The Act applies : (i) to every establishment employing twenty or more contract labourers; and (ii) to every contractor who employs/employed twenty or more workmen [Sec.I(4)]. In West Bengal the number of workmen is 10 or more.

The Act provides for regulation of Contract Labour coming within it's purview. It also provides for prohibition of employment of contract labour in any process, operation of other work in any establishment by issue of a notification by the appropriate Government in the Official Gazette after consultation with Central or State Contract Labour Advisory Board as the case may be. The Act also provides for registration of establishments and licensing of contractors.