Introduction

The Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act) is aimed at regulating employment of contract labour in establishments and the abolition of contract labour in certain circumstances.

Recent Amendment

The Law and Judiciary Department, Government of Maharashtra vide its notification published in the Maharashtra Government Gazette on 5 January 2017 has announced that the CLRA Act will now be applicable to (i) every establishment in the State of Maharashtra in which 50 (fifty) or more workmen are employed or were employed on any day in the preceding 12 (twelve) months; (ii) every contractor in the State of Maharashtra who employs or who employed on any day in the preceding 12 (twelve) months 50 (fifty) or more workmen (Amendment).

Prior to the Amendment, the limit for applicability of the CLRA Act in the State of Maharashtra was limited to 20 (twenty) or more workmen.

Khaitan Comment

Due to the Amendment, establishments or contractors operating in the State of Maharashtra and who employ less than 50 (fifty) workmen as contract labour, will not be required to register / obtain a license under the CLRA Act in the State of Maharashtra. This change would be considered significant by establishments with small scale operations and those who rely on an outsourced workforce for multiple aspects of such operations.