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.
In a recent case, the Supreme Court directed the appropriate government to enact a law by June 2011. The case, Gainda Ram & Ors. V. MCD and Ors.[1], concerned the legal framework for regulating hawking in Delhi. The judgement lays out the background to this case by stating that the regulation of hawking in Delhi had been proceeding under directions issued by the Supreme Court in previous cases, and was being implemented by municipal authorities such as the New Delhi Municipal Corporation (NDMC). The NDMC and the MCD have also framed schemes to regulate hawkers as per a policy of the government framed in 2004. However, since these schemes were not laid before Parliament, the Court held that these schemes cannot be called ‘law’ or drafted under the authority of any law. The Court also stated that there is an urgent need to enact a legislation to regulate hawking, and the rights of street vendors. It referred to a Bill which had been framed by the government, and stated that since the government has already taken the first step in the legislative process by drafting a Bill, the legislative process should be completed. On the basis of this, and other reasons, it directed the government to enact a law by June 2011. This judgement raises three issues:
[1] Decided on October 8, 2010
