Contract labour set for creeping reforms
The government is all set to abandon radical revision of the law on contract labour and has opted for creeping reforms that will progress step by step.
For starters, the restriction on employment of contract workers is likely to be lifted for about a dozen activities and 100% export oriented units and units in special economic zone may also be allowed to outsources several activities without restrictions. The government proposes to amend the law on contract labour, and shift the responsibility for labour welfare from the principal employer to the contractor and to remove the distinction between core and non-core activities. The group of ministers on labour laws considering amendments to the Contract Labour (Abolition and Regulation) Act, 1970 which met here today under the chairmanship of Planning Commission deputy chairman KC Pant will meet again later this month to firm up the changes, when the labour ministry will present its draft amendments bill.
It has also been decided that the government would move an amendment bill to modify the 1970 Act rather than introduce a fresh bill called the Contract Labour (Regulation of Employment and Conditions of Service) Bill 2003. The amendment bill will bring about changes to the Section 10 of the Act.
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