A Study on Effects of Contract Labour Act with Reference to Sowjan Construction Company Private Limited at Chennai City

The Contract Labour (Regulation and Abolition) Act, 1970 was enacted to regulate the employment of contract labour in industries and prevent exploitation by ensuring better working conditions, fair wages, and social security. The Act applies to establishments and contractors employing 20 or more contract workers and mandates registration, licensing, and welfare provisions for such employment. This study explores the implementation and effectiveness of the Contract Labour Act in various industries, with a special focus on the building construction sector. It analyzes awareness levels, compliance issues, and challenges faced by contract workers, including job insecurity, delayed wages, lack of social benefits, and inadequate safety measures. This study examines the awareness, implementation, and effectiveness of the Contract Labour Act in the construction sector, with a focus on compliance by construction companies. The findings indicate that while the Act provides legal protection, enforcement remains weak due to lack of awareness, irregular inspections, and contractor malpractice. Many contract workers are unaware of their rights, and only a few construction companies fully comply with the Act’s provisions.