INTRODUCTION:

It has been observed that the contract

CONTRACT LABOUR &

THEIR ADVANTAGES

labour practices, which emerged as the

outcome of an imperfect labour market,
which

is

the

face

of

speedy

industrialization process and has come to

stay despite the concern shown by
different commissions, committees, plan
proposals appointed by the government
before and after independence. As an
institution of exploitation, though the
contract

labour

system

has

been

profusely criticized, yet it continues

because of some government policies
and

advantages

accrued

to

the

industrial units, the workers and the

and good work as the only basis of

employment security, induces workers to
produce more. Coupled with increased
efficiency and curtailment in the costs of
the fringe benefits, administrative and
accounting procedures are also said to be
advantages of contract labour system.
When the nature of work is intermittent
(or) the workload fluctuating then the
contract labour system is considered the
most suitable one. The management
enjoys

the

prerogatives

of

taking

decision without being bound by the

community.

labour legislations when the contract

ADVANTAGES TO - THE

labour practice is adopted.

INDUSTRIAL UNIT
The principal attraction of contracting
out work and getting labour supply
through contractors lies in its advantages
to the establishments. Economic gains of
low production and service, cost and
management prerogatives are the two

Problems

of

absenteeism,

labour

turnover, disputes etc may not occur

in the contract labour system. Also the
contract labour need not be considered
as bargaining unit,
_________________________________

major advantages of the system. It is

generally believed that contract labour
gives higher productivity, payment by
results,

closer

supervision

by

contractors, prompt penalty for staying

below the output norms and high waste,

S.JAILAPDEEN,MSW
, MPHIL(SW),PGDCA
____________________________

DRC / NCERT / SSA

____________________________

RESEARCH SCHOLOR

___________________

are supposedly accrued to the contract

thereby minimizing the problems of

workers.

industrial relations. All these contribute

ADVANTAGES TO - THE

to the contention that the continuance of

COMMUNITY:

contract system is highly beneficial to

It is further contended that the contract

the employers.

labour system has advantages for the

ADVANTAGES TO - THE

community. The system has labour

WORKERS:

market function bringing labour mobility

The contract labour system is advocated

and decreasing frictional unemployment.

as beneficial also to the workers in terms

It is also argued that the community

of scope for increased interplant labour

could withstand the tremors of change

mobility, scope for finding opportunities

from tradition to modernity.

to look after both agricultural pursuits

For Example The influx and

and spare time occupation, and scope for

adjustment of agriculture workers into

seeking double employment to earn

the industrial sector could be possible

more. It is also argued that contract

only because of the contract labour

labour

system.

system

offers

employment

These

arguments

though

opportunities to otherwise industrially

apparently are relevant to the community

non-employable agricultural workers.

during

These arguments

advanced by the

industrialization process; do not stand

employers in support of the continuance

valid in the day to day community

of the contract system are balanced out

context. Thus the continuance of the

by the disadvantages that the contract

contract

workers face in the system.

advantageous for the companies rather

Job insecurity, long hours of work,

than for the labour (or) the community.

unsteady wages, risky job conditions,

CONCLUSION:

exploitation by the contractors as well as

Thus the contract labour system helps

the principal employers in the absence of

the industriliasation in taking prilivged

the

dual

decision and also helps in benefiting the

standards in relation to regular workmen,

workers in all secured policies and

statutory

protections

and

the

labour

early

system

stages

is

of

more

norms. It provides employment to all the

uncivilized

people

found

in

the

uncivilized parts of India, where people

find only agriculture as the major work.
In India unemployment is found to be
one of the major problem in economic
growth and development of the country
and this problem is solved and can be
only by this contract labour system.

References:
1. Damodar Panda- ( 1999) Labour
in unorganized sector, ,
2. Gurucharan Patro, Purnochandra
Misra (1989), Management of
Contract

Labour

in

Indian

Industry, Page No -4-5

3. Indian

Journal

of

Industrial

Relations, Contract Workers in

India: Emerging Economic and
Social Issues Vol 40, No-2,
Oct 2004. Page No 242
259.