In a Notification dated 26th November, 2020, the Labour and Employment Department, Gujarat (“Department”) has issued draft Contract Labour (Regulation and Abolition) (Gujarat) (Amendment) Rules, 2020 (“Draft Rules”) to further amend the Contract Labour (Regulation and Abolition) Gujarat Rules (“Principal Rules”) which is issued under the Contract Labour (Regulation and Abolition) Act, 1970.
The Department has further invited comments and suggestions before a period of 30 days from when the Draft Rules are published in the Official Gazette.
For a detailed read of the key takeaways that the Draft Rules propose, please refer to the table below:
| Principal Rules
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Draft Rules | Implication | |||||||||||||||||||||||||||||||||||||||||||||||
| Rule 24: Security:
Before a license is issued an amount calculated at the rate of Rs.270 for each of the workman to be employed as contract labour in respect of which the application of license has been made, shall be deposited by the contractor for due performance of the conditions of the license and compliance with provisions of the Act and the Rules made thereunder. |
Rule 24: Security:
Before a license is issued an amount calculated at the rate of Rs.540 for each of the workman to be employed as contract labour in respect of which the application of license has been made, shall be deposited by the contractor for due performance of the conditions of the license and compliance with provisions of the Act and the Rules made thereunder. |
Under the Principal Rules, the contractor has to deposit a security amount before a license is issued at amount calculated at the rate of Rs.270 for each workman employed as contract labour. The security amount is deposited for due performance of the conditions of the license and compliance with the provisions of the Act and Rules.
Now, through the proposed amendment, the rate at which the security amount will be calculated is proposed to be enhanced / increased to Rs. 540 as against the present position of Rs. 270.
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| Rule 26: Fees-
(1) The fees to be paid for the grant of a certificate of registration under Section 7 shall be as specified below:
If the number of workmen proposed to be employed on contract on any day-
(a) is 20 – Rs. 20
(b) exceeds 20 but does not exceed 50 – Rs. 50
(c) exceeds 50 but does not exceed 100 – Rs. 100
(d) exceeds 100 but does not exceed 200- Rs. 200
(e) exceeds 200 but does not exceed 400 – Rs. 400
(f) exceeds 400 – Rs. 500
(2) The fees to be paid for the grant of a license under Section 12 shall be specified as below:
If the number of workmen employed by the contractor any day –
(a) is 20 – Rs. 5
(b) exceeds 20 but does not exceed 50 – Rs. 12.50
(c) exceeds 50 but does not exceed 100 – Rs. 25
(d) exceeds 100 but does not exceed 200- Rs. 50
(e) exceeds 200 but does not exceed 400 – Rs. 100
(f) exceeds 400 – Rs. 125
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Rule 26: Fees-
(1) The fees to be paid for the grant of certificate of registration under section 7 shall be as specified below, namely
If the number of workmen proposed to be employed on contract on any day,-
a. 50 or more but does not exceed 100. – Rs. 1800
b. exceeds 100 but does not exceed 200 – Rs. 4800/-
c. exceeds 200 but does not exceed 400 – Rs. 7200/-
d. exceeds 400 but does not exceed 800- Rs. 9000.
(e) exceeds 800- Rs. 12000/-
(2) The fees to be paid for the grant of a license under section 12 shall be as specified below, namely
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Through the amendment, the Draft Rules propose to enhance/ increase the fees to be paid for:
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| Rule 27: Validity of license:
Every license granted under Rule 25 or renewed under Rule 29 shall remain in force for 12 months from the date it is granted or renewed
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Rule 27: Validity of license:
Every license granted under Rule 25 shall remain in force for the period mentioned in Form V. |
The validity period of license obtained by every contractor under Rule 21 of the Principal Rules is presently a period of 12 months.
The Draft Rules propose to omit the specific validity period of the license and propose that the applicant (contractor) while submitting his application for license will submit a certificate in Form V wherein the principal employer has to mention that the contractor has been appointed by him in relation to his establishment.
With the Draft Rules getting notified, it will be the responsibility of the principal employer to mention in his certificate (in form V) the specific period for which he intends to/ engages the contractor.
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| Rule 29: Application of renewal of license-
(1) Every contractor shall apply to the licensing officer for renewal of license.
(2) Every such application shall be in Form VII in triplicate and shall be made not less than 30 days before the date on which the license expires and if the application is so made the license shall be deemed to have been renewed until such date when the renewed license is issued.
(3) The fees charged for renewal of license shall be the same as for the grant thereof.
(…) |
Omitted | The compliance of the contractor to renew his license has been proposed to be done away with | |||||||||||||||||||||||||||||||||||||||||||||||
| Rule 30: Issue of duplicate certificate or registration or license:
Where a certificate of registration or license granted or renewed under the preceding rules has been lost, defaced or accidentally destroyed a duplicate may be granted on payment of fees of Rs.5.
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Omitted | The provision of issuance of duplicate license/ certificate of registration to the contractor has been omitted. | |||||||||||||||||||||||||||||||||||||||||||||||
| Rule 32: Grant of temporary certificate of registration or license:
(1) Where conditions arise in an establishment requiring the employment of contract labour immediately and such employment is estimated to last not more than 15 days the Principal Employer of the establishment or the contractor as the case may be may apply for a temporary certificate or registration or license to the registering officer or the licensing officer as the case may be having jurisdiction over the area in which the establishment is situated.
(2) The application of such temporary certificate of registration or license shall be made in triplicate in Form VIII and X respectively and shall be accompanied by a treasury recipet drawing in favour of the appropriate registering or licensing officer as the case may be showing the payment of appropriate fees and in the case of license the appropriate amount of security also.
(…) |
Omitted | Presently, if the Principal Employer requires contract labour to be engaged immediately in his establishment, the principal employer or the contractor can make an application for a temporary certificate of registration / license.
The present amendment proposes to omit the provision of granting temporary license/ registration |
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Source: Govt of Gujarat
