What is the full form of CLRA?

CLRA full form is the Contract Labour (Regulation & Abolition) Act, 1970 and applies to all contract labourers across all states in India.

Who is considered a contract labourer under the CLRA Act?

Contract labour definition under the Contract Labour Act 1970 states that ” any individual who is hired by a contractor for short-term to perform different tasks at the workplace of principal employer for a fixed wage.

What is the difference between contract labour and regular employees?

Contract labour is usually hired by contractors to work for an employer for a fixed term with fixed wages. The responsibility of wage disbursal and maintaining compliance with labour laws lies with the contractor. On the other hand, a permanent employee is hired by a company directly on a long-term commitment with benefits like medical insurance, EPF, increment, etc.

What is CLRA compliance in HR?

CLRA compliance in HR means that companies that avail of the services of contract labour must comply with regulations and laws as per contract labour regulation and abolition act. If any compliance issues arise during audits, companies must fix them on priority to prevent legal issues and penalties.

What is the purpose of the CLRA Act, 1970?

The purpose of the Contract Labour Act 1970 is to regulate contract labour employment to safeguard the rights and benefits of individuals working as a contract employee under a principal employer or a contractor.