New Proposed Amendment to Current Contract Labor Law

Generally, contracts are legally enforceable instruments of state which emphasize the terms and conditions for hiring labor or services. They protect and promote the rights of the contracting parties both employer and employee.

According to the proposals and the amendments proposed in the Indian labor law 1970 there are significant elements that will overhaul the nature and the basic premise of the contractual and other remunerations for the various forms of labor that set the tone for the revival and the reset of labor law norms and standards.

Fundamental Proposals to the Amendment of the Labor Law

Ordinary workers as indentured workers

Ensuring of social security benefits to the workers

Contractual labor to be remunerated at fixed sums of minimum wage

Futures contract concluded between the employer and the contract worker will be stated in the contract.

Jurisdiction to amend the labor law whether its state or union government responsibility.

Significant Insights and Loopholes in Contract Labor Law

Whereas India’s economic and social welfare programs have seen some advancement over recent times according to some private institutes study contract workers share of employment stands at 55% of employment while its 45% in the private sector. But even with these statistics contract workers still earn significantly less in terms of standard minimum wages. Contract workers are paid for much less than the permanent on roll workers. Although companies benefit from contract workers they generally facilitate the company goals while they can be terminated from service any time in the future.

In the present dispensation of the current labor law, contracts are not fully discussed, stipulated or outlined for the 80 million plus contract workers.

Proposals and Imperatives for the Current Contract Labor Law

Given a spate of labor unrest and disturbances in a number of industries most prominently in some state enterprises and firms, the current labor law act 1970 guarantees and regulates the status of contract labor to place on an equal pedestal with permanent workers. These values like a decent employment terms and conditions, equal opportunity, minimum wages for the contract workers, social security and the some protection for the constitutional rights of the workers. Though the union government and the state governments have created labor laws and reforms that need proper harmony for effective implementation. By distinguishing organized and unorganized labor, the labor laws still maintain strict codes of proper employer-employee relations and accountability through records.

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