Compliances Related to Contract Labour under Occupational Safety, Health and Working Conditions (Uttar Pradesh) Rules, 2022

Compliances Related to Contract Labour under Occupational Safety, Health and Working Conditions (Uttar Pradesh) Rules, 2022

Background

The Occupational Safety, Health and Working Conditions Code, 2020 has been enacted by the Government of India with the objective of consolidating and rationalising multiple labour laws relating to occupational safety, health, and working conditions of workers employed in establishments. The Code subsumes various central labour legislations governing factories, contract labour, migrant workers, mines, docks, construction work, and other hazardous employments, with an aim to ensure uniformity, simplification, and enhanced ease of compliance.

Applicability

These rules as specified under Chapter XI (Part I) (Contract Labour) of the Code are applicable to:

  • Establishment covered under Occupational Safety, Health & Working Conditions (U.P.) Rules, 2022
  • Establishment / contractor employing 50 or more contract laborers in past 12 months for non-intermittent/casual work

Compliance Requirements under the Rules in Accordance with the Code

  1. Applicability of Contractor’s License (Section 45)

No contractor shall engage 50+ contract labour in any establishment or execute work through them, if 50+ were employed on any day in the past 12 months, except with a valid licence.

  1. Form XXI: Contractor’s License in U.P. (Section 48, Rule 71)

Application for Contractor’s License shall be made in Form XXI by Contractor electronically on official portal of Government of Uttar Pradesh. License shall be granted by authority in Form-XXIII. License shall be renewed post expiry.

  1. Principal employer to ensure requisite welfare facilities to contract workers in U.P. (Section 53)

Welfare facilities specified under section 23 and section 24 of the OSH Code shall be provided by the principal employer of the establishment to the contract labour who are employed in such establishment

  1. Responsibilities of contractor in U.P. (Section 55, Rule 79)

Contractor must pay wages as per Code of Wages, 2019. Wage details & register copy must be shared with the principal employer within 7 days. If electronic payment isn’t possible, wages must be paid in presence of principal employer’s representative with prior intimation to Labour Commissioner.

It is to be noted:

    • Each licence shall be responsible to follow all the Central Labour Codes and other labour laws and rules made by Central or State Government in this behalf, as applicable.
    • The licence shall be responsible to follow the terms and conditions under which the licence has been granted to him.
    • All contract labour shall be made member of EPFO and ESIC subject to applicability as under respective provisions of the Code on Social Security, 2020.
    • The contractor shall notify any change in the number of workers or conditions of work to the Licensing Authority, electronically.
    • If in any case, the contractor fails to follow the provisions of the Code and rules made thereunder or violates other labour laws, the Authority may cancel his licence and may forfeiture the security amount. The Authority may also direct the concerned Inspector-cum facilitator to take appropriate action against such contractor.
  1. Form XXVI: Intimation of Contract Work Order by Contractor in U.P. (Section 50, Rule 81)

 (1) Every contractor shall, within fifteen days of the receipt of a contract work order, intimate about the contract work order containing the details such as the name of the principal employer, address of the premises where work is being undertaken, date of commencement of the contract work, the number of contract labour employed under that work order, duration of work orders.

(2) The details of work order shall be sent by the contractor or his authorized representative.

(3) The intimation shall be sent electronically on the Portal of Commissioner of Labour or e-mail of the Commissioner of Labour of Labour or his representative as may be notified on the website of Commissioner of Labour.

  1. Experience Certificate of Contract Labour by Contractor in U.P. (Section 56, Rule 83)

Every concerned contractor shall issue on demand experience certificate in Form–XXVII to the contract labour on his letter head with his signature and seal adhering the key points like details of the period, work performed, experience gained in various fields as performed by such contract labour.

  1. Prohibition for employment of contract labour in U.P. (Section 57)

It is prohibited to employ contract labour, Except in following cases

(a) if such activity is ordinarily done through contractor; or

(b) the activities are such that they do not require full time workers

(c) any sudden increase of volume of work in the core activity in less time

If a question arises as to whether any activity of an establishment is a core activity or otherwise, the aggrieved party may make an application, to the Deputy Secretary, Government of U.P., Labour, Skill Development and Employment Department giving reasons along with supporting documents.

  1. Form- XXVIII for application of declaration of core activities in U.P. (Section 57(2), Rule 84)

(1) If a question arises, as to whether, any activity of an establishment is a core activity or otherwise, the aggrieved party may make an application in Form XXVIII to the State Govt directly or through the Labour Commissioner, U.P for decision.

(2) Application shall contain complete details of the activity in question and manufacturing processes of establishment.

(3) The such application shall also contain the justification for making such an application.

(4) The application shall be accompanied with such documents are deemed necessary by the applicant.

Penalty & Punishment

Where any principal employer of an establishment is employing contract labour through a contractor who is required to obtain a license under this Part, but he has not obtained such license, then, such employment shall be deemed to be in contravention of the provision of this Code.

General Penalty u/s 94: For contravention, the employer or the principal employer of the establishment, as the case may be, shall be liable to penalty which shall not be less than two lakhs rupees but which may extend up to three lakh rupees, and if the contravention is continued after the conviction, then, with further penalty which may extend to two thousand rupees for each day till such contravention continues.

Under Section 97: Contravention of any provision restricting or regulating the employment of contract workers shall be liable to penalty which shall not be less than fifty thousand rupees but which may extend to one lakh rupees.

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