I am working with one manf. company. we have engaged 10 contractor and each contractor have recruited 12 employees.we have total 120 contractual employee. I would like to asked the question shall company apply for registration of certifiate or company will force to contractor to apply for labour licences. i would like to also know that as per contract labour 20 or more workman employing during the calender month that time only apply the act. In my case act is applying or not.
IInd question is what is section 1(4) b under contract labour (regulation and abolition) Act 1970
Kindly guide me
Thanks & Regards
Employer engages less than 20 contract employees and contractor has less than 20 employees does not require registration under the Act.
Employer engages more than 20 contract employees needs registration. Contractor can be unlicensed.
Contractor has more than 20 employees needs licence and employer needs registration.
2. The contractor needs License only if the number of his employees exceeds more than 20.
Hope this is clear.
I think that in a factory where there is 10 or more workmen under contract then the firm should go under CLRA. Excepr the manufacturing concern the limit has been extended to 20 workmen.
I would request other members to correct me if i am wrong but recently I had a talk with the Labour Inspector and he stated as such.
When we are discussing abour CLRA Act, we should not use the word employee, we should use the " workmen". as "workmen" has been defined by CLRA Act of 1970. Now for your question, it is mandatory for an establishment employing 20 or more workmen to go for registration, if employs contract labour. and its also mandatory for a contractor to get licence , if employs contract labour. Less that 20 for either of the cases is not mandatory. But if appropriate govt. wants this act will be applicable if the number is less than 20.
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