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Contract Labour (Regulation and Abolition) Act 1970 and Labour Market Flexibility: An Exploratory Assessment of Contract Labour use in India’s Formal Manufacturing

dc.contributor.authorDeb Kusum Das
dc.contributor.authorHomagni Choudhury
dc.contributor.authorJaivir Singh
dc.description.abstractOne particularly significant piece of labour legislation in India is the Contract Labour (Regulation and Abolition) Act, 1970 (CLA,1970), which regulates labour hired by firms through the offices of a labour contractor - such labour being referred to as ‘contract’ labour in India. This paper seeks to examine this Act and its implication for manufacturing employment in India. While empirical evidence seems to indicate the presence of large number of ‘contract’ workers in the Indian manufacturing sector across a spectrum of industries, this increasing contractualisation of the workforce has not been typically discussed as a pointed labour regulation issue. It has been widely argued that Indian labour law imposes institutional rigidities inhibiting employment expansion; but note needs to be taken of a ruling by the Supreme Court in 2001 which interpreted the CLA, 1970 in the case of Steel Authority of India v. National Union Water-Front Workers. This judicial interpretation has led to increased flexibility in the Indian labour market enabling firms to employ ‘contract’ workers widely, often employing them in jobs where they work alongside permanent workers. Against this backdrop, we undertake a preliminary empirical exercise in an attempt to document the increase in engagement of ‘contract’ workers and to dissect the data to see patterns in the use of ‘contract’ workers in formal manufacturing. These empirical patterns help us generate hypotheses for further work on the normative consequences of large scale use of ‘contract’ labour – the use of ‘contract’ workers no doubt brings in flexibility in labour usage and can be judged as a beneficial development for employers, however issues of investment in skills remains a hindrance in enhancing labour as well as overall welfare.
dc.publisherIndian Council for Research on International Economic Relations
dc.titleContract Labour (Regulation and Abolition) Act 1970 and Labour Market Flexibility: An Exploratory Assessment of Contract Labour use in India’s Formal Manufacturing
dc.typeWorking Papers
dc.subject.expertDevelopment Challenges
dc.subject.expertAsian Development Bank
dc.subject.expertDevelopment Management
dc.subject.expertSkills Development
dc.subject.expertPerformance Evaluation
dc.subject.expertEvaluation Methods
dc.subject.expertStaff Development
dc.subject.expertJob Evaluation
dc.subject.expertPerformance Evaluation
dc.subject.expertProgram Evaluation
dc.subject.expertThe Development Agenda
dc.subject.expertStaff Development
dc.subject.expertSkills Development
dc.subject.expertAsian Development Bank
dc.subject.expertResults-Based Monitoring And Evaluation
dc.subject.expertProject Evaluation & Review Technique
dc.subject.expertProject Evaluation
dc.subject.expertProgram Evaluation
dc.subject.expertPerformance Evaluation
dc.subject.expertOperations Evaluation
dc.subject.expertEvaluation Methods
dc.subject.adbEconomic development
dc.subject.adbStandard of living
dc.subject.adbTrade development
dc.subject.adbPerformance appraisal
dc.subject.adbNeeds assessment
dc.subject.adbInput output analysis
dc.subject.adbPerformance appraisal
dc.subject.adbProject failure
dc.subject.adbProject impact
dc.subject.adbProject appraisal
dc.subject.adbCareer development
dc.subject.adbVocational training
dc.subject.adbContract Labor
dc.subject.naturalLabor income
dc.subject.naturalLabor policy
dc.subject.naturalManpower policy
dc.subject.naturalCareer development
dc.subject.naturalJob analysis
dc.subject.naturalParticipative management
dc.subject.naturalGrievance procedures
dc.subject.naturalVocational guidance
dc.subject.naturalRural manpower policy
dc.subject.naturalCareer development
dc.subject.naturalApplications for positions
dc.subject.naturalAffirmative action programs
dc.subject.naturalLabor turnover
dc.subject.naturalCumulative effects assessment
dc.subject.naturalParticipatory monitoring and evaluation
dc.title.seriesICRIER Working Papers
dc.title.volumeNo. 300
dc.contributor.imprintIndian Council for Research on International Economic Relations
oar.adminregionSouth Asia Region
oar.authorDas, Deb Kusum
oar.authorChoudhury, Homagni
oar.authorSingh, Jaivir

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