, it would be impolitic for Railways to change over to contract work any regular item of work which they had traditionally handled departmentally over long periods.   2.         The Contract Labour (Regulation and Abolition) Act, 1970 as well as the Contract Labour (Regulation and Abolition) Central Rules, 1971 are now to come into force from l0th February 1971. The Ministry of Labour and Employment have issued four notifications on 21.07.1971 notifying the appointment of the officers of the Central Industrial Relations of Machinery as the “Registration Officers”, “Licensing Officers”, “Appellate Authorities” and “Inspectors” under the Act. A copy each of the Act, the Rules and the four Notifications is enclosed. – Though this Act does not envisage altogether abolition of contract labour in any establishment or industry, certain criteria have been laid down in Section 10 of the Act for prohibition of such employment. However, the question of abolition of contract system in any of the non-seasonal works on the Railways with reference to the above provisions will be taken up and decided by the Ministry of Labour and Employment in the case of Railways in consultation with the Central Advisory Contract Labour Board to be constituted under the Act as and when occasions arise and the Railways will be advised of the decisions in due course.   In the meanwhile, so far as the present system of employment of contract labour for various types of work on Railways is concerned, the Railways as the “principal employer” of contract labour engaged in different departments are required to comply with the relevant provisions made in the Act and the Rules relating to the registration of each establishment on payment of prescribed registration fees; provision of certain basis amenities and ensuring the payment of wages to labour in cases of failures of contractors concerned, submission of prescribed registers and returns etc.   For proper implementation of the provisions of the Act and the Rules it has been decided by the Board as under: —   (a) The Divisional Officers in Divisions, Senior Mechanical Engineers, Deputy Chief Mechanical Engineers and Works Managers (as the case may be) in respect of workshops, District Controller of Stores in respect of stores Depots, Executive Engineers in respect of constructions, Heads of Departments in respect of contracts directly controlled by Headquarters may be nominated as “Principal Employer” and they will be held answerable for fulfilling the requirements of the Act and the Rules as representatives of the Railway establishments under their administrative control.     (b)  Nucleus staff for all the “Principal employers” in a Divisional office, as a central cell, who have a sizeable number of contracts such as the Engineering officers and Commercial Officers may if necessary be sanctioned after obtaining Bd’s prior approval.   (c)  Expenditure on registration of establishments etc. may also be incurred by the Railways.   3.         The Board desire that while their decision referred to in para l above that departmental work now being done for non-seasonal work should under no circumstances be switched over to contract labour should be adhered to by the Railways until further orders, they should at the same time take necessary immediate steps to examine carefully in consultation with the departmental heads concerned including the FA & CAOs the statutory provisions of the aforesaid Act and the Central Rules and ensure that all the relevant provisions are strictly complied with so far as the prevalent system of employment of contract labour for various types of work on Railways are concerned.   2.     Subject: Award of handling contracts to Co-operative Labour Contract Societies — Application of the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and the rules framed thereunder to. [No. 721 E (Co-op) II 1014 dated 28.9.1972]   Board had issued instructions to Railways in their letter No. E (LL) 70AT/CNR/1-3 dated 15.10.1971 that immediate steps should be taken to examine carefully in consultation with the departmental heads concerned, including the FA&CAO the statutory provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and the Central Rules and ensure that all the relevant provisions are strictly complied with so far as the prevalent system of employment of contract labour for various types of work on Railways are concerned.   Rule No. 25 of the Central Rules made under the said Act provides guidelines for fixation of wages payable to the workmen by the contractors. However, in the case of allotment of a Parcels handling contract, a certain Railway stated that the workability of the rates were not examined in relation to the specific provisions in the Contract Labour (Regulation and Abolition) Act, 1970.   