The Object of the act is to regulate the employment of Contract Workmen in certain establishments and to provide for its abolition in cretain circumstances andother matters connected therewith. The act is applicable to establishment engaging 20 or more workmen as Contract Labour and in some state it is 5 or more,10 or more, 50 or more and Principal Employer should register and obtain registraton certificate and amend whenever there are changes in contracto, head count, period of engagement, deletion of contractors. The Act appoints Registering Officer, Licensing Officer and fixes responsiblities for Contractors and liabilities for Principal Employer and probibit employment of contract labour engaged on perennial nature of job.

These are provisions regarding Welfare Measure to Contrct Workment, Rest Room, Latrine, Washing facilities, First Aid etc. timely disbursement of wages as per the rates fixed by the Govt. Wages Slip, ID card etc. Principal Employer and Contractors to maintain Registers prescribed under the Act.
Annual Returns by the Prinicipal Employer and Halfyearly returns Contractor should be submitted to the authorities under the act
For any Contravention of provisions of this Act eh employer and Contract are punishable with imprisonment for 3 month or fine.