Partner - Risk Management
Head - Outsourcing
Personnel & Industrial Relations
Invoicing And Costing
Manager - Hr
Ali Sultan
Asst. Hr
+13 Others

Hi Seniors,
This is Minakshi khurana working in project based company in japanese MNC.My query from my respected seniors is that one of our clients is not issuing the form-V for labour lisence to our sub-contractor & even he restricted the entry of labour on the site.please give your suggestions.
3rd February 2012 From India, Delhi
Minakshi, Are the terms of contract (Work Order) with you ? If yes please check whether you can sub-contract the work. If yes you can go ahead and explain the restricting authorities. Manish S Joshi
3rd February 2012 From India, New Delhi
Dear Manish,
Yes,it is in the contract that we have to hire labour from sub con.
Principal employer is asking the separate labour license for sub con.then please tell who will issue form-5 for sub con.
3rd February 2012 From India, Delhi
Principal employer will issue form V to you. You in turn out source the job to sub-contractor based on the nature of job as given in form V. You need to check first whether the sub-contractor is having license (subject to minimum numbers of workmen employed) if having more than 9 contract labours in Gujarat & 20 in some other states. If he employes less than 9 or 20 as the case may be, you can empanel this contractor in the register No 12 and issue him form V. However you need to register your establishment for engaging contract labour. In which state is your office located and what is the core function of your establishment ? There may be many more issues related to PF and WC/ESI so you just need to take care of them too.
3rd February 2012 From India, New Delhi
Dear Minakshi,
For Karnataka state for 20 employees you must opt for contract labour license. First employeer need to get contract labour license, after that he will issue a form V mentioning your company name is providing manpower and their license No. After that you can register your company as a contractor for the said company.
If you are subcontracting the same, but bill will be paid in your company name only, If subcontracted labour working under your company name, then i don't think that sub contractor need to get form V from employer. (Kindly Check)
But all workers will fall in your company roll and required statutory obligations is your responsibility. (Kindly Check)
3rd February 2012 From India, Bangalore
Dear seniors, Thank you so much for you valuable remarks. I agree with Mr Praveen sub cont need not to get labour license separately..but our client is insisting for the same thing. Regards Minakshi
3rd February 2012 From India, Delhi
Dear Minakshi,
Mr. Praveen is right. The Principal Employer will issue Form - V in the name of ur comapny and if you are deploying 20 or more workers, you have to apply and obtain Labour License in ur company's name. But, make sure that while preparing the registers of workers, all the workers belonging to ur sub-contractor will appear in your muster roll and u have to prepare all documents in ur company's anme only.
P R Krishnan

3rd February 2012 From India, Mumbai
Dear Meenakshi,
Also you need to maintain documents related to Contract Labour. Because in Karnataka they follow this rule very strictly.
You need to maintain all registers in their formats, it is headache, but need to follow, otherwise the labour inspector will create problems.
1 Adult Register
2. Leave Register
3. Employees service records
4. Salary Sheet along with Employer's authorized persons signature.
5. OT Register for Exempted Employees
6. Advance Register
7. Fine Register
8. Deduction Register
9. Muster Roll, Etc,
For any help you can call me.
Best Regards
3rd February 2012 From India, Bangalore
Dear Sir,
As per Contract Labour Act, if contractor is engaged by the Principal Employer, an agreement
will be there between the contractor and Employer.
In Such case, the Main contractor will be given Form-V to get registration with the Labour
Dept. for such work.
If he engages sub contractor, the workers are deemed to be main contractor workers. As such
the employer need not give Form-V to the sub contractor because, the employer is not engaged
the sub-contractor directly.
LL.HR & IR Consultant
3rd February 2012 From India, Hyderabad
dear sir,
I am working as a labour officer in textiles and spinning mill dule my employer plan to start new textiles plant, we are not given to contract to others for building of the factory and other constration work, all of work done by my employer becouse he have own infastracture company.
so, my question is contract license required or not?, if required what is the prosess for this.
kindly help me.
manoj kshirsagar
4th February 2012 From India, Dhule
Dear Meenakshi,
your principle employer must have submitted Form II to the appropriate labour office by including your company name in Form II. The value of Form V is applicable to the contractor only when your company name is register in the Form II with the labour office. The Form V is issued only in the name of the contractor as their name is already registered in the Form II. The Form V will not be issued to the sub contractor by the Principle employer as their names are not mentioned in their Form II.