In terms of Board’s extant orders, handling contracts for goods, parcels, coal, coal-ashes, cinder-picking, ash-pit cleaning, etc., upto an annual valuation of Rs. 2 lacs are awarded to registered co-operative societies of actual workers, through negotiations, without call of tenders. The rates in such cases are determined by a Committee of Railway Officers not below the rank of Sr. Scale. The workability of rates fixed in such cases assumes special significance.   It is, therefore, requested that while determining the rates for allotment of such contracts to co-operative labour contract societies, all relevant factors, including the provisions of said Act and the Rules made thereunder should be taken into consideration.   3.     Subject: Application of the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and the rules framed there under to contract labour on Railways.  [No. E (LL) 70ATICNR11-3 dated 06.04.1973]   Reference Railway Board’s letter of even number dated the 15.10.1971. The Board have had under consideration the question whether the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 are applicable to vegetarian/non-vegetarian Refreshment Rooms, other Refreshment Rooms, Tea Stalls and Curios Stalls, run by private individuals on obtaining licenses from the Railways. They have, in consultation with the Ministry of Labour, Employment & Rehabilitation, decided that the provisions of the said Act need not be applied to the establishments mentioned above as these are in the nature of licenses and not contractors within the meaning of the Act.   4.   Subject: Application of the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and the rules framed thereunder — Registration of establishment. [No. E (LL) 72ATICNR11-3 P t. dated 14.09.1973}   Please refer to your letter No. E 778/0/1/Pt. I dated 09.08.1972, wherein the question as to whether it is incumbent on each “Principal Employer” to register separately all the establishments under him or it will suffice if each Principal Employer registers himself as such on State basis for all establishments under his control, has been raised.   2.     It is clarified that in accordance with the provisions of Rule 17 and Form I prescribed for registration of establishment under the Contract Labour (Regulation and Abolition) Central Rules 1971 it is not necessary for a “Principal Employer” to apply for registration separately for each and every establishment where contract labour is employed. Hence each “Principal Employer” who has been nominated under Board’s letter No. E (LL) 70AT/CNR/1-3 dated 15.10.1971 is required to register all his establishments collectively at a time where contractors are engaged and which fall within the jurisdiction of the same registration officer appointed by the Department of Labour and Employment. However, if some of the establishments under a “Principal Employer” fall under the jurisdiction of two or more Registration officers, separate application may be sent to each Registration officer concerned.                          3.    In this connection a copy of clarificatory orders issued by the Chief Labour Commissioner (Central), New Delhi-to Asstt. Labour Commissioner (Central), Calcutta vide his Memorandum No. 4(1) 72-LS.III dated 22.03.1973 is enclosed for information and guidance.   Copy of Memorandum No. 4(1)/72-LS. HI, dated 22.03.1973 from Chief Labour Commissioner (C) Addressed to ALC(C), Calcutta etc.   Subject: The Contract Labour (Regulation and Abolition) Act 1970 — Request for refund of the amount of registration fees deposited by the Executive Engineer, CPWD, Calcutta.   Reference letter No. ALC-I/R-(12)/71, dated 11.07.1972 and reminder dated 19th August, 1972 from the ALC(C) Calcutta on the subject mentioned above, he is informed that registration fee is not refundable. In this connection attention is invited to this office Memo. No. 10(15)/72-LS.III, dated the 06.091972.   2.    The Divisional Engineers can get themselves registered as Principal Employers and there is no need to register the B ranch officers provided that whenever a Division falls within the jurisdiction of two Registering Officers (ALCs), then the Divisional Officer should register himself as the Principal Employer for his units (as a whole) falling under each Registering Officer. In other words, if the units under a Divisional Officers are distributed within the jurisdictions of two Registering Officers “A” and “B” then he should take out one certificate of registration each from “A” and “B” in respect of his units falling within the jurisdiction of “A” and “B”. No certificate of registration is required for each individual unit (establishment) under the same Registering Officer, provided that one certificate of Registration has been taken out by the Divisional Officer for all the Units under him within the jurisdiction of the Registering Officer.   5.   