Effect of non-registration
The registration is mandatory for any establishment or factory. Otherwise, there can be a severe effect of non-registration.
The most significant provision in the Act is this. Because it empowers the appropriate Government for prohibiting the employment of contract labour in any process. Or, issuing a notification in the Official Gazette for operation or other work in any establishment. Thus, the following are the requiring steps to take place before the issuance of such a notification:
Thus the appropriate Government shall consult the Central Board or State Board as the case may be.
Also, the appropriate Government shall have regard to benefits provided for the contract labour and the conditions of work in that establishment. And other relevant factors such as:
Whether or not carried on in the establishment- the process, operation or other work incidental to, or necessary for the trade, industry, manufacture business, or occupation.
Whether or not through regular workmen it is done ordinarily. In that particular establishment similar thereto;
Also, considering whether or not to employ a sufficient to a considerable number of full-time workmen.
But where the government fails to disclose the basis for refusing to abolish contract labour, it amounts to non-application of mind to the requirements of Section 10 and the court can order abolition of contract labour
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