Contract Labour Amendment Rules 2017

The Contract Labour Amendment Rules 2017: What You Need to Know

The Contract Labour Amendment Rules, 2017 were introduced by the Ministry of Labour and Employment to amend the Contract Labour (Regulation and Abolition) Act, 1970. These new rules seek to provide greater protection and benefits to contract workers while also regulating the use of contract labour by employers.

One of the key changes introduced by the 2017 rules is the definition of «principal employer». Under the new rules, a principal employer is defined as «a person who has ultimate control over the affairs of an establishment and where the services of a contractor are utilized, the person who engages such contractor». This new definition aims to ensure that principal employers are held responsible for the welfare and safety of contract workers.

Another important change brought about by the rules is the requirement for contractors to have a license to operate. The new rules specify that contractors must obtain a license from the appropriate government authority before employing contract workers. This license will be valid for a period of five years and can be renewed upon expiration. The licensing process ensures that contractors are registered and regulated, and that they comply with all necessary labour laws and regulations.

The rules also increase the obligation of the principal employer to ensure that the contractor undertakes all necessary statutory compliances. The principal employer must ensure that the contractor has provided all necessary facilities, including safety equipment, medical facilities, and sanitation measures, to contract workers. Failure to comply with these obligations can lead to penalties and legal action against the principal employer.

Furthermore, the rules state that contract workers must be paid the same wages as regular employees who perform similar work. This is a significant improvement as contract workers are often paid significantly less than regular employees. The rules also prohibit contractors from engaging in labour-only contracting, where the contractor provides only labour and the tools and machinery required for the work are provided by the principal employer.

In conclusion, the Contract Labour Amendment Rules, 2017 provide much-needed protections for contract workers and ensure that they are treated fairly and equitably. These rules also help to regulate the use of contract labour by employers, ensuring that contractors are registered and regulated and that they comply with all necessary labour laws and regulations. As a professional, it is important to remember that this article should be optimized using relevant keywords to ensure that it ranks well in search engine results pages.

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