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CLRA Act (Contract Labour Regulation Act)

manasilko Started The Discussion:

Hi,

Please provide your opinion on the below 2 cases:

Case 1:
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.

Case 2:
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,
Mansi

kumaracme - Contributing Member
CLRA applicable to any firm only when the strength of the contract labourers crosses 20. otherwise you are not covered under CLRA

v.harikrishnan - Contributing Member
Dear Mr.Manasiko From the information provided by you, in both the cases, the CLRA Act is applicable

manasilko - 
Thanks so much for the information. I needed to have more information on this. Thanks, Mansi

gauravpujari - Contributing Member
Please note that there is NO relation of Employer and Employee between Principal Employer and contract labours. So resignation doesn’t require. Simply issue FORM 6 to Contractor.

dmc123 - Contributing Member
As others have already stated, you need to have 20 or more workmen on contract for the applicability of CLRA Act including all other contractors. In that case you need to take registration under the Act and the contractors have to take a licence and comply with all applicable laws.

trurecruit - Contributing Member
Quote:
Originally Posted by manasilko View Post
Hi,

Please provide your opinion on the below 2 cases:

Case 1:
If an IT 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.

Case 2:
If an IT 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,
Mansi
Hi Mansi,
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 :
Regards.
Colonel Gahlot
Proprietor 'TRURECRUIT' Placement Consultancy
9810081197 begin_of_the_skype_highlighting 9810081197 end_of_the_skype_highlighting

manasilko - 
Thanks everyone! How long is the contract labour hired for? Till the work is done or for a fixed time frame (e.g i year) What is the termination policy of these contract labours?

v.harikrishnan - Contributing Member
Dear Manasilko
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

manasilko - 
Thanks!

one more question-

If am employee is present on a fixed term contract then:
Q1) What should be the duration of the contract so that the employee cannot claim permanency
Q2) How many times should the contract be renewed so that the employee cannot claim permanency

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