Contract Labour Act, 1970 not for units with less than 20 workmen: Dattatreya

New Delhi, Apr 28 (KNN) There is no proposal to bring into the ambit of the Contract Labour (Regulation & Abolition) Act, 1970 those establishments and contractors that employ less than twenty workmen, Parliament was informed. 

The micro, small and medium enterprises (MSMEs) mostly employ less than 20 workmen in their units.

In a reply in Rajya Sabha, Labour Minister Bandaru Dattatreya said, "The Central Government has proposed to amend Rule 25(2) (iv) of the Contract Labour (Regulation & Abolition) Central Rules, 1971 to ensure minimum monthly wage of Rs. 10,000 to contract workers of the country."

The proposed draft rules have been published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide Notification Number G.S.R. 368 (E), dated the 30th March, 2016, he added. 

The Contract Labour (Regulation & Abolition) Act, 1970 covers only those establishments and contractors that employ twenty or more workmen on any day of the preceding twelve months.

The number of contract workers engaged in the Central sphere is 1903170 up to 31.03.2015. The figure in respect of contract workers working in the State sphere is not centrally maintained, the Minister informed.