manasilko Started The Discussion:
Please provide your opinion on the below 2 cases:
If a company has an agreement with a vendor to provide contract labours for a 6 months contract, then is CLRA applicable on the IT firm. Does it need to take registration to have those contract labours.
If a company has an agreement with a vendor to provide contract labours for a 6 months contract, but these contract Labours are Full time Employees for the vendor. Then, is CLRA applicable on the IT firm. Does it need to take registration to have those contract labours.
Thanks in advance,
Dear Mr.Manasiko From the information provided by you, in both the cases, the CLRA Act is applicable
In this case, the IT company is the 'Principal Employer' and the vendor is the 'Contractor'.
The CLRA is applicable to all institutions where more than 20 contract labour are hired. Some sections of the Act are relevant to the principal employer and some, in-fact most are applicable to the contractor.
The principal employer will have to register with the labour department of the state and obtain a registration certificate.
Based on the principal employer's registration certificate a Form V is issued to the contractor who in turn will apply to the labour department after paying certain fees per individual. The Form V of the contractor is to be submitted alongwith a copy of the principal employers registration certificate and proof of payment of fees/DD as required by the state labour department.
The contractor is then issued his license in about one months time. I'm sorry to state that the labour department is incorrigibly corrupt and will expect some compensation, if you are in a hurry. If you are not in a hurry, your UPC receipt will suffice till they issue the license, in due course.
The license is generally for one year and can be renewed. There is a small renewal fee and of course the departments gratification!!
I hope I have been able to help. If not you can either contact me on my mobile or email me :
Proprietor 'TRURECRUIT' Placement Consultancy
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The period for which a contract labour is to be hired is need based and is the look out of the contractor and not that of the principal employer.
The contract labourers are to be terminated by the contractor and not by the principal employer. However, if the contract labourers are terminated by their employer(contractor), he has to comply with the provisions relating to payment of retrenchment compensation and notice pay in case the labourers had put in one year of continuous service. In case either chapter V-A or V-B of the Industrial Disputes Act 1947 is applicable to the contractor, then the procedure prescribed therein has to be followed
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