Pragnaa HR Compliance Services
Pragnaa Shree Venture India Pvt. Ltd
Abhijit_Barua
Asst. Manager Compliance
J_son
Manager - Hr & Admin
+1 Other

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It has been noticed that there is an utter confusion about registration of an ‘establishment’ under the Contract Labour Act. Most people think that the Principal Employer has to get himself registered. Some other think that the Company (client) has to get itself registered as establishment. I feel that it is the establishment where the contract labour is employed or to be employed is required to be registered as an ‘establishment’ and the responsibility to get it registered is of the ‘Principal Employer’ of a Company who desires to get the work done through a contractor. For example, ABC is a company who wants to hire a contractor to build a ‘Mall’ at a place Y. The person X is the Managing Director (Principal Employer) of the company ABC. In this situation, X has to make an application to the Registering Officer to get the establishment i.e. ‘Mall’ registered under the CLRA. What is the opinion of the members of this forum?
Regards
jpratap

Yes, you are right. The Principal Employer has to obtain a registration certificate & the contractor has to take "License" under the CLRA.
Yes the establishment which employs contract labour needs to be registered and the Principal employer of the said estblishment shall apply for registration as is plain from the language of Sec. 7 of the CLRA Act.
B.Saikumar
HR & Labour Law advisor
Mumbai

Hi
Yes it is the Principal Employer who has to get the Registration Certificate and who has to issue Form V for the Contractor.
Contractor has to get the license enclosing other documents with Form V.
Regards,
Mary

Hi All,
Yes It's the Principal Employer himself has to take Registration Certificate first to deploy Contract Lab ours (under sub section (1) of section 7 and shall be made in triplicate ,in form-1 along with the demand draft showing payment of fees for registration) in his establishment and then contractors has to apply for Contract Lab our License to the concerned authority in form IV along with form V (issued by Principal Employer) and other supporting documents.
Regards,
Harchand singh
Kolkata

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