At the group of ministers (GoM) meeting on Monday, labour minister Satyanaraian Jatiya stalled the finalisation of the Contract Labour Bill, 2000.

According to official sources, he is opposed to the new legislation because the spread of contract labour is opposed by trade unions, and the labour minister has to take into account their views.

The GoM on labour is headed by Planning Commission deputy chairman KC Pant and includes finance minister Yashwant Sinha, minister of heavy industries and public enterprises Manohar Joshi, consumer affairs and public distribution minister Shanta Kumar and Jatiya.

The new legislation on contract labour is aimed at making contract labour more widespread. It would also do away with the clause, which exists in the present Act, that insists on the abolition of contract labour.

The proposed Bill would apply to the contractors who employ 20 or more people for 12 months. The government will prescribe the number of hours, the rest day, and the amount of payment. The wages given to contract workers cannot be less than the salary of the regular employees. Over-time for contract workers has been stipulated at double of the wages.

In the event of retrenchment, the contract workers would be entitled to wages of 26 days. The new Bill also has provisions for provident fund and gratuity.

The contractor is supposed to give away the wages to workers in the presence of a representative of the principal employer. The ultimate responsibility of wage-payment, however, would lie with the principal employer: if the contractor does not pay for any reason, the principal employer will have to pay the wages.

As per the proposed legislation, contract labour could be employed for some urgent work or an emergency that could not be foreseen earlier.

The new Bill has laid down the powers and duties of the inspectors who would regulate the employment of contract labour.

The Bill provides for the Central Advisory Board (CAB) and the State Advisory Boards (SABs). All the boards would be headed by chairmen, to be appointed by Central and state governments. On the CAB, the chief labour commissioner would be the ex-officio member; there would be two more representatives of the government. Apart from these members, the government would also appoint three members representing the interests of workers. Industry and contractors would be represented by three members at the CAB.SABs would be a replica of the CAB, with state labour commissioner ex-officio member.