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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.

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
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.

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.

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)

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
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

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

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

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

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