In exercise of the powers conferred by section 31 of the Contract Labour Regulation and Abolition Act

## Report on Exemption Notification for Bhilai Steel Plant under the Contract Labour (Regulation and Abolition) Act, 1970 **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Labour and Employment, Government of India, exempting Bhilai Steel Plant (Steel Authority of India Limited) from certain provisions of a 1979 notification related to the employment of contract labour in specific works outlined in the Schedule to the said notification against serial numbers 1 to 3. This exemption is granted for a period of three years, subject to specific conditions aimed at protecting the interests of the workmen, ensuring fair wages and benefits, and providing preference in employment under changing contracts. The core purpose of this notification appears to be to allow for flexibility in contract labour arrangements at Bhilai Steel Plant while safeguarding worker rights and benefits in line with Coal India Limited standards. **2. Introduction:** This report aims to provide an informative overview and analysis of the Ministry of Labour and Employment's notification S.O. 3214(E), dated August 10, 2021, concerning the exemption of Bhilai Steel Plant from certain provisions of a previous notification related to contract labour. The analysis is based solely on the information provided in the notification text. **3. Policy Overview:** * **Type:** Amendment (Specifically, an exemption from a previous notification.) * **Original Policy Referenced:** Government of India, Ministry of Labour number S.O. 4076, dated the 15th December, 1979, published in the Gazette of India, PartII, section 3, subsection ii. * **Core Objective(s) (Inferred from Text):** * To temporarily exempt Bhilai Steel Plant from specific requirements concerning contract labour as outlined in the 1979 notification. * To ensure the protection of the interests of workmen engaged in the works specified in the Schedule to the 1979 notification against serial numbers 1 to 3. * To align wages and benefits of contract labour at Bhilai Steel Plant with the standards established by the High Powered Committee appointed by Coal India Limited. **4. Background and Rationale:** The notification text does not explicitly state the reason for this exemption. However, it can be inferred that the exemption likely aims to provide Bhilai Steel Plant with some degree of operational flexibility in managing contract labour within the specific works mentioned. The conditionality attached to the exemption (protecting worker interests, aligning with Coal India Limited standards) suggests a balance between operational needs and worker welfare. It's also possible that specific conditions or operational requirements at Bhilai Steel Plant necessitate a temporary deviation from the strict application of the 1979 notification. **5. Key Provisions / Changes:** This notification introduces the following key changes: * **Exemption:** Bhilai Steel Plant is exempt from the applicability of notification S.O. 4076, dated December 15, 1979, concerning the employment of contract labour in the works specified in the Schedule to the said notification against serial numbers 1 to 3. * **Duration:** The exemption is valid for three years from the date of publication (August 10, 2021). * **Conditions:** The exemption is conditional upon adherence to the following: * Protection of the interests of the workmen. * Payment of wages and other benefits as per the recommendations of the High Powered Committee appointed by Coal India Limited, and the rates notified by Coal India Limited from time to time. * Central Advisory Contract Labour Board oversight to ensure wage and benefit compliance. * Preference in employment for existing contract workmen when there is a change of contractor, subject to satisfactory performance. * Workmen get wages as determined by the High Powered Committee appointed by the Coal India Limited. * Contractor and Principal Employer (Bhilai Steel Plant) must ensure payment of wages and other benefits as per the Mines Act, 1952. * Contract workers shall be covered under the Payment of Gratuity Act, 1972. * Contract workers shall be paid bonus and leave with wages as per the provisions of the Mines Act, 1952. **6. Target Audience and Stakeholders:** * **Directly Affected:** Bhilai Steel Plant, Steel Authority of India Limited. * **Workers:** Contract Labour employed in the works specified against serial numbers 1 to 3 of the Schedule to notification S.O. 4076, dated December 15, 1979, at Bhilai Steel Plant. * **Contractors:** Companies providing contract labour services to Bhilai Steel Plant for the specified works. * **Central Advisory Contract Labour Board:** Responsible for oversight and inspection. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** * Bhilai Steel Plant management is responsible for ensuring compliance with the conditions of the exemption. * Contractors are responsible for paying wages and benefits as per the prescribed standards. * The Central Advisory Contract Labour Board is responsible for inspecting the establishment to ensure compliance. * **Timelines:** The exemption is valid for three years from August 10, 2021. High Powered Committee wages increases every six months. * **Procedures:** The Central Advisory Contract Labour Board will conduct inspections to ensure compliance with the wage and benefit provisions. When contracts change, preference should be given to existing workmen. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this notification is likely to: * Grant operational flexibility to Bhilai Steel Plant concerning contract labour management in the specified works. * Ensure that contract workers at Bhilai Steel Plant receive wages and benefits aligned with Coal India Limited standards, potentially improving their economic well-being. * Provide a degree of job security for existing contract workers when there is a change of contractor. * Ensure contract workers are covered under the Payment of Gratuity Act, 1972. **9. Conclusion:** The Ministry of Labour and Employment's notification S.O. 3214(E) provides a conditional exemption to Bhilai Steel Plant from certain provisions of a 1979 notification concerning contract labour. This exemption aims to balance operational flexibility for the plant with the protection of worker rights and the alignment of wage standards with those established by Coal India Limited. The notification is significant for Bhilai Steel Plant, its contract labour workforce, and contractors providing services to the plant, as it establishes specific conditions and obligations concerning wages, benefits, and employment preferences during the exemption period.

Key Entities Referenced