Of all the labour laws, the Contract Labour (Regulation & Abolition) Act, 1970 is probably the most breached one in practice (“Labour law babel,” (September 21). The use of ingenious methods like break in service or job rotation, underpayment by the contractors (in spite of witness-the-payment clause) and connivance of labour-law enforcing authorities in flouting the law are quite common. Even reputed companies employ such labour for jobs that are perpetual and perennial in nature.
Once the courts frowned on the malpractices of employers by applying the “piercing-the-veil” doctrine and forced them to absorb contract workers. Now, as the writer points out, the stance varies.
If the Act has lost its relevance, it is better to repeal it. On the other hand, since the contract labourers belongs to the unorganised class, the Act should be amended to suit the interests of both parties. A provision that compels employers to pay such labour at par with permanent employees, with the freedom to dispense with their services when no longer required is a way out.
Y G Chouksey, Pune
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