Dear Seniors,
I want to know can we engage a contractor (Security less than 20 nos.) without having a principal employer registration from labour department.
If can then under which rule or section.
Thanks & Regards,
Krishan Kant Sharma

From India, Bharuch
Seasoned Ir Professional
Partner - Risk Management
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V. Balaji
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Labour Law Consultant
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For engaging contract labour of less than 20 numbers, you need not take registration under the Contract Labour (R&A) Act. But the process of taking such registration is not that much complected and since it is a one time registration I would suggest that you should take contract labour registration even if you propose to have only less than 20 contract labour at present. Similarly, it is always advisable to grant contract to engage labour to licensed contractors.

From India, Kannur
V. Balaji

This is OK.
How about a contractor applying to the Labour Department for registering himself with the authority when his strength is 5 or less than 5. Is there anything in the CLRA Act that restricts him to go for registration under the Act (as his sterngth is less than 20) ?

From India, Madras

The application for registration shall only mention "proposed to engage" and not the actual number of contract labour to be engaged. It is to be interpreted as we propose to engage around 21 contract labour in the coming period and it is not necessary that we should engage this much of labour.

From India, Kannur

Dear All,
I am having a difference of opinion on this matter.
According to my understanding, the principal employer has register the contractor even if the principal employer is engaging one contract labour.
The contractor need not apply for registration if the contract labours are less than twenty.
Please check and once again.

From India, Bangalore

Dear Friends,
As i know if an contractor is having above 5 labors he need to apply for registration under Contract Labour Act. As well if an employer wants to engage a Contractor in his estb. / factory employer also has to apply for the registration.

From India, Hyderabad

Dear All,
The Contract Labour Act, doesn't provide Registration to PE if the contract employees are less than 20. If you mention in your application as CE proposed to be '20' then you'll be granted CLR.
Similarly, Contractor will also not get CLL in case his employees on PE's site is less than '20'. But, when the PE is declaring the proposed CE as '20', then Contractor will have to apply and he'll get the license.

From India, Mumbai

In case a principal employer is engaging more than nineteen total contract workers at any one site, irrespective to whether from one contractor or many, the principal employer has to get registration under clra act.
and in case if any of the contractor is engaging more than nineteen employees at one site of principal employer, the contractor has to get license for the same and will get license on the registration
number of Principal Employer.
However every state regulate CLRA act in differently like in some states instead of twenty the number is five also. so need to check upon the state rules and notifications also.
Anurag Lakhotia
Industrial and labour law consultant.

From India, Delhi

Hi All,
Security Services Fall Under the Private Security Agenciest Act 2005.As regards to engaging the manpower under contract,If the contract is for more that 20 Employees Licence needs to obtained by the contratcor provided PE issues the copy of agreement and form V.In Maharashtra Security services are Governed under Maharashtra Private security guards (reg of Emp & Welfare) Act,1981, Where in the license is not applicable but registration under the guard board and exemptions under Sec 23 of MPSG(Reg Of Emp & Welfare) Act 1981,are required.

From India, Vadodara

Dear Mr KK Sharma,

I think there is some confusion in our minds between the terms ‘Registration’ and License’.

There need not be any doubt that once you engage a contractor to provide contract labour for your establishment you become the Principal Employer (PE) and have to mandatorily register with the labour department. In the application you have to indicate the number of personnel you wish to engage.

The contractor, on the other hand need not register himself. However, if he provides 20 or more personnel at the site, he needs to apply for a ‘License’. It is done by submitting a Form V obtained from the PE. The application for the contractor’s license must be accompanied by a copy of the PE’s registration certificate in which the name of the contractors firm and the number of employees to be engaged are clearly indicated.

Hence a PE’s registration becomes mandatory, if he wishes to employ contractual labour through a contractor. The contractor need not register but he needs to obtain a license if he deploys 20 or more personnel. This is relevant to separate PEs. To clarify, If one contractor is serving more than one PE, he has to follow the procedure for each PE separately i.e. one license will not do for all PEs.

I hope that clears your doubt.

Good luck.

Colonel Gahlot


From India, Delhi

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