Haryana Rises the employee Limit to 50 or more to get covered by CLRA

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Haryana Government has notified Contract Labour (Regulation and Abolition) Amendment Act on 17 October 2017. This Amended Act facilitates arrangement and use of contract labour for medium and small industries in a proper way. The Amendment Act provides that Contract Labour (Abolition and Regulation) Act, 1970 (“Principal Act”) in Haryana shall be applicable on every establishment employing 50 or more workmen on any day of the preceding twelve months. Before this amendment, the threshold for applicability was 20 workmen. Similarly, Principal Act shall apply to every contractor who employs or who employed on any day of the preceding twelve months 50 or more workmen, up from the existing threshold of 20 or more workmen.

It was observed that the contractors commonly misuse the provisions of the Act by paying lesser wages to the employee than agreed upon, forcing into employment that is harmful to the physical or mental health of the employee etc. So, with a view to ending the exploitation at the hands of the contractors, it was proposed to add a new proviso to Section 7. This new proviso empowers the Government to impose additional conditions as may be felt necessary at the time of issuing the registration certificate for the proper administration of the Act.

The changes brought by the Amendment become effective from 17th October 2017 and the changes are tabulated below-

Section Provisions before Amendment Provisions after Amendment
Section 1(4)(a) The CLRA Act applies to every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour. The CLRA Act applies to every establishment in which fifty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.
Section 1(4)(b) The CLRA Act applies to every contractor who employees or who employed twenty or more workmen on any day of the preceding twelve months. The CLRA Act applies to every contractor who employees or who employed fifty or more workmen on any day of the preceding twelve months.
Section 7(1) Proviso Registering officer may entertain any such application for registration after expiry of the period if the registering officer is satisfied that the applicant was prevented from making the application in time. A new proviso is inserted to the previous proviso. So, now the said Section to be read as the following-

 

Registering officer may entertain any such application for registration after expiry of the period if the registering officer is satisfied that the applicant was prevented from making the application in time:

 

Provided further that the appropriate Government may by notification in the Official Gazette, impose further necessary conditions, at the time of registration of an establishment or class of establishments for the proper administration of the Act and for prevention of misuse of employment of contract labour.

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