Industrial Relations
Legal Analyst, Hrm
Korgaonkar K A
Payroll, Domestic Inquiry, Administration,
Manager- Hr Compliance
[email protected]
Sr Manager Hr & Administration
Anilrsv Sharma
Statutory Compliances, Contract Labour, Pay
Nadkarni P
+4 Others

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Hi All,
I have one query related to Contract labour. Now scenario is :
Residential Building Housing Society want to repair the small repairs and painting of the building. The Committed members engaged the Job Contractor to perform the work. He engaged the labourers for repairing and painting of the old residential building.
Whether the Contract Labour (P & A) Act, 1970 be applicable to the Housing society?
Whether Housing Society can be treated as Principal Employer?
Please reply.
With regards,
Avinash K.

From India, Mumbai
Dear Avinash, Yes, if you have any doubts on the above said subject you may approach me 9866917232 Laxmi
From India, Hyderabad
How many labourers the contractor has engaged?
The applicability depends on the above question. If the labour strength is less than 20, then you need not to worry. In some states the strength must be within 10.

From India, Kumbakonam
Hi all,
The manpower strength is varied from time to time.
Again when repairing work going on then it will employ around 15-18 labourers.
Whereas in painting it will be around 16 labourers.
Avinash K.

From India, Mumbai
If you do the same in phased manner i.e., first repairing work with 15 to 18 labourers and then on completion of repairing work painting work, then you need not to take any license. But if you take up the work in single go, then you have to obtain registration certificate under CL Act and the contractors engaged by you have to obtain the license.
From India, Kumbakonam
Hi Bhaskar,
Thanks for Reply.
My point is Housing Society is just used for residential purpose only. It is not involved in any commercial or manufacturing activities. So How could CLRA will be applicable?

From India, Mumbai
Dear Avinash
If a person met with an accident while performing the repairing or painting job, will the WC Act excludes the owner of the House from paying the compensation?
There are exemption for BOCW Act but there is no exemption for CLRA. If you engage any contract labour then you must obtain registration under CLAct. If the working strength is more than 20 then the contractors must apply for licence under CL Act.
If the cost is less than Rs.10 Lakhs, then you need not apply for BOCW Act Registration.

From India, Kumbakonam
Dear Mr.Akatrap

According to section 1(4)(a) of the Contract Labour (Regulation and Abolition) Act, this law applies to every "establishment" in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour. Therefoe, for the CLRA Act to be applicable to the Housing Society, the society should be an "establishment" referred to in section 1(4)(a) and defined in section 2(e) of the CLRA Act. According to section 2(e)(i) any office or department of the Government or a local authority is an establishment under this Act. This clause is not applicable to the Housing Society referred to by you. Further Section 2(e)(ii) states that "establishment" means any place where any industry trade business manufacture or occupation is carried on. Your post does not indicate whether any industry trade business or manufacture or occupation is carried on by the Housing Society referred to by you. If your Housing Society does not carry on any industry, trade, business, or manufacture or occupation then it is not an "establishment" as defined in section 2(e)(ii) of the CLRA Act and therefore need not take out a registration under the CLRA Act if contract labour is employed. You may refer to the judgment in the case Powar vs Labour Enforcement Officer (C) reported in 1993(66)FLR 833(Kerala) = 1993 I LLJ 521 wherein it was held that the residential quarters of a Bank is not an "establishment" as defined under the CLRA Act and therefore the CLRA Act does not apply.

With regards

From India, Madras
Hi Harikrishnan Sir,
As I said it is purely a residential building. The residents has formed the Housing Society.
Over the period of time, the maintenance issue come up and hence housing society has decided for maintenance and painting of the building.

From India, Mumbai
Dear Mr.Avinash

If as you have said, the building is purely a residential building and the Housing Society is not carrying on any industry etc., then the CLRA Act is not applicable. Therefore, the Society need not get a registration under the CLRA Act as Principal Employer even if more than 20 contract workers are employed. But however, the Housing Society will be liable to pay compensation under the Employees Compensation Act(formerly Workmens Compensation Act) if the workers engaged for the maintenance/repairs are injured or lose their lives as a result of an accident arising out of and in the course of their employment. The applicability of the Employees Compensation Act is subject to the condition that the ESI Act is not applicable. The circumstances /conditions under which the Employees Compensation Act is applicable to a particular employment/employer and worker is different from the circumstances/conditions under which the Contract Labour Act or the BOCW Act is applicable to an employer/worker.

With regards

From India, Madras

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