Directorate of Employment and Training Department of Factories and Boilers Directorate of ESIS(M) Services

8.  The Contract Labour (Regulation & Abolition) Act, 1970. (Central Act w.e.f. 07-09-70)

Object This Act to regulate the employment of contract labour in certain establishments and to provide for abolition of contract labour in certain circumstances and for other connected matters. 
 Applicability It extends to the whole of India and applies to every establishment or every contractor in which 20 or more workers are employed or were employed on any day of the preceeding 12 months as contract labour registration is compulsory to employ contract labour.
Registration of Establishment Application in triplicate in Form –I shall be made to the concerned ALC along with the fee for registration. 
Contract licences Contractors shall have licence to employ contract labour. Application for licence shall be made in triplicate in Form –IV to the concerned ALC along with fee and a certificate from the Principal Employer in Form –V.  Contractor must pay the security deposit at the rate of Rs. 10/- for each workman.  If the contractor is a co-opeprative society, the amount of security deposit is only Rs. 5/- per worker.


Registration / licence fee is as under:

Number of employees:

Registration fee:

Licence fee:


Rs. 150/-


21 to 50

Rs. 375/-

Rs. 150/-

51 to 100

Rs. 750/-

Rs. 300/-

101 to 200

Rs. 1,500/-

Rs. 500/-

201 to 400

Rs. 3,000

Rs. 1,000/-

401 and above

Rs. 3,750/-

Rs. 1,250/-


The fee for amendment of registration certificate, is Rs. 25/- for per change.  The fee for transfer of registration certificate is Rs. 25/-.  

Renewal of licence The contractor shall apply in Form –VII, in triplicate, not less than 30 days before expiry of licence for renewal to the same issuing authority.  The same fees will be charged for renewal.  In case, application is not received before one month of expiry of licence, 25 percent of the fee prescribed will be charged as extra fees.   The licence is to be renewed for every year.  There is a provision for issue of temporary registration certificate and licence for which the fee will be as follows:


Number of employees:

Registration fee:

Licence fee:

21 to 50

Rs. 10/-

Rs. 5/-

51 to 200

Rs. 20/-

Rs. 20/-

201 and above

Rs. 30/-

Rs. 30/-



The Principal Employer and the Contractors are responsible for ensuring compliance with the provisions of law.

Penalties are prescribed under the Act for violations. Deputy Labour Commissioner is the Appellate Authority under the Act.

The Karnataka State Contract Labour Advisory Board is constituted with the members of representative of employers and employees and Government Officers.  The Hon’ble Minister for Labour is the Chairman of the Board.

Rules (1) The Contract Labour (Regulation & Abolition) Rules, 1971 – applies to Central Government undertakings.
  (2) The Contract Labour (Regulation & Abolition) Karnataka Rules, 1974  – applies to whole State of Karnataka and for all the units in Karnataka other than Central Government.

Registrers to be maintained under the Karnataka Rules by the Principal Employer

i)     Register of contractors in Form XII

ii)     Annual Return in Form XXV

Registrers to be maintained by the contractors

i)     Register of persons employed in Form XIII
ii)    Employment card in Form XIV to each worker
iii)   Service Certificate on termination in Form XV
iv)   Wage slip in Form XIX
v)   Register of wages – XVII

Annual Return

Purpose When to Submit Form / Re-turn By Whom To Whom Relevant Section / Rule
(1) (2) (3) (4) (5) (6)
Submission of half yearly return Not later than 30 days from the close of the half year Form - XXIV

(in duplicate)

Every Contractor Asst. labour Commissioner of the concern-ed area Section 11 & Rule 82 (1)
Submission of Annual Return Not later than the 15th Feb, following the end of the year to which it relates Form - XXV

(in duplicate)


Every Principal Employer Asst. labour Commissioner of the concern-ed area Section 6 & Rule 82 (2)


The Karnataka State Contract Labour Advisory Board has been constituted as per Section 4 of the Contract Labour (Regulation & Abolition) Act, 1970, and Rule 3 of the Contract Labour (Regulation & Abolition) Act, 1974, to advise the Government in respect of matters relating to abolition vide Notification No. KAE 40 LWA 98 dated 20-10-01 with the following Members:

             (i) Hon’ble Minister for Labour



(ii)                 Commissioner of Labour in Karnataka, Bangalore

(iii)                Secretary to Government, Commerce & Industries Dept.

(iv)               Managing Director or his nominee, KSRTC (Central Office)

(v)                 Managing Director or his nominee, M/s Kirloskar Electricals Company Limited, Malleswaram (West)

(vi)               Managing Director or his nominee, M/s Widia India Limited, Tumkur Road, Bangalore.

(vii)              President, Karnataka State Contractors Association.

(viii)             Sri Arun K Malpani, Contractor, Industries House, No. 45, Race Course Road, Bangalore.

(ix)                President or his nominee, KSRTC Staff & Workers Federation, No.25, Ist Floor, 4th Cross, Sampige Road, Malleswaram, Bangalore-3.

(x)                 V J K Nair, President, West Coast paper Mills Employees Union, Near Bambu Gate, Dandeli (North Kanara district)

(xi)                Sri N M  Adhyanthaiah, President, INTUC, Karnataka, No. 8-B, Nagi Tower, Kathri hills, opposite to Circuit House, Mangalore.

(xii)              President or his nominee, BEML Contract Workers Union, No.1, Corporation Building, BMC Raman Road, Bangalore.

(xiii)             Sri P Androse Irudhayanathan, Honorary President, M P M Contract Workers Union, Sri Manjunath Nilaya, K C Road, Thirthahalli, Shimoga.

            (xiv)       Deputy Labour Commissioner (P&S)



Top Home