Contract Labour Act Rules and Regulations


The Contract Labour Act is essential legislation that governs the employment of contract labour in India. The act seeks to ensure the welfare of contract labourers and protect their rights. In this article, we will examine the rules and regulations of the Contract Labour Act and what employers need to know to comply with the law.

Registration of Establishment

Under Section 7 of the Contract Labour Act, every employer who engages contract labourers must register their establishment with the appropriate authority. The registration process involves submitting an application and providing details such as the nature of the work carried out and the number of contract labourers employed.

License for Contractors

Contractors who supply contract labourers must obtain a license from the appropriate authority under Section 12 of the Contract Labour Act. The license is valid for a period of one year and can be renewed upon its expiry. It is also mandatory for contractors to maintain registers containing details of the contract labourers they supply.

Wage Rates and Working Conditions

The Contract Labour Act stipulates that contract labourers must be paid the same wage rates as regular employees. They are also entitled to working conditions that are no less favourable than those provided to regular employees. Employers must ensure that contract labourers receive equal pay for equal work and that their working hours do not exceed the prescribed limit of 9 hours per day.

Employer’s Obligations

Employers are required to maintain a register of contract labourers employed by them, indicating their names, addresses, and other relevant details. They must also issue an employment card to every contract labourer that they engage. Employers are further required to provide basic amenities such as clean drinking water, washing facilities, and first aid provisions.


The Contract Labour Act provides for penalties in case of non-compliance. If an employer fails to register their establishment or obtain a license for contractors, they can be penalised with a fine. If an employer violates any of the provisions of the act, they can be punished with a fine and imprisonment.


The Contract Labour Act is an essential piece of legislation that protects the rights of contract labourers and ensures their welfare. Employers must comply with the rules and regulations of the act to avoid penalties and ensure that their business operates within the parameters of the law. By complying with the act, employers can create a safe and secure work environment for their employees, including contract labourers.