Contract Labour
CLRA Prohibition Notifications and Their Impact
2025-06-29 · 7 min
Section 10 of the CLRA Act empowers governments to prohibit contract labour in specified processes. Recent notifications have impacted core operations in many industries.
How prohibitions work
After consultation with the Central / State Advisory Board, governments may notify processes where contract labour is banned.
Employer response
Either absorb workmen or transition them with statutory dues; legal challenges remain available.
Case law
Steel Authority of India v National Union Waterfront Workers reshaped the law on automatic absorption.
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