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Contract Labour Act in India a Pragmatic View

By Rajeev, Meenakshi

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Book Id: WPLBN0003761661
Format Type: PDF eBook :
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Reproduction Date: 2015

Title: Contract Labour Act in India a Pragmatic View  
Author: Rajeev, Meenakshi
Language: English
Subject: Programming, Law Books, Labour & Employment Law
Collections: Technical Books Center
Publication Date:
Publisher: Indian Institute of Management Bangalore


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Rajeev, M. (2009). Contract Labour Act in India a Pragmatic View. Retrieved from

Description: Labour management is one of the most crucial task of an entrepreneur. In order to surpass the stringent labour regulations, the industry sector in India is largely resorting t o contract labourers, who are governed by the “Contract Labour Regulation and Abolition Act of 1970”. A primary survey carried out in Karnataka one of the most industrially developed state in India, reveals that many of the stipulations made in the Act to safeguard contract labourer are not followed in practice. It has also been felt by the workers that collusive agreement between the labour inspector, the protector of law, and the principal employer i.e., the manger or the entrepreneur (or the contractor) has aided the violation of law. This paper discusses some of the survey findings and considers a game theoretic model to show why it is economically optimal for an enterprenuer and a labour inspector to collude. It also examines whether any provision of reward for the labour inspector would help to protect the law. Though the paper is based on Indian experience, it has relevance for a number of economies in the Asian region.

Table of Contents
TOC: Introduction - Contract Labour Regulation and Abolition Act, 1970 - Implementation of the Contract Labour Act: A Survey Based Analysis - Collusion as an Optimal Strategy - An Alternative Penalty-Reward Scheme - Conclusion - References - End Notes.


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