The Form V To Subcontractors????????? - CiteHR
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Labour Laws & Ir
Ahmad Siddiqui
End To End Recruitment Process,performance
Gm (hr)
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Dear all,
Our company have an EPC project in JHAJJAR, we have engaged three sub-contractors to work on the site. now the principal employer only issue the form V for labor licence to our company. but how the sub-contractors to get form v?
The Contract Labour Regulation and abolition Act (CLRA) defines the term contractor in section 2(c)- meaning" a person who undertakes to provide a given result for the establishment ........through contract labour, or who supplies contract labour for any work of the establishment and includes a sub contractor".
so, I think the principal employer should issue the form v to the sub-contractors? can anybody give me some suggestion?

dear for subcontractor ,you are principle have to issue them form five . j s malik
Dear Mr.Malik Sir,
I think the above said person not conveyed the msg properly. This is my perception, if it is wrong i am sorry.
The real fact is that.
A. is above person company.
B. is intermediate company, who going to manage sub contractor as one.
I have to know how the dealings should happen. for following situation.
A company provide the contractor rights to B company and B company organising regarding the A company's requirement with help of 3 sub contractor. How this work flow can done in the sheo of B company. Please Explain to me.
With Regards,
G.R.Vishaka Guru.

Dear Friend,Especially for the EPC projects, the structure is like this; 1) PRINCIPAL EMPLOYER, 2) PRINCIPAL CONTRACTOR and remaining are sub-contractors of the Principal Contractor. So while issuing the Form-V to the sub-contractors the 1 & 2 should endrose the Form-V, make shure the principal employer's signature is must on every sub-contractor's Form-V.Regards,PBS KUMAR9848499629
as for as the Form-V issuance is concered , it is only the priciple employer who is issuing Form-V for the immediate employer as well as its sub-contractors.
In your case the immediate employer ( i.e. your company ) will write a letter to Principle employer regarding the engagement of sub-contractors & requesting them for issuance of Form-V for its sub-Contractor.
For that purpose you have to give the photocopy of your work order along with the LOI of your sub-contractors , on the basis of these documents principle employer will issue Form-V to your sub-contractors .
HR - Executive
Bhushan Steel Ltd.
Meramandali , Dhenkanal .Orissa

It is not the right of the Principal Employer to issue Form 5 indiscriminately. The purpose of Form 5 is only a statutory, formal confirmation on the part of the Principal to the Licensing Authority that a contract labour license can indeed be issued to the contractor. But before issuing Form 5 it is imperative that the Certificate of Registration of the Principal employer is amended to include the new set of contractors.
As regards your specific query, based on the authentication of your principal contractor you may apply for amendment of your Certificate of registration to include the sub contractors. ONLY AFTER THIS PROCESS IS COMPLETED you are competent to issue Form 5 to the sub contractors to enable them to get a contract labour license of their own.
A word of practical advise- In order to exercise better control over the statutory compliances of the sub contractors, I would suggest that you put the onus on the Principal Contractor,who needs to take a single license which will cover the maximum employment strength of all the contract workers. This will save you a lot of head ache as you can effectively block the attempts of the Principal Contractor to pass the buck in case of issues relating to Minimum Wages, ESI/PF Compliances etc., provided it is not repugnant to the terms and conditions of the commercial agreement executed between the principal employer and principal contractor.
Patrick Ryan

Dear Sir,
The Principal Employer has rightly refused to give form V to you for engagement of the sub contractors. As the contract must have assigned to you. Plz examine the contract deed & find out whether you have made a agreement to the effect that you will sub let the work. Issuance of Form V means that the P E is accepting the responsibility for compliance of different provisions in case of failure at the level of the Contractor. There are cerain matters in the Contract Labour (R&A) Act & Rules in which the P E have to fulfill the requirments if the contractor failed to do so.
Skylark Associates, Gurgaon

Dear All,
As the topic here relates to labour licence,I would be too happy to have ur advices whether or not we should stress for labour licence and other requirements of this CLRA.1970 and rules made thereunder,for those who are engaged for specific technical services for a few days only and are under ANNUAL MAINTENANCE CONTRACT for some machines or are certified by Chief Inspector Of Factories ,as competent person to carry out inspection for maintenance of safety of plant and equipments.
Ur valuable suggestion at the earliest will be highly appreciated.
Uday Kumar Verma

Dear Udai Kumar,
You may plz go through the Gujrat State CL (R&A) Rules for issue of temporary license/ R C. As in Haryana according to Haryana CL(R&A) Rules,1975 we are to have temporary license/RC under rule 32 of the sais rule if the contract work last for less than 15 days. So plz go through the Rules of yuor State or contact your Govt. Labour Officer. If any competent person declared under the Factories Act came to inspect your vessel, chain pulley etc. then this work can not be termed as contract work.
Skylark Associates,Gurgaon(Haryana)

In the above subject, officials from the Dept.of labour & employment can throw some light. There is lot of confusion. Some Principal Employers are issuing Form V to the sub contractors but some are refusing to issue. No body is clear on the issue. Similarly the act is not clear on what are the documents required exactly for obtaining licence for a sub contractor. In my opinion, the principal employer is well within his limits to issue a Form V to the sub contractor of a main contractor after getting an under taking from the main contractor to indemnify the PE for all the irregularities if any on the part of the sub contractor.
In EPC it is normal to appoint many sub contractors( based on each job- viz. civil, mechanical, eletrical etc). The PEs are also approving the engagement of sub contractors and hence they are duty bound to issue Form V to sub contractors also. Krishnakumar, Chennai

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