Lok Sabha Question No. 4122 (UNSTARRED), answered on 2017-03-27
Subject: Employment on Contractual Basis
Ministry: LABOUR AND EMPLOYMENT
Asked by: NANDI YELLAIAH, SANTOSH AHLAWAT

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

UNSTARRED QUESTION NO. 4122 TO BE ANSWERED ON 27.03.2017

## EMPLOYMENT ON CONTRACTUAL BASIS

4122. SHRI NANDI YELLAIAH: SHRIMATI SANTOSH AHLAWAT:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether  organised  sector  enterprises/employers  are  increasingly  hiring workers on contractual terms and if so, the details thereof along with the Government's viewpoint on engaging workers on contractual basis;
- (b)the details of minimum wages paid to the contractual workers including the steps taken by the Government to provide 'equal pay for equal work' to such contract and casual workers on the pattern of regular ones;
- (c)the mechanism put in place to ensure payment of minimum wages to the contract and casual workers engaged through the labour contractors; and
- (d)whether the Government has formulated any policy for safeguarding the interest  of  contractual/casual  workers  in  terms  of  wages  and  other service  conditions  and  also  with  regard  to  social  security  schemes including regularisation and improvement of working conditions and if so, the details thereof?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

(a): The number of contract workers engaged on the basis of license issued  under  Contract  Labour  (Regulation  &  Abolition)  Act,  1970  in  the Central Sphere during the last 3 years is given below:

| Year    |   No. of Contract Labour |
|---------|--------------------------|
| 2013-14 |                  1967747 |
| 2014-15 |                  1903170 |
| 2015-16 |                  2092673 |

The number of casual workers working in the Central Government and the establishments thereunder is not centrally maintained. They are engaged by the establishments based on their individual requirements.

(b): Contract  and  Casual  workers  have  the  protection  of  minimum wages fixed under the Minimum Wages Act, 1948. For 'equal pay for equal work', the provision exists under  Rule  25(2)(v)(a) of  Contract  Labour (Regulation  &  Abolition)  Act,  1970.  It  stipulates  that  the  contract  workers performing the same or similar kind of work as the regular employee of the establishment the wage rates, holidays, hours of work and other conditions of  service  of  the  contract  workers  will  be  the  same  as  applicable  to  the regular employee of the establishment performing the same or similar kind of work.  Whenever  any  case  comes,  Deputy  Chief  Labour  Commissioner (Central) is an authority under Rule (2)(v)(a) to decide the matter.

As  regards  the  casual  workers,  in  places  where  the  nature  of work entrusted to the casual workers and regular employees is the same, the casual workers is to be paid at the rate of 1/30 th  of the pay at the minimum of the relevant pay scale plus dearness allowance for work of 8 hours a day. In cases where the work done by a casual worker is different from the work done  by  a  regular  employee,  the  casual  worker  is  to  be  paid  only  the minimum wages notified by the Central Government or the State Government/Union Territory Administration, whichever is higher, as per the Minimum  Wages  Act,  1948.  However,  if  a  Department  was  already  paying daily  wages  at  a  higher  rate  as  on  7 th   June,  1988,  the  practice  could  be continued with the approval of its Financial Advisor.

(c) & (d): Strict  monitoring  of  payment  is  done  by  conducting  regular inspections and whenever there is a delay or non-payment of wages, claim cases are filed before the respective Regional Labour Commissioner (Central) who is an authority under the Act to decide the claims.

Though  there  is  no  social  security  scheme  as  such  to  ensure regularisation of workers working on contract or casual basis, the workers avail social security and other benefits under the Employees' Compensation Act (1923), the Industrial Dispute Act (1947), the Employees' State Insurance Act (1948), the Minimum Wages Act (1948),  The Provident Funds Act (1925), the Employees Provident Fund and Miscellaneous Provisions Act (1952), the Maternity Benefit Act (1961), the Contract Labour Act (1970), the Payment of Gratuity Act (1972), etc.

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