Subject: Contract Labour (Regulation and Abolition) Act, 1970 and Rules framed there under—Violation of. [No. E (LL) 73AT/CNR/1-15 dated 24.10.1973]   The Department of Labour and Employment have taken up the question of prosecution of the concerned Railway authority in a case of violation of Rule 18(4) of the Contract Labour (Regulation and Abolition) Rules 1971. This rule requires that if in relation to an establishment, there is any change, in the particulars specified in the certificate of registration, the principal employer of the establishment shall intimate to the registering officer, within thirty days from the date when such change takes place, the particulars of, and the reasons for, such change. The violation in this particular case was in regard to delay in reporting change in regard to the increase in the strength of labour employed by the contractor in connection with a Railway work within the stipulated period of thirty days.   The Board desire that the Railway Administrations should take steps to ensure that any change in the particulars specified in the certificate of registration is intimated to the Registration Officer within the stipulated period of 30 days.   6.   Subject: Contract Labour (Regulation and Abolition) Act, 1970 — Prohibition of employment of contract labour for sweeping, cleaning, dusting and watching of buildings. [No. E (LL) 77ATICNR11-1 dated 14.01.1977]   A copy of the notification No. U-23013 (7)/76-LW, dated 06.12.1976 issued by the Central Government in the Ministry of Labour prohibiting employment of contract labour on and from 01.03.1977 for sweeping, cleaning, dusting and watching of buildings owned or occupied by establishments in respect of which the appropriate Government is the Central Government is sent herewith for information and guidance.   ANNEXURE   To be published in the Gazette of India, Extraordinary, Part II, Section 3 [Notification No. 4-23013 (7)/76-LW]   Government of India, Ministry of Labour New Delhi, dated, the 6th December 1976   Notification   S.O. No….. In exercise of the power conferred by sub-section (l) of section 10 of the Contract Labour (Regulation and Abolition) Act, 1970 (37 of 1970) the Central Government after consultation with the Central Advisory Contract Labour Board, hereby prohibits employment of contract labour on and from the 01.03.1977, for sweeping, cleaning dusting and watching of buildings owned or occupied by establishments in respect of which the appropriate Government under the said Act is the Central Government.   Provided that this notification shall not apply to the outside cleaning and other maintenance operations of multi-storied buildings where such cleaning or maintenance operations cannot be carried out; except with specialised experience.   7.   Subject: Difficulties arising from the enforcement of Rule 25(2) (v) (a) of the Contract Labour (Regulation and Abolition) Central Rules 1971 requiring contract labour to be paid on the basis of the wages applicable to labour directly employed by the Railways as the Principal employer. [No. E (LL) 75ATICNR11-7 dated 06.04.1977]   Reference Ministry of Railways letter No. E (LL) 75/AT/CNR/ 1-7 dated 24.02.1976 and No. E (LL) 75/AT/CNR/1-l 5 dated 17.02.1976 on the above subject. The difficulties involved in the implementation of the provisions of Rule 25 (2) (v) (a) of the Contract Labour (Regulation & Abolition) Central Rules, 1971 have been further considered and the Government have taken the following decision. For the purpose of the interpretation and implementation of Rule 25 (2) (v) (a) of the aforesaid Rule wages, working hours, holidays and the like which should be deemed to be admissible to contract labour, should be the same as are allowed to casual/temporary workers directly employed by the principal employer, wherever the work done by these two types of workers is same or of similar kind. In other words for the purpose of determining what should be payable to contract labour, it is not necessary to compare the wages etc. allowed by the principal employer to his regular employees, but the comparison should be with wages etc. payable by the principal employer to casual labour employed by him directly.   2.     Where, however, the principal employer does not employ any casual/temporary workers at all or casual/temporary workers under particular categories, no comparison would be possible. If the Minimum Wages Act does not apply to such cases and the wages paid by the contractor to his workers are unreasonably low i.e. even lower man the minimum wages fixed for similar employments covered by the Minimum Wages Act, the rates of wages etc. may be fixed by the Chief Labour Commissioner (Central) by invoking Rule 25 (2) (v) (b) of the Contract Labour (Regulation & Abolition) Central Rules 1971.   3.    The Chief Labour Commissioner (Central) New Delhi has communicated the above decision confidentially to all Regional Labour Commissioners (Central).   4.    Accordingly the Ministry of Railways desire mat all the officers concerned on the Railways should be apprised of the Government decision quoted above and they may be advised to ensure compliance with the decisions in respect of contract labour who are not covered by the Minimum Wages Act.   8. Subject: Coal handling labour contract societies on the Railways.   