Who is required to apply for license-Contractor or Principal
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Armaan Started The Discussion:

Hi Can anybody suggest me as to who is required to apply for license under Contract Labour(Regulation and abolition) Act,1971. What is procedure for applying the registration? Which is the proper authority to apply for? Thanks Armaan

nilendrachand -  Member Since: Aug 2007
Dear Armaan, Contarct Labour Act and employment of contarct labour is applicable in the following two conditions: (a) to every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour (b) to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen : Provided that the appropriate Government may, after giving not less than two months' notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or contractor employing such number of workmen less than twenty as may be specified in the notification. Procedure for application: By Principal Employer: Principal Employer also needs to obtain license for availing services of contract labour. The process is as follows: Every principal employer of an establishment to which this Act applies shall make an application in Triplicate In Form I to the Registering Officer of that area. It should be accompanied by a demand draft showing payment of the fees (Fees varies depending upon the no. of persons-for details on this pl refer to the rules framed under this act) for the registration of the establishment and should be delivered either personally to the registering officer or sent to him by registered post. Regards, Nilendra

ravishivi -  Member Since: Feb 2007
you are right, but the contractor also has to submit the required trade licence and open a PF code and submit the details to the prinicipal employer for helping him in submitting Form 1.

abhirutu -  Member Since: Aug 2007
Dear Armaan In addition to what is stated by other fellow members, I would like to state that when you engage any contractor who is deploying 20 or more workmen, the Principal Employer has to enter into a legal contract with the Contractor as also issue Form V to the COntractor to obtain License under the CL(R&A) Act. Since you are based in Mumbai, I believe the premises is in Maharashtra. The labour authorities are very strict and vigilant about the CLR&AA issues. Also retain copies of the Licenses obtained by the Contractor for your records and reference. The Registration and License is valid during a calendar year i.e. Jan to Dec and before the expiry of annual Registration/License, system has to be kept in place to renew these contracts atleast 60 days in advance i.e. before end of October. Similarly, if there is any change in the no. of contract labour registered or change in the contractor, ensure that immediate intimation is filed with the Competent Labour Authority. Hope this is sufficient to have an overview of the registration/license processes. In case you want more info, pl write to me at Regards & wish you all the best.

ASHOK KUMAR SHARMA -  Member Since: Oct 2007
Hi I would like to add some more in the questioned matter PRINCIPAL EMPLOYER Principal employer has to obtain RC ( Registration of Certification under section 7A of Ontract Act , First PE shall apply for RC if PE hired a contractor , after regeistering under Section 7a than PE issue Form No V to contractor , after that contractor shall apply for labour Licence on Form No IV in triplicate copy alongwith copy of RC and secrity deposited challan and Labour License fee which depends on total workmen to be engaged at site/factory Renwal Gnerally contractor apply for renewal of labour License beofre 30 days of aexpiry Labour License , if fails to apply within stipulated time than the contractore shall have to deposit 25% excess amount as a penalty , beside this PE also maintain records and shall submit Annual return and contractor shall also maintain various registers required under contract Act and submit half yearly and yearly return on perscribed formats. ASHOK KR SHARMA GENERAL MANAGER -HR BLK GROUP OF COMPANIES MATHURA ROAD ( mOHAN CO-OP INDL ESTATE) NEW DELHI 110044

ASHOK KUMAR SHARMA -  Member Since: Oct 2007
Actually there is clear mentioned in Contract Labour ( R & A ) Act 1970 that Principal Employer shall obtain RC under Section 7 of CLA 1970 thereafter he shall isue form No V to contractors . After receipt of Form No V than contractor shall apply for labour licence becuase contractor is required to apply for Licence under section 12 of Contract Labour (R & A) Act. 1970 so contractor is required to obtain licence not Principal Employer . ASHOK KUMAR GENERAL MANAGER -HR & IR M/s. B.L.KASHAYAP & SONS LTD A21/B1 MOHAN CO-OP INDL ESTATE MATHURA ROAD , NEW DELHI Mb 09350578043

Narayana Swamy R -  Member Since: Dec 2007
Dear All, We are engaging some consultant through contractor where the contractor is having 30 contact labours among that there are 20 are consultant. remiang 10 are skilled /semiskill labour. Hence you are requested to kindly advise whether licence is required or not undr CLA Act. Pl treat the matter is very urgent. regards rns

ednap -  Member Since: Nov 2008
we want to get registered as a Principal Employer in the State of Rajasthan, what is the procedure and the forms to be filled up, fees with the security deposits??? and the proof for being Principal Employer kindly guide

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