THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT,1970 - shop & establishment act
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THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT,1970

sachin Dethe Started The Discussion:

Dear All,

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
Sachin Dethe

rajanassociates - Contributing Member
:idea:

DEAR

DO NOT BE UNDER THE IMPRESSION THAT AVOIDANCE OF CLRA REGISTRATION IS GOOD TO YOUR ORGANIZATION, ACTUALLY IT IS THE OTHER WAY, IT WILL BACKFIRE ON YOU AS PRINCIPAL EMPLOYER.DONT COUNT THE NUMBERS.GO FOR REGISTRATION.

V.SOUNDER RAJAN

Srinivas Neeragantapalli - Contributing Member
Dear Sachin,

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.

Regards,

Srinivas

Zakir Malik - Contributing Member
1. At any given point of time if the number of employee exceeds more than 20 in a year whether in direct or indirect employment, the Company is required to be registered under CLRA.

2. The contractor needs License only if the number of his employees exceeds more than 20.

Hope this is clear.

Regards
Zakir Malik

ajayraj - 
Dear Sachin,

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.

Thanks

Ajay Raj

d_singh007 - Contributing Member
dear Sachin
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.

CLRA is applicable for 5 employees engaged. upto four employees it is not required it comes under Shop & Establishment act. regards, rajashekar

Dear Sachin

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.

With regards

Khusi Sarangi

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