Bihar Government alters applicability threshold of Contract Labour (Regulation and Abolition) Act, 1970 in the State to provide new opportunities for Industrial investment post COVID-19 pandemic

With a view to provide new opportunities for industrial investment in the State of Bihar, the Governor has enforced the Contract Labour (Regulation and Abolition) (Bihar Amendment) Ordinance, 2020 (“Ordinance”) increasing the applicability threshold of the Contract Labour (Regulation and Abolition) Act, 1970 in the State to 50 or more workmen as against the earlier 20.

Contract Labour (Regulation and Abolition) Act, 1970 Contract Labour (Regulation and Abolition)  (Bihar Amendment) Ordinance, 2020 Implication
Section 1(4)

It applies—

(a) To every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour;

(b) to every contractor who employees or who employed on any day of the preceding twelve months twenty or more workmen:

Provided that the appropriate Government may, after giving not less than two months’ notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or contractor employing such number of workmen less than twenty as may be specified in the notification.

Section 1(4)

It applies—

(a) To every establishment in which fifty twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour;

(b) to every contractor who employees or who employed on any day of the preceding twelve months fifty twenty or more workmen:

Provided that the appropriate Government may, after giving not less than two months’ notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or contractor employing such number of workmen less than fifty twenty as may be specified in the notification.

The Contract Labour (Regulation and Abolition) Act, 1970 in Bihar will now apply to establishments and contractors that employ fifty or more workmen as opposed to the earlier threshold of twenty . The Central Contract Labour (Regulation and Abolition) Act, 1970 remains to have a threshold of twenty workmen while different states like West Bengal, Rajasthan and now Bihar have altered the threshold based on the industrial and economic activities within the State.

This Ordinance has been passed by the Governor to provide new opportunities for Industrial investment in the State and promote industrial and economic activities in the State which has deteriorated in light of the COVID-19 pandemic.

 

 

Source: Governor of Bihar

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