Anonymous
Thanks to all for such good discussion on CL act. Can any one say in which base contract labour claim for permanancy employement.
From India, Ahmedabad
Strictly speaking Contract Labour System is an indirect form of labour to meet the requirement of only incidental and intermittant nature of works of any establishment. Prudence of any employer in the interest of economy of his operations would naturally compel him to outsource such intermittant and incidental activities through another who has the man-power at his disposal, the ability to monitor the work-in-progress and accomplish the activites in time to the satisfaction of the employer of the establishment. So far so good. But, over a period of time, this system began to be misused by the employers because of the emergence of supply of labour greater than for its demand. The resultant effect was the gradual and unscrupulous contractualisation of labour even for the core activities of the establishments for the sake of economy of operations. To curb this menace only the Central Govt legislated the Contract Labour ( Regulation and Abolition ) Act,1970. The simulatneous existence of incidental and intermittant activities along with the core and perennial activities in every establishment makes this Act regulatory and prohibitory in its operation. Section 10 of the Act empowers the Appropriate Govt to abolish contract labour system by prohibiting employment of contract labour in any process, operation or other work in any establishment on the basis of certain factors. Thus, contract labour, per se, is permissible in the processes/operations/other works in which it is not prohibited.

Therefore, the claim for permanency or absorption as regular workmen of the Principal Employer is possible only when the contract is held by the adjudicator or Court as sham.

From India, Salem
Anonymous
Dear Sir,
I have a problem to decide how to provide the compensation to the worker, as one of the worker is deceased on job, the agency has labour license as well as insurance from the M.P. Govt. And we are principal employer having registration from U.P. Govt. We had issue form V to the agency, and he has taken license from MP Govt. also the accident occured at MP location. Now, ALC said it is not covered under indutrial area so go to Labour court, now, when agency meet with the advocate to the labour court at MP, they are saying if principal employer taken form V from MP Govt and apply for new registration from MP Govt.then court will do the favour,
Sir,, kindly guide us, is it possible , a company taken registration from UP and MP govt and this case is resolved,, we just want to resolve the problem so that the deceased person dependent can get the compensation amount from insurance.

From India, Varanasi
Dear anonymous friend.
The statement " the agency has labour licence as well as insurance from the M.P Govt, And we are principal employer having registration from U.P Govt. we had issued form V to the agency and he has taken licence from the M.P Govt. also the accident occured at M.P location" is not clear to me. Can you elaborate further, please?

From India, Salem
1) Is labour license required to be taken if we have less than 10 manpower per location of deployment , and total number of locations are 15 ? 2) do we need to check the above in all states separately ? urgent opinion will be greatly appreciated.
From India, Delhi
Dear Nikom,
Licensing of contractors under the CLRA Act,1970 is a requirement strictly based on the no of contract labour employed by them in every contract they enter into with the Principal Employer as fixed in sec.1(4)(b) or under its proviso thereof. As it is, if the no of contract labour engaged in a particular contract work is less than the minimum no prescribed, no necessity to take up license u/s 12 of the Act.
However, the no of contract labour to attract licensing may differ from State to State. Hence the need for checking the criterion in all the States where your locations are situated.

From India, Salem
Respected Umakanthan.M Sir,

I'm working for a HR Outsourcing company who are also staffing on behalf of other companies through their Payroll. We have a client who are contractor to other big industries for selling & application for their product. For application they engage sub contractor as workmen level who basically help the contractor for actual application. They also engage us as a sub contractor where we provide App. Eng. who are basically responsible for managing shift & get the job done by the other contractual workmen engaged by the contractor through other sub contractor. They are also responsible for production, report to contractor's Accounts Manager of the Account & also to PE. Their nature of job is purely managerial nature / supervisory & they all are drawing at the range of 16K to 30K other than PF, ESIC, Bonus, Gratuity etc. They are mostly Diploma & Graduate Engineers.

As per definition of workmen under CLRA Act they are not "Workmen". Will CLRA Act applicable for them? What I mean that is it necessary to maintain all registers, records etc. as per CLRA Act. We are maintaining soft copy of their attendance, we process payroll through bank, issue payslip & irrespective of coverage limit they are getting PF, if covered under ESIC get ESIC or in lieu insurance under EC Act.

Seek your valuable advise in this regard.

Thanks & regards,

Koyel Debnath - W.B.



+91 9163711749

From India, Mumbai
Dear Koyel,
When there is multiplicity of application of Labour Laws to a particular establishment, the application of every such enactment is limited by its scope. When the employees supplied by you to your client are not " workmen " as defined under the CLRA Act,1970, the Act won't apply in respect of such employees.

From India, Salem
Anonymous
Dear Sir,
I want to know the entire process and the total cost occurs to take labour license as Principle Employer under CLRA for 100 labourers in UP and want to engage about 15 contractors for the completion of task.

From India, Delhi
Is it obligatory that only contractors having valid labour license be engaged? One organisation engages below 10 contract labourers through a Contractor.Being exempted,the Contractor did not have any labour license.What will be the consequence of such engagement?
A.K.Maitra

From India, Kolkata

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