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Contract labour act in India: a pragmatic view


  • Meenakshi Rajeev


In order to surpass the stringent regulations, the industry sector in India is largely resorting to contract labourers, who are governed by an Act. A primary survey carried out in an industrially developed state in India, reveals that several stipulations made in the Act are not followed. The workers felt that collusive agreement between the labour inspector, and the entrepreneur (or the contractor) has aided the violation of law. We consider a game theoretic model of Marjit, Rajeev and Mukherjee (2000) to show why such an act is optimal and examine whether any provision of reward for the inspector independent of fines collected by him would help to protect the law.

Suggested Citation

  • Meenakshi Rajeev, 2010. "Contract labour act in India: a pragmatic view," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 3(3), pages 237-252.
  • Handle: RePEc:ids:ijepee:v:3:y:2010:i:3:p:237-252

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    Cited by:

    1. Rahul Suresh Sapkal, 2016. "Labour law, enforcement and the rise of temporary contract workers: empirical evidence from India’s organised manufacturing sector," European Journal of Law and Economics, Springer, vol. 42(1), pages 157-182, August.


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