A change in the Contract Labour (Regulation and Abolition) Act, 1970 may be in the pipeline. According to news reports, the government may amend the 1970 Act to safeguard the interest of contract workers. The proposal is to bring parity between permanent and contractual workers in wages and other benefits. The Contract Labour Act, 1970 regulates the employment of contract labour in establishments which employ 20 or more workmen. It excludes any establishment whose work is intermittent or casual in nature. The appropriate government may require establishments to provide canteens, rest rooms and first aid facilities to contract labourers. The contractor shall be responsible for payment of wages to each worker employed by him. There are penalties listed for contravening the Act. According to the Report of the National Commission on Enterprises in the Unorganised Sector (NCEUS), more than 90% of the workforce is part of the unorganised sector. Contract labour is found in certain activities in the unorganized sector such as in stone quarrying, beedi rolling, rice shelling and brick kiln. The Commission recommended some measures to protect the workers in the unorganized sector such as ensuring minimum conditions of work, minimum level of social security and improved credit flow to the non-agricultural sector. The Report of the Working Group on “Labour Laws and other Regulations” for the 12th Five Year Plan, also proposed that the 1970 Act should be amended. The amendment should ensure that in case of contract labour performing work similar to that performed by permanent workers, they should be entitled to the same wage rates, holidays, hours of work and social security provisions. Furthermore, whenever a contract worker is engaged through a contractor, the contract agreement between the employer and the contractor should clearly indicate the wages and other benefits to be paid by the contractor. However, other experts such as Bibek Debroy, Kaushik Basu and Rajeev Dehejia have recommended broad reforms in India’s labour laws to allow for more flexibility in the labour market. According to them, these laws protect only a small portion of workers in the organized sector.
There are a little over 4000 MLAs across all states in India. For the citizen, a law passed by his state legislature is as relevant and important as one passed by Parliament. And MLAs also have no research support available to them to understand and reflect on policy issues before voting for them in the state assembly. To make matters worse, the sittings in many state assemblies are abysmally low as can be seen from this graph showing some states. 
For a while now, several MPs have been urging PRS to initiate some work with MLAs. We started a Policy Guide series some months ago -- essentially a 2-page note on policy issues of contemporary relevance that would be useful for MLAs. We started sending these out to MLAs in several states, and some MLAs called PRS back for more information and research. As a way to increase the engagement, PRS decided to hold a workshop for MLAs. For this, we partnered with Indian School of Business, Hyderabad, and held our first workshop for MLAs from Jan 3-6, 2011. In the first edition of the workshop, we had 44 MLAs participating from a dozen states across India. The response was overwhelmingly positive (see short videos of MLA feedback here), with requests from MLAs to hold more such workshops for other MLAs as well. Several also wanted longer duration workshops on important policy issues. We see this as a small beginning for a sustained engagement with our MLAs.
