This Act abolishes the Bonded Labour System and prescribes 3 years punishment for extracting bonded labour.

In our country many labourers are working on very low wages or on no wages with their creditors. They owe some debt from their creditors because of that debt they work with them with very low wages or no wages. This Act is abolished this system.

By this Act, all bonded labourers are made free. They are also made liability free for paying their bonded debts. Any property mortgaged under bonded debt is also made free without paying any amount. The creditors right to accept payment against bonded debt is also extinguished.

District Magistrates and Sub Divisional Magistrates are appointed main authority to implement this Act. Provisions for vigilance committee, to abolish this menace and to provide the economic and social rehabilitation of freed bonded labour are also made.

Offences under these Acts are tried by Executive Magistrates and not by Judicial Magistrates, which look after Criminal case.

The Executive Magistrates are given power of Judicial Magistrates for trying offences under this Act.