As a contractor we have to get form V from the principle employer and engaged our sub con under our control. All docs and other formalities are in the name of contractor only and not in the name of sub con. Suppose we want the sub con to have their own labour license, the principle employer has to enroll their name in their Form II filled with labour office and then to issue Form V.
T Kumar
4th February 2012 From India, Madras
Dear Minakshi,
Form V to be issues by the Principle employee only , Based on that Form 5 , The contractor need to get the valid labour licence . The Labour licence is valid for only one year .
To renew the Labour licence again we have issue a Form V . So every year we need to issue a Form V for renewal of Labour Licence .
4th February 2012 From India, Mumbai
Dear Ms.Minakshi,
Suppose your company is namely 'X' and your sub Contractor is 'Y' and your contract with Z company.
In this scenario, Z is princiapl employer and X is contractor and Z shall issue Form V only to X and not to Y because Contract Agreement has been made between Z & X not between Z & X.
X has been engagmed to Y only for accounting benefit purpose.
Even if you entered in tripartite agreement i.e.among X-Y-Z and by vertue of that Tripartitate Agreement Y is working under contract in Z compnay in this case Z company shall issue Form V and also take RC for Y only and monthly bill payment shall be released in favour of Y only ( Z shall verify all legal requirement of Y).
Then what is use of X enter into tripartite agreement because in eyes of Law in above scenario X does not have any legal entity since Y is working as independent contractor.
4th February 2012 From India, Pune
Dear Mr. Shiva,
I think you are also confused as regards to issue of Form - V to contractor for obtaining Contract Labour License.
Principal Employer will issue Form - V only once and for renewal of contractors labour license, the contractor will apply in Form - VII alongwith original license and the labour deportment will renew the license.
In Maharashtra all license are computerised and even though paper work has increased, the system is good. Now they started issuing computer generated licenses and Assistant/dy. Labour Commissioner will sign and issue it.
P R Krishnan

4th February 2012 From India, Mumbai
Agree with PR Sir, There is Form VII for renewal of license and there is no need for Principal employer to issue Form V every year...
4th February 2012 From India, Hyderabad
I think your principal employer is correct in his approach.
He has given you a contract, and he has given you form V to get the contract labour license.
He does not have any relationship with the sub contractor, so he will not issue a form V
You can either get the employees in your own name (put them in your payroll for the duration of the project) or get the subcontractor to get a license by issuing a Form V in your own name to him.
You obviously do not want to risk the liability of the employees in your payroll, so you want to sub contract. But the principal employer is not directly responsible for it right ?
but remember that if you are taking the workers on your payroll, you need to give them new PF codes and ESIC Codes, or you will be in trouble.
5th February 2012 From India, Mumbai
Dear Gurumurthy Sir, Even for 2 employees,we have to obtains form V from contractor,because in our company for we are engaging contract labours, pls advise Regards. K R Ramaswamy
5th February 2012 From India, Madras
Dear Minakshi,
Your principal employer is right that your sub contractor too have to obtain a labour license.
To obtain the same principal employer has to provide form V to your sub contractor stating that they are certifying the company as they are sub contractor for you, and this is to be supported with the agreement or work order document between you and your sub contractor.
In case if your principal employer is not issuing form V and still they insist for the license, prepare and submit a request letter for Form V addressing to your principal employer and get the acknowledged copy of the same. Then in form IV for point no. 8 "Whether a certificate by the Principal Employer, in Form V is enclosed" note it as applied and enclose the acknowledgement copy and apply for license with other requirements.
6th February 2012 From India, Madras
if your contractor deploy worker more than 20 then he required labor license, so that he required form V from principle employer, if contractor below 20 then he not required to register for labor license also not required to take form V from principle employer.
if i am wrong pls clarify me........
