Re: Applicability Of Labour Laws Under SEZ Policy - - CiteHR
Executive - Personal & Admin
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Dear All, Please let me know how provisions of contract labour Act are applicable in SEZ (Special Economic Zone). Thanks, Harish Shenoy H
Dear Friends,

Let us be clear - The Govt.of India notify certain areas coming under SEZ and specify various entities covered under SEZ from time to time in the form of a notification(s). Some of the Contractors, like canteen, HK, Landscaping, Material Handling/Logistics etc. perse are not declared entities of SEZ. At best they are Contractors registered under CLRA and they are Service Providers to the SEZ companies. And so they will be entitled certain incentives & exemptions like Service Tax, Local Taxes/CST etc. as per SEZ scheme. Their services never deemed to be export nor any Foreign Exchange involved. They are neither declared by GoI under SEZ nor involved in activities covered under SEZ schemes. Therefore, methinks they have to be covered under CLRA notwithstanding whatsoever notifications issued by the respective state govts. And it is always better for the companies in SEZ and services providers as well to ensure they are not violating labour related laws in order to avoid implications & complications.


The subject is rightly divided into two. One is the company and another is contract. Contract under CLRA. Hence labour law applies for such activities. In case of company also, there must be system to readdress the problems of sez workers. Government should not forget this requirement.
It is divided into two. One is SEZ activity and two ancillary activity. In any case both are suppose to follow labour laws. Only difference, some times Labour Authorities powers are delegated SEZ directorate, but in case of non core activity such as gardening, security, HK, loading and unloading, maintenance etc cent percent labour rules are applicable. CLRA applies in both the cases.
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