manjeet067
7

Dear All,
What will be the consiquenses,If an Organisation engaged Contract Labour without obtaining permission form appropriate govt. and also Contractor donot got registration under section 7 and 12 respectively.
Regards
Manjeet Singh
Amritsar

From India
bunu_roopa
5

Dear Manjeet,
This indeed is a serious issue. Supreme Court has ruled that in the absence of registration certificate and license of the contractor, all the labours who have passed the 240 days test will be considered as regular employees. if any of the CL approach the labour authority for regularisation, then the company is at risk.
Regards
Roopa

From India, Madras
thinkjobz
97

Hi Manjeet,
In case of Mines or underground construction as well seasonal labour the dates get reduced to 120 days, hence its preferable to either ask the contracter to get a MOU signed with a Major contractor whose license can be used in case the prequalification of the contractor is not possible or start to look out for legal options to secure your company.
Regards,
AJ

From India, Thana
manjeet067
7

Dear Bunu_roopa/All

I have in my mind the view as of Mr. Bunu has given , but according to one prominent body's views which are given below , i have started this discussion ,If CL are not liable to absorb by the Principal Employer then what will be the possible effects on the Principal Employer?

"It has been well settled by the various judgements of Apex Court & High Courts that the contractor's employees will not become the employees of the principal employer,even if the principal employer does not get registration and the contractor does not hold licence,through employing contract lobour without obtaining registration or without obtaining license is an offence under the Act.Also if the principal employer terminates the contract of the contractor and thus the employees of the contractor becomes surplus,it is not obligatory on the principal employer to absorb the employees of the contractor.
The Supreme Court has held that neither the Contract Labour ( Regulatio & Abolition ) Act nor the rules made thereunder provide that upon the abolition of the contract labour in any establishment the said lobour should be directly absorbed by the employer of that establishment."

Kindly have a coments on this important aspect .

Regards

Manjeet Singh

Tarn Taran(Amritsar)


From India
vaibhavbakshi
1

Hi,
i would like to highlight that all such jugdements to be read in totality.
while an organization not registered under the contract labour act and if it employs CL thru a contractor which futher dont have a valid license, it may creat lot of hassles in terms of proving that the said CL are employed thru contractor. The onus of proving the same is further difficult as it depends upon lot of issues and all courts will see the entire subject in totallity and award such judgement.

From India, Ahmadabad
Kuljit Pal Singh
21

Dear Manjeet,
Consequences of violation of Sec 7 of Contract Labour Act is given under Section 8 i.e Effect of Non Registration wherein it is clearly written that establishment cannot proceed the work by hiring the contract labours and Sections 23 and 25 which are the provisions of penalty if violation of any provision of Act occurs. It is providing the Imprisonment of 3 mths and fine.
Very soon ull recieve the notice/showcouse notice on ur Companies MD if u have not liasened with LEO of the concerned area.
Regards

From India, Vadodara
acchr
1

The well known judgement is with the case of "Hariyana Electricity Board" and wherein case is very similar of your kind. It has been setted that the such arrangement is bogus and camofulge and therefore CL are entitled for relief as prayed.
Address the issue very fast and complete the paper formalities at the earliest.
Regards,
ACCHR

From India, Mumbai
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