4. Trends and Specific Cases

a. New or Expected Developments

Under current rules, a contract labour license is granted to a contractor-employer, subject to certain conditions. One of the conditions is that the wage rates payable to the workmen by the contractor-employer must not be less than the rates prescribed under the Minimum Wages Act, 1948 or rates not less than the rates so fixed by an agreement, settlement or award, not less than the rates so fixed. The draft Contract Labour (Regulation and Abolition) Central (Amendment) Rules, 2016, propose that Rule 25 (2) (iv) be amended to include an additional condition – the rates prescribed under the Minimum Wages Act, 1948 for such employment where applicable or the rates, if any, fixed by agreement, settlement or award or 10,000 rupees, whichever is higher.

These rules are not yet in force.