Reference:Your letter No. E/58/96/II dated 18.08.1981. [No. 81/E (Coop)/ll/3, dated 18.09.1981]   A point has been raised whether female labour can be allowed to work in sheds and yards for coal/ash handling and cinder picking work on the Railways. The work of handling of coal, ash, cinder picking and goods parcels & transshipment on the Railways is done either departmentally or on contract basis. Para 11 (iv) of the Subsidiary Instructions made under the Hours of Employment Regulations prohibits the employment of women at night between 10 p.m. and 6 a.m. except where women only are to be employed e.g. nurses, etc.   The employment of contract labour is regulated in terms of the provisions of the Contract Labour (Regulation & Abolition) Act, 1970 and the Rules made thereunder. There is no provision in the said Act & Rules prohibiting employment of women on the Railways. There is no statutory provision on the part of contractors for not engaging female workers in the night. However, it is desirable that the employment of female workers under contractors including Co-operatives in Railway premises in night between 10 p.m. & 6 a.m. is avoided as far as possible.   9.   Subject: Contract Labour (Regulation & Abolition) Act, 1970 — Prohibition of employment of contract labour for sweeping, cleaning, dusting and watching of buildings. [No. E (LL) 82ATICNR/1-28 dated 06.01.1983]   Reference Ministry of Railways letter No. E (LL) 77AT/CNR/1-1 dated the 14.01.1977 forwarding a copy of the Notification No. U-23013 (7)/76-LW dated 06.12.1976 issued by the Ministry of Labour prohibiting employment of contract labour for sweeping, cleaning, dusting and watching of buildings owned or occupied by establishments in respect of which the appropriate Government is the Central Government.   In view of the fact that the Contract Labour (Regulation & Abolition) Act applies to establishments in which twenty or more workmen are employed or were employed, a doubt has been raised as to whether the aforesaid notification is applicable to establishments employing less than twenty contract labour in these operations.   The matter has been examined in consultation with the Ministry of Labour and Legal Adviser, Railway Board. This Ministry has been advised that no contract labour, regardless of its number, can be employed in any category in an establishment in respect of which a Notification under Section 10 of the Contract Labour (Regulation & Abolition) Act, 1970 has been issued.   10.   Subject: Award of Goods/Parcel Handling Contracts to Co-operative Labour Contract Societies — Revision of rates during the currency of the contracts. [No. 841E(Coop) 114114 dated 15.11.1985; RBE 300/85]   According to the Board’s letter No. 66/E (Coop)/L/2/4 dated 27.11.1968 read with Board’s letter No. 72/E (Coop)/L/l/5 dated 21.09.1973, the contracts of goods, parcels, coal handling, removal of coal ashes, ash pit cleaning cinder picking can be awarded to available and willing genuine Labour Cooperative Societies of actual workers with not more than two outsiders without call of tenders. In such cases, the rates are recommended with regard to local conditions, taking into consideration the minimum wage rate fixed for labour by the local authority, or where it does not exist, the market rate, the statutory obligations such as weekly off, bonus etc., volume of work and all other relevant factors, by a Committee of three officers not below the rank of senior scale, one of whom should be an Accounts Officer, and put up to the competent authority for approval.   2.         It was also decided vide Board’s letter No. 78/E (Coop)/14/ 3 dated 02.08.1980 that the handling contracts would be covered under “Conveyance of materials” provided in para 401-S. Accordingly, the revision of rates/annual fixation of rates in respect of handling contracts, wherever circumstances warrant, are required to be done in terms of para 401-S in consultation with Finance and with the approval of the competent authority. It was also clarified vide Board’s letter No. 78/ E (Coop)/14/3 dated 14.09.1979) that the three years term of award of Goods and Parcel Handling Contracts was not a rigid order and was in the nature of a guideline so as to avoid frequent calling of tenders and fixation of rates for handling purposes, and as the duration of a contract is matter to be settled between the parties to the contract, Railway Board had no objection to the conclusion of the contracts for one year instead of 3 years period.   3.         Certain Railways have represented that para 401-S read with 440-S places a restriction on them for upward revision in rates involving not more than 5{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} excess over the total value of the handling contract. However, in many cases, the upward revision in fair/minimum wages announced by the local authorities are so high as to call for revision in rates in excess of 5{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} of the total value of the handling contract which the Railways are unable to meet due to’ said restriction of 5{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} provided for in the Stores Code   4.         