VBDL Ltd., (the Builder) is a company engaged in the business of construction of multi-storey flats in Mumbai. It started working on a project named as 'Sare Jahan Complex' in Panvel, Navi Mumbai. At the site, the builde

CS Professional · Labour Laws & Practice · PYQS · December 2022
VBDL Ltd., (the Builder) is a company engaged in the business of construction of multi-storey flats in Mumbai. It started working on a project named as 'Sare Jahan Complex' in Panvel, Navi Mumbai. At the site, the builder opened its office and employed two persons named as Sonali and Kamal, to book flats, receive money from the prospective buyers through cheques, and to do all other managerial, supervisory and administrative work. Besides Sonali and Kamal, one peon was also appointed for their office purposes. While Sonali was taking care of the in-office work, whereas Kamal was overseeing the field duty, like inspection of the work done by the labours, purchase of building raw materials etc. The builder engaged KCPL, a contractor company engaged in the construction work. The KCPL provided the labours at site, to do the civil work. One day, an Inspector came to site for checking, whether adequate safety measures are being followed on not. During his inspection, he observed that some labours have defective vision and some labours are deaf too. He prepared a detailed report and summoned to the contractor to give explanation. Amrish, who is a regular employee of KCPL was given the task of pulling the chain, operated through electricity, to lift the mixture of cement and concrete. One day, while he was doing this work, the chain broke and fell down on the land which caused a serious bodily injury to Amrish. Sonali's father Hari Ram is having a small piece of land in a village near by Panvel. Hari Ram thought to construct a dwelling house for his family. So he contacted a person named Ashutosh, who takes contracts for small house projects (not the multi-storey project) costing around 15-20 lakh rupees. Ashutosh agreed to construct the house for Hari Ram for a total cost of 15 lakh rupees including the building material, labour cost, sanitary and electrical fittings and flooring. Based on the above fact, answer the following questions: In the above case whether Amrish, can be treated as a contract labour? Quote the relevant provisions of the law.

Answer & Explanation:

In terms of section 2(1)(b) of the Contract Labour (Regulation and Abolition) Act, 1970, a workman shall be deemed to be employed as 'contract labour' in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer. 'Contract labour' can be distinguished from employees in terms of employment relationship with the principal establishment and the method of wage payment. A workman is deemed to be a contract labour when he/she is hired in connection with the work or contract for service of an establishment by or through a contractor. They are indirect employees. Contract labour is neither borne on pay roll or muster roll or wages paid directly to the employer. As per the above definition of 'contract labour', Amrish is a regular employee of the KCPL and hence, will not be treated as a 'contract labour'.

Topics: Contract Labour (Regulation and Abolition) Act, 1970

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