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The system of employing contract labour is prevalent in most industries for different jobs including skilled and semi-skilled. It is also prevalent in agricultural and allied operations and to some extent, in the services sector. A contract labour is a person who is hired, supervised, contracted and remunerated by a contractor, who, in turn, is compensated by the user enterprises. The concern to improve the working and living conditions of contract labour and the Supreme Court of India's observations in the case of Standard Vacuum Refinery Company Vs. their Workmen, resulted in the enactment of the Contract Labour (Regulation and Abolition ) Act, 1970.
The Central and State Governments are empowered to prohibit employment of contract labour in any activity in an establishment and also to grant an exemption to establishments/contractors in the case of an emergency, from the applicability of the provisions of the Act. The Central Government has issued 77 notifications prohibiting employment of contract labour in different categories of works in different fields up to 30 June 2010. the Government of India stands committed to the elimination of child labour in the country. The Constitution provides for protection of children from involvement in economic activities and avocations unsuited to their age. Directive Principles of State Policy in the Constitution strongly reiterate this commitment and this is also provided for in the Fundamental Rights. Realizing the multifaceted nature of this problem, the Government had embarked on a holistic and multi-pronged program to eliminate child labour from the country in a phased manner, beginning with children working in hazardous occupations and processes and progressively covering those working in other occupations also.