Contract Labour
Research Student: - Chhaya Ishwardas Chouliwar
Supervisor: - Dr. Vinod Khapne
ABSTRACT
Contract Labour-
Contract Labour is not new to India. In the early stages of
industrialization, the recruitment of labour was primarily
through intermediates due to lack of mobility, low status of
labourers, caste, religion and language. Theses obstacles were
overcome by appointing middlemen, also called contractors.
After independence, the Indian government formulated
several laws and appointed many committees to study the
socio – economic conditions of labour. But after globalization,
the contract labour system has been the growing form of
employment prevalent in almost all industries. Its preview has
shifted from agriculture and manufacturing sectors to service
sector. To become competitive in the global market,
companies use flexible labour force like contract labour. The
contract labour system generally refers to labour engaged
through an intermediary employer, the contractor (including
the sub – contractor) and the labourers. The labourers are
millions in number and generally belong to the unorganized
sector. They have little bargaining power, no social security
and are often engaged in hazardous occupations endangering
their health and safety. They are often denied minimum wages
and have little or no security of employment. This pattern of
employment has serious consequences in the service industry
as a whole, especially in the high performing power
generation industry.
KEYWORDS: Contract Labour, Industrialization,
unorganized sector, Form of Employment.
1. Introduction
Poverty reduction is the prime aim of any welfare state.
The need to reduce absolute poverty and the related
income gap pave the way for the economic development
in developed and developing countries. Economic
development can be achieved by ensuring proper
distribution of national income and inclusive growth.
Economic opportunity and through protection of
employment. India is a country with the largest labour
force in the world. In the last two decades most countries
including India, have liberalized their labour market and
amended some labour laws to attract greater investment.
This economic liberalization has turned the labour
market more flexible in favour of capital.
Types of Contract Labour
‘Contract Labour’ can be broadly dividend into two main
categories, one being on Job contracts and the other, on
Labour contract. Under the Job contract, employer allot
particular work or jobs to the contractor for a lump-sum
payment, wherein the material and labour would be of
the contractor. Once the job is complete, they will move
to the next contract. In this way, the production takes
place at a location other than the establishment which has
given the contract.
On the country, the ‘labour Contract’ is the one in
which the contractor supplies only the labourers to the
principal employers for a specific work when needed,
where the machine and the material would generally
belong to the principal employers. The payment for these
labourers is done by the contractor on the basis of the
terms of contract between the principal employer and
contractor. For the supply of labourers, the contractor
will get a remuneration or commission. But in both
forms, the contract labour is neither borne on pay roll,
muster roll or wages being paid directly by the principal
employer. The establishment giving the contracts have no
direct responsibility of the contract labour. (Ministry of
Labour, 1997). The remuneration of the contract
labourers appears to be different from what the regular
employee who are engaged in the similar jobs get.
2. Objectives of the Study
1. To study the demographic variables of the contract
labour.
2. To evaluate the economic conditions and primary
factors influence on determination of the contract basis
labour.
3. To assess the working conditions, welfare measure,
and social security measure provided to the contract
basis employees.
4. To study the role of contract basis employees in trade
union activities.
5. To suggest ways and means for the betterment of the
contract basis employees based upon the present study.
Limitation of the study
1. There will be no control over demographic of contract
basis employees.
2. There will be no control over economic status of contract
basis employees.
3. There will be no control over type of work carried out by
employees.
3) Research Methodology
Research methodology includes the research design and
the specific procedures used in conducting study. This
includes information regarding design, sample selection,
research instrument and its development, data collection
method and methods of data analysis.
Primary Source of Data Collection
In Survey methodology, primary data is collected by
using various methods, which included observation,
interview, questionnaire etc. by considering various
aspects such as cost, convenience, approach, time
and effectivity in this study, self – prepared
questionnaire were used as a primary source of data
collection.
Secondary Source of Data Collection
In proposed study, submitted thesis to various
universities, Journal Articles, Newspapers,
Magazine were used as a secondary data as well as
books from different libraries will also be used to
gather information regarding subject. In addition to
this, annual economic reports, census data will also
be considered in the study as a secondary source of
information.
Hypothesis of the Study
1. There is no significant difference between the age of the
contract basis employees and their level of income.
2. There is no significant difference between work types of
the contract basis employees and their level of income.
3. There is no significant difference between the literacy
level of the contract basis employees and their level of
income.
4. There is no significant difference between the working
hours per day of the contract basis employees and their
level of income.
5. There is no significant difference between the level of
satisfaction of contract basis employees in work place
facilities with respect to age, marital status, family type,
work type, income level, education and community.
Conclusion
“Contract Labour” refers to a system where workers are
hired through a third – party contractor instead of
directly by the company, often leading to potential
exploitation due to less job security and benefits.
However, legislation like the contract labour (Regulation
and Abolition) Act aims to protect theses workers by
setting standards for their working conditions and
ensuring fair treatment, though concerns remain
regarding full implementation and enforcement of these
regulation to prevent exploitation.
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