The Board have considered this issue and here now decided that in case there is an increase/decrease in minimum/fair wages notified by the local authority during the currency of the contractual period of any labour co-operative society, the handling contract rate may be adjusted accordingly to account for the increase/decreased liability on the co-operative societies on this account. The procedure to be followed for recommending/approving such revisions in the contract rates will be the same as prescribed for original award of the contract i.e. the Committee of 3 senior scale officers will take into account the variation on account of labour rates amended by the State authorities. If considered necessary, a provision to this effect may be included in the agreement entered with the Labour Handling Co-operative Societies.   5.         These orders will take effect from the date of issue of this letter.   6.         This issues with the concurrence of the Finance Directorate in the Ministry of Transport, Department of Railways (Railway Board).   11.   Subject: Prohibition of contract labour system for cleaning work in Catering Establishments/Pantry Cars. [No. E (LL) 87ATICNR11-27 dated 15.09.1987]   A copy of Notification No. S-16014/8/87-LW dated 28.07.1987 issued by the Ministry of Labour prohibiting employment of contract labour for cleaning in catering establishments and pantry cars on Railways is sent herewith for information and guidance.   To be published in the Gazette of India Extraordinary Part II Section 3 Sub-Section (U) on 28.07.1987. (Notification No. S-16014/8/87-LW)   Government of India, Ministry of Labour New Delhi, dated the 28th July, 1987   Notification   S.O. No. 747 (E): In exercise of the powers conferred by sub-section (l) of section 10 of the Contract Labour (Regulation & Abolition) Act, 1970 (37 of 1970), the Central Government, after consultation with the Central Board, hereby prohibits the employment of contract labour in the work of cleaning in catering establishments and pantry cars on Railways in the country, with effect from the date of publication of this notification in the Official Gazette.   12.   Subject: Facilities and concessions provided under Contract Labour (R&A) Act, 1970 and the Rules made thereunder, to Railway Labour Cooperative Societies.   Reference: Board’s letter Nos. E (LL) 70AT/CNR/1-3 dated 15.10.1971 and 72/E (Coop)/L/10/4 dated 28.09.1972. [No. 82/E (Coop)/12/5 dated 24.09.1987; RBE 233/87]   In Board’s letter No. E (LL) 70AT/CNR1-3 dated 15.10.1971, it has, inter-alia, been mentioned that the Railways as Principal Employer’ of the contract labour engaged in different departments are required to comply with the relevant provisions made in the Contract Labour (R&A) Act and the Rules framed thereunder, relating to the registration of each establishment on payment of the prescribed registration fee; provisions of certain basic amenities and ensuring the payment of wages in cases of failure of the contractors concerned; submission of the prescribed registers and returns, etc. It has also been laid down that immediate steps should be taken to examine carefully, in consultation with the Departmental Head concerned, including the FA&CAO, statutory provisions of the Contract Labour (R&A) Act, 1970 and the Central Rules and ensure that all the relevant provisions are strictly complied with so far as prevalent system of employment of contract labour on various types of works on Railways are concerned. It has also been reiterated in Boards’ letter No. 72/E (Coop)/L/10/4 dated 28.09.1972 that while determining rates for parcels, coal, coal ashes, cinder picking, ash pit cleaning, etc. contracts upto a valuation of Rs. 2 lakhs (the limit has been removed) to the labour cooperative contract societies, relevant factors, including the provisions of the said Act and the Rules framed thereunder, should be taken into consideration.   2.         It has, however, been brought to Board’s notice that statutory amenities / conveniences as contained in the Act are not being provided to the workers of the labour cooperative societies. It should be understood that the Railway, as the principal employer, is required to ensure compliance with all the provisions of the Act, including the provisions of certain basic amenities to the workers of the labour co­operative societies free of cost.   3.         It should, therefore, be ensured, at the time of award of contracts to labour co-operative societies or during the currency of the contracts, that labour cooperative societies are actually making available all the amenities/conveniences as laid down in the Act to their workers.Failure on the part of a labour cooperative society to do so, may lead to serious complications.

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