Contract Labor Act | Meaning and Definition

What is the Contract Labor Act?

The Contract Labor Act of 1970 was enacted to prevent contract laborers’ exploitation and improve their working conditions. The Act prohibits contract laborers in certain hazardous occupations and imposes health and safety standards on such occupations. 

It also requires contractors to provide contract laborers with certain fringe benefits, such as not fewer than two days off per week, transportation to and from the job site, and housing at or near the job site. 

In addition, the Act requires contractors to pay contract laborers not less than the prevailing wage for similar work in the area where the work is being performed. The Act establishes procedures for resolving disputes between contractors and contract laborers regarding wages, working conditions, or other matters arising under the Act. 

The Contract Labor Act 1970 does not apply to businesses with irregular or seasonal work. If a firm is in the area of “The Act,” such as “The Firm” and “The Contractor,” they must obtain registration for their establishment and license. 

Labor meaning:

Labor is the word used to describe the physical or mental effort required to do something. In the 16th century, labor began to be used as a synonym for work. 

So labor can be defined as either physical or mental work done to produce something. It can also be defined as work done to earn a living. 

When we talk about “the labor force,” we’re referring to people who are employed or looking for employment. The size of the labor force is an important economic indicator, as it affects things like gross domestic product (GDP) and unemployment rates.