CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

Objective:

To regulate the employmentof contract labour in certain establishments and to provide for its abolition in certain circumstances

Criterion for abolishing contract labour:

Based on whether workin an establishment is of perennial nature or not. Lawdiscourages contractlabour hiring in perennial nature ofwork

What the govt wants:

To change the criterion based on core and non-core activity in an establishment Allow contract labour in non-core activity and discourage contract labour in core activity in an establishment

Why business is opposing this:

Difficult to distinguish between core and non-core activity in changing business environment

The move will tie its hands in employing contract labour in core areas of work. Will impact automobile firms the most

How trade unions see it:

Contract labour should continue to be abolished in perennial nature of work, irrespective of whether it is in core or non-core area in an establishment

Contract labour should be made permanent if employed continuously for more than two years

Where govt and unions do not see eye-to-eye:

Former thinks business should get a free hand to hire contract workers for activities such as housekeeping, gardening, security, catering and maintenance of establishment

As these activities are carried out throughout the year, unions are making a case for permanency in these areas