30th March 2012 From India, Mumbai
Dear Minakshi,
The principle employer is right in his action.
The principle employer has entitled to issue Form V only to his registered sub contractor to whom name has declared in his Form 2 submitted with concerned Labour Commissioner Office. Since you have not declared / furnished your sub contractor particulars to the Principle employer before appointing him for your execution, principle employer can not issue Form V on his name. In such a case your sub contractor's employee can work under your role and license for which you will be responsible for all statutory norms.
The Principle employer has to include your sub contractor particulars on his Form 2 submitted / registered with labour commissioner and then only they may be entitled to issue form V to your sub contractor through you.
T . Kumar
30th March 2012 From India, Madras
Dear HRians
Do the the subcontractor company in construction worksite engaging more than 200 labours in Karnataka need to have labour license or not.
Because the contractor and principal employer is not willing to provide Form V and form VI to subcontractor, stating that labour officers will not question about license from subcontractor and incase of any problems in future, contractor will take care of such issues.
Our concern is that in work order they have not specified anything about license and all statutory compliances need to be adhered by subcontractor. Also in labour license of contractor, they have not specified any proof about subcontractor.
Incase of any accidents, theft etc., without labour license by subcontractor, how will we face labour officials! The only way is to be under shelter of contractor, but without any proof the contractor will definitely let down us during crisis.
Hence subcontractor without labour license is legally correct!
Best Regards
Raj HR
7th March 2013 From India, Bangalore
Dear all,
i want your suggestion whether can we hire a sub contrcat without any liability of principal employer, in the same premises where one contractor is already working ? please advice ?
Thanks & Regards
21st December 2013 From India, Kanpur
Hi respected people,
I am Prasant, My query is , if any contractor is having overall more than 20 workers but they have been not deployed in a single organisation ( principal employer), the deployed number is less than 20 in every client ( principal employer).
like Example- 4 in one client, 6 in another etc.. no client is having 20 or more worker from the Contractor,
in the above situation, does the contractor need to have contract licences or, Is CLRA act applicable to this contractor.
please help in the above query.
26th July 2017 From India, Bengaluru
please provide evidence document for principal employer issue form 5 to sub contractor
27th November 2017 From India, Nagpur
Dear Sir's/ Seniors,
Please suggest me if we are main contractor can we issue form-V to our sub contractor?
Thanks & Regards,
Samiran Das
30th January 2018 From India, Rohtak
Only the Principal Employer has to issue Form V including the sub-contractor, since the Registration certificate could have been obtained by him.
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402)
30th January 2018 From India, Bangalore
Hello Sir,
I want to know that if Principal employer agreement is with Main Contractor & sub contractor's agreement is with Main contractor then who will take labour license as per Maharashtra Contract Labour Act.
Main contractor's employee strength is 5 & Sub contractor's employee strength is 60, In this situation is it mandatory to take labour license in the name of main contractor or sub contractor as sub contractor has no agreement/ work order with Principal employer.
As per our past experience one of our sub contractor has applied for labour license in Maharashtra but Labour officer has rejected their Labour license application.
Please suggest with require supporting documents / Notification.
24th August 2018 From India, Haryana
Dear member,
The labour licence can be taken by the sub-contractor as well. Since the main contractors have only 5 employee (which does not comes under the preview of CL Act).
The main point is that whether it is mentioned in the main agreement (PE and Main Contractor) that the Main Contractor can sub-let the work / part of the work to any sub-contractor. Moreover, first check whether the PE has taken RC from the labour office. Only after getting the RC a PE can issue Form V.
If sub-let contract is mentioned and the PE has a valid RC than on request of main contractor the PE can issue Form V in favour of sub-contractor and labour license can be obtained.
6th September 2018 From India, Delhi
Dear All
++++++++++++++ Thanks for your inputs. Wish a happy and prosperous festival of lights, DIWALI +++++++++++++
5th November 2018 From India, New Delhi
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™