In order to avoid contract labor exploitation, enhance working conditions, and control the use of contract labor in certain companies, the Contract Labor Act of 1970 was established. When a worker is hired through a contractor’s link, he is regarded as contract labor. All businesses that employ 20 or more workers, or who were hired as contract labor even for a single day throughout the 12 months, are subject to the Act. Advisory boards at the federal and state levels ensure that the Contract Labor Act is regarded as effective.
Where does it not apply?
Firms with seasonal or irregular work are exempt from the Contract Labor Act of 1970. An employer or contractor must apply for establishment registration and a license if their business is in the area covered by “The Act.” In certain situations, temporary registrations are also offered under the Contract Labor Act.
