Industrial Relations And Labour Laws
Hr & Administrtion
Hr, Legal Compliance & Er-ir
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Please consider the following case:
1) A contractor is completing two tenders with the same set of contract employees in the same premises
2) He has got license from CLRA authority for 'X' employees based on the first tender.
Should he also get license for the second tender even if the address of the premises is same, the nature of work is same & the set of employees he is using for the execution of work also same?
Experts may please throw some light on this.
Thanks in advance

License is obtained on the basis of form V given by the Principal employer. In respect of one contractor, the Principal employer can not issue two declaration. Therefore, so long as the number of employees to be engaged for execution of the second project remains the same, the contractor need not get a fresh licence. Moreover, the licence is plant specific. Therefore, in my opinion the same license would do the purpose.

If the Principal employer is the same in both the tenders then there is no need for separate License. But if the Principal employers are different then there is a need of two different license.
LabourNET Law Consultancy,
Labour Net

pricipal employer sent the his contractor to do his work in his client (another one pricipal employer) factory premises
then explain me to who is liable to issue form no V to this contractor.
Best regards

Dear Sunnydays
If Principal employer is same and location is also same then there is no requirement to obtain separate labour licence for each work, yes if there is required more labour than prescribe no. of labours in your licence you can revise the no. of labours.
Thanks and Regards

Dear Sunny,

I have different opinion on the subject & as per my opinion you should go for separate licence for both the tenders. It may possible that address of the premises is same, the nature of work is same & the set of employees he is using for the execution of work also same but i would to share the following in support of my opinion:

1) Principal Employers may issue separate Form V for separate tenders/ work orders.

2) Licence is obtained on the basis of work order as date of commencement & completion of both tenders must be different.

3) Taking one consolidated Licence may leads to legal difficulties as to legally close a site you need completion certificate/ TOC from client and in case of two tender for sure they will issue 2 completion certificate/ TOC and you may be caught in audit whether its legal or financial.

4) Separate Licence will also escape you from providing certain facilities while executive work order which you have to provide on the basis of engagement of workmen i.e. canteen which should be provided when you are engaging 100 workmen at site but if you will take two separate licences for 50/ 50 workmen then it is not applicable.

Therefore i would suggest you to go for separate license instead of 1 Licence for two tenders/ orders.

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