November 22, 2001

        The Government is considering changes in the Contract Labour (Regulation & Abolition) Act, 1970. Stating this in a written reply in the Rajya Sabha today, the Minister of State for Labour and Employment Shri Muni Lall said that this is being done as a follow up action on the announcement made in this regard by the Finance Minister in his Budget speech in February this year.

        Replying to queries by some Members , the Labour Minister Shri Sharad Yadav said that the matter is under consideration of the Group of Ministers on Labour. He said as such no assurance can be given at this stage that the Government will not change the provision in the Contract Labour Act which specifies that no temporary hands could be appointed for permanent jobs. He said that the Supreme Court has recently ruled that workers (contract workers) would not be automatically absorbed as regular employees.