Implications of New Labour Codes on Contract Labour Engagement

Implications of New Labour Codes on Contract Labour Engagement
Through clear guidelines and defined parameters, the Code strives to provide a framework for addressing these challenges, ultimately fostering a more equitable and secure working environment for all stakeholders involved.

Introduction : With the evolution of the Contract Labour (Regulation & Abolition) Act, 1970, the contract labour system has been regularized. The law intended to abolish it wherever possible and practical and to regulate it through a registration process for Principal Employers and a licensing process for Contractors. Moving forward in the new code, it appears the legislative machinery has made maximum efforts to abolish the contract labour system not only in the ‘core activity’ but also in general.

Scope of new Code : The existing CLRA Act encompasses establishments or contractors engaging 20 or more workmen, albeit with some state-level variations to foster industrial growth and flexible staffing. Under the new Occupational Safety, Health and Working Conditions Code, 2020, this threshold has been revised to include establishments or contractors engaging 50 or more contract labour.

Change in Employer definition leading to more responsibilities : All the new labour codes have redefined the definition...

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Dr. Israel Inbaraj. F

currently is AVP & Group Head - HR Compliance (HR Compliance, Employee Relations and Industrial Relations) at Adani Group, Ahmedabad.

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