Dear All,
In our establishment,we have weigh Bridge for which our commercial department awarded annual maintenece contract(AMC) to a agency for which almost 10 to 11 person staying nearby our company for service the weigh Bridge by that agency.These people are coming regularly inside the premises in oder to check the machine and other service related with the machine.Now my quiry is whether CLRA act and other labour laws are applicable to this agncy or not.

From India, Calcutta
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Korgaonkar K A
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In respect of AMC, provisions of CLRA Act will not apply. AMC is an arrangement wherein the person giving the contract does not know who are going to be deputed for serving and also he is totally ignorant about how many are going to be deputed for the purpose. That means the employer has no control over the persons engaged by the AMC holder. But my concern is why he is deputing this much persons and that also on a daily basis. Is it so required?

From India, Kannur
korgaonkar k a

Dear Shri. Madhu ji,
With due respect to you Sir, I differ with your views. When 10-11 persons visit regularly to check the machin and to do service related jobs, in this case it is not an AMC even you call it as an AMC. Certainly provisions of CLRA and other applicable labour laws are applicable to such AMC beyond any doubt. Since such employees are less than 20, the contractor is not liable to obtain labour Licence but the PE is liable to enroll the name of contractor in his RC. Presuming this CLRA is applicable to the establishment.

From India, Mumbai
A K Lal
Dear Mantu
I agree with the view of Mr.Keshav, your case will not fall in the AMC category . As stated by you the said agency people are coming on regular basis.It is better you register the the agency under provisions of CLRA Act immidiately.
Ajay Kumar Lal

From India, Nasik

Keshav, My concern was shown in my post. Please read that also because engaging so many people that also on daily basis is not a good sign whereas AMC will not come under CLRA Act. Madhu.T.K
From India, Kannur

AMC Means in case of any operational difficulties and maintenance requirement, the AMC people will come and do the necessary repair/maintenance work and after rectification they will guide the procedure about the operation method of the concerned machinery/equipment, which does not need to follow the CLRA Act as said by Mr. Madhu.
But if the company has contracted an agency for maintaining the weigh bridge is surely comes under CLRA Act as said by Mr. Keshav.
Because the maintenance has been contracted by the employer to some agency and not the Manufacturer. The concerned agency is doing the maintenance/operational part regularly by keeping more than 10 workers. Hence the PE has to obtain the Registration Certificate of Establishment.

From India, Kumbakonam

AMC jobs will not attract Contract Labour engagement activity. Whereas in this case, the employees are coming regularly to do activity, in such cases it is mandatory that AMC party should have proper Contract Labour registration with labour epartment and should have Employee Comensation Policy to coverage of risk. We should have to check those documents before engagement of such people in our premises.

From India, Chennai

I agree with Mr Madhu.The definition of 'contract labour' in the Act shows that a person is deemed to be a contract labour only if he is hired by or through a contractor.If no employee is hired Through a contractor,but only a work is given to contractor by way of contract for service with no control by the PE on the number of workers.manner of work of each such person,and no control or supervision of person by PE,no role on recruitment of employees ,then CLRA act will not be attracted.Instead if contractor is only supplying person to the PE then the Act is applicable.This my opinion.

From India, Thiruvananthapuram
Vivian Chandrashekar

Hi All,
From Employers point of view what Mr. Madhu says is right. But from employees point of view, what happen if there is an Industrial Accident or employees not compensated properly. Then the PE role comes, Labour Legislation will apply. Have some risk policy what Mr. Ram has stated directly or through your Contractor. In order to keep yourself free from tension, it is advisable to apply a Licence under CLRA Act which is very simple.

From India, Bangalore

Having a license will not protect u from liability of accidents.Ensure that the employees of contractors are covered under ESI or invoke section 12 of EC Act. VARGHESE MATHEW
From India, Thiruvananthapuram

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