Question 1

Who needs to register under the Contract Labour Act?

Accepted Answer

The principal employer (the company engaging contract workers) must register their establishment if they employ 20 or more contract workers on any day. The contractor (the agency supplying workers) must obtain a license before deploying workers. Both registrations are required independently — the principal employer's registration does not substitute for the contractor's license.

Question 2

What is the difference between a principal employer and a contractor under the Contract Labour Act?

Accepted Answer

The principal employer is the company that owns the establishment where work is performed and engages contractors to supply labour. The contractor is the person who undertakes to produce a specific result or supplies workers for another establishment. The principal employer is ultimately responsible for ensuring contract workers receive statutory benefits even if the contractor defaults.

Question 3

What are the welfare facilities that must be provided to contract workers?

Accepted Answer

The Contract Labour Act requires the contractor to provide: canteen facilities if 100 or more workers are employed; restrooms and rest facilities; first aid boxes; safe drinking water; latrines and urinals; and washing facilities. If the contractor fails to provide these, the principal employer is liable to provide and recover the cost from the contractor.

Question 4

What is the penalty for engaging contract workers without a license?

Accepted Answer

A contractor who deploys workers without a license is liable to imprisonment up to 3 months or a fine up to ₹1,000 or both under the Contract Labour Act. The principal employer who allows unlicensed contractors to work is also liable. Repeat offences attract higher penalties.

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