REGULATORY UPDATE: MINISTRY OF LABOUR AND EMPLOYMENT-AMENDMENT TO CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970. The Ministry of Labour and Employment vide notification dated 29th September, 2017 has proposed to amend the Contract Labour (Regulation and Abolition) Act, 1970 by introducing the Contract Labour (Regulation and Abolition) Amendment Bill, 2017. Highlights:

  • The wage ceiling of Rs. 500 has been removed and thus, the definition of a workman now includes a person employed in a supervisory capacity who draws wages as notified by the Appropriate Government in the Official Gazette.
  • Provides for instances of obtaining temporary license.
  • Introduces the provision of furnishing of work order failing which the license of the contractor can be cancelled.
  • Encouraged the payment of wages through electronic mode and where the payment has to be in form of cash, the same has to be done in the presence of a representative of the principle employer.


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