Government of Tamil Nadu
Labour Contract

Eradication of contract labour system is obligatory in industries under Contract Labour Abolition Act.  Hence, the Government of Tamil Nadu is the pioneer in implementing this statutory requirement by forming labour service cooperative societies in the State.
                       
These societies give a new life to the casual labourers by providing permanent employment with full wages.  They are no more in the clutches of contractors.  The first of this kind was MRL.  Indcoserve Limited which was registered in 1983.  Similar societies were subsequently formed in NLC Neyveli; BHEL Trichy; BHEL Ranipet; Salem Stainless Steel Plant and Kalpakkam etc.  At present 36 labour contract societies are functioning. Minimum wage, gratuity, bonus, wages with Earn Leave, wages for National and Festival holidays, workman compensation, uniforms and shoes and Medical expenses are obtained from the Principal employer and given to the worker members of the labour contract societies.  The members are availing such benefits as per the provisions of Labour Acts and Factories Act.

The performance details of the societies are furnished below: 

Year No of Society

No. of Members

Sales
   (Rs. in lakhs)

2012-13

39

3502

4794.80

2013-14

36

3633

7592.71

2014-15

36

3792

11379.12

2015-16

36

6975

13301.64

2016-17

36

6975

14471.43