Contract Labour - Labor Contract [Thread 343470] - CiteHR
Assistant Manager Human Resources
+3 Others

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Dear Seniors,
As i'm working in project site of power plant , where 84 contractors were engaged for various works. In which some of them have taken the labour license under CLA 1970, engaging more labours as per the Act (20 nos.) specified. Remaining contractors have engaged less than 20 workmen.
Sir, please advise should they have to take the LL under CLA if not, in which ACT they have to registered so that liability upon principal employer should be minimised, so that we can issue the work order to them.

Do you have registration certificate of " Principal Employer " if yes then ensure that the contracter is complying all the statutues applicable to your industry.
insist all contractors to take LL. In construction sites, they may have to increase the manpower at any point of time according to the exigencies of job. Better they should take LL otherwise you will be in trouble in the capacity of Principle Employer.

Dear Ashish,
there are two ways for this issue:
1: you have to insist all the contractors to take the LL at the earliest.
2: otherwise you have to tell the contractors whose labourers are less than 20 to add them in whose labourers are more than 20 and took the LL and complying all the statutories of the Labour Laws.
How ever if the organisation grows and the need also increases then again you will face the same problem,
so i suggest you to guide all the contractors and make them understand the importance of L L and to take LL at the earliest.
because i have used the same formula and i got the result in positive.

Dear Ruth,
As u have advise, I've already advise this thing to contractors but they are not convinced due to such reasons:
1. When they engaging contract labors less then 20, so they are not interested to go for that as per the Act.
2. Labor inspector charging more money to provide license, approx. 35000/- per license.
3. As per there nature of work, there work just for 3 months. So they are not interested to pay such amount for 3 months.
Now, Please advise.

Dear Ashish,
You would have issued work order to each contractor mentioning nature of work to be done, estimated completion date and cost. In that all have signed to comply all legal matter pertaining with that work order. You may estimate number of workmen required to complete the task.
You have full right to check whether they are showing less than 20 employees or it’s actual.
They may have temporary contract license.
They have to contribute towards EPF and ESI, if they don't have registration they can go for it or contribute in your registration.
Principal employer is accountable for non compliance of statutory obligation.

Dear Ashish,
As Mr. Shaikh said you can tell the contractors who are working for 3months to take temporary contract license. but the employees should be more than 20 only.
if they are less than 20, then no issue of LL.
i think you are clear

Dear Ashish,
First you have the CL under the CLA in the capacity of principal employeers. If you have give the name of contractor in the list of contractor which are amended. there are no issue to number of worker but the issue is to maintain the Contract Labour Register form No. 12 under the CLA Act.

Dear seniors .
I have joined a small IT company.they have signed a bound or contract from me .I want to know that Is the contract or bound come under the contract labour act. or not .that company have less then 20 employees as per the act .
That contract have written i need to pay sum of 1 lac to the company .if i break that contract. but the salary of this company is not good .

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