Dear All,
I need clarification to a simple doubt.
A company, ABC enters into a contract with another company XYZ to provde Services to it. In this case, XYZ becomes the contractor, and ABC is the Principal Employer. Right?
Further to this, when XYZ engages persons directly and also through other contractors, say PQRS who is the Principal Employer for the PQRS contractors?
Why I am asking this is, I need clarity on from whom we need to take Form 5 if we are XYZ and of we are PQRS respectively.
Please help !!!!
From India, Hyderabad
I need clarification to a simple doubt.
A company, ABC enters into a contract with another company XYZ to provde Services to it. In this case, XYZ becomes the contractor, and ABC is the Principal Employer. Right?
Further to this, when XYZ engages persons directly and also through other contractors, say PQRS who is the Principal Employer for the PQRS contractors?
Why I am asking this is, I need clarity on from whom we need to take Form 5 if we are XYZ and of we are PQRS respectively.
Please help !!!!
From India, Hyderabad
Dear Garima,
As per Contract Labour Act 1971 Rule 21 (2) :---- Every application for the grant of a liecence shall be accompained by a certificate by the principal employer in Form V to the effect that the applicant has been employed by him as a contractor in relation to his establishment and that he understakes to be bound by all the provisions of the Act and the rule made thereunder in so far as the provisions are applicable to him as pricipal employer in respect of the employment of contract labour by the applicant.
If u have any other information please share me to
regards
narayana
From India, Hyderabad
71As per Contract Labour Act 1971 Rule 21 (2) :---- Every application for the grant of a liecence shall be accompained by a certificate by the principal employer in Form V to the effect that the applicant has been employed by him as a contractor in relation to his establishment and that he understakes to be bound by all the provisions of the Act and the rule made thereunder in so far as the provisions are applicable to him as pricipal employer in respect of the employment of contract labour by the applicant.
If u have any other information please share me to
regards
narayana
From India, Hyderabad
Dear Garima,
Will you pl go through the definitions of the terms 'contractor'[2(c)],'establishment'[2(e)] and 'principal employer'[2(g)] provided in the C.L Act,1970?
A deep analysis of the above definitions would prove that-
(1)Since XYZ, in its unchangeable character of being a contractor in relation to ABC who is the principal employer, its further engagement of PQRS as a sub-contractor to perform the work it has already undertaken through contract labor and by definition a sub-contractor is also a contractor, ABC is the principal employer to PQRS also.
(2) Whether you are XYZ or PQRS, form V should be given only by ABC for whose establishment the contract labour are supplied.
From India, Salem
Will you pl go through the definitions of the terms 'contractor'[2(c)],'establishment'[2(e)] and 'principal employer'[2(g)] provided in the C.L Act,1970?
A deep analysis of the above definitions would prove that-
(1)Since XYZ, in its unchangeable character of being a contractor in relation to ABC who is the principal employer, its further engagement of PQRS as a sub-contractor to perform the work it has already undertaken through contract labor and by definition a sub-contractor is also a contractor, ABC is the principal employer to PQRS also.
(2) Whether you are XYZ or PQRS, form V should be given only by ABC for whose establishment the contract labour are supplied.
From India, Salem
Thanks a lot Umakanthan Sir.
So if an establishment registered under Shops and Establishments gets contracts from 5 different associations, we will apply for 5 different labour licenses under contracts act ? How important is this ?
From India, Hyderabad
So if an establishment registered under Shops and Establishments gets contracts from 5 different associations, we will apply for 5 different labour licenses under contracts act ? How important is this ?
From India, Hyderabad
Dear Garima,
Every Establishment should be registered under Shops and Establishment Act. Sub-Contractor will come under Contract Labour Act, 1971. S&E act and CL act is totally different
regards,
narayan
From India, Hyderabad
Every Establishment should be registered under Shops and Establishment Act. Sub-Contractor will come under Contract Labour Act, 1971. S&E act and CL act is totally different
regards,
narayan
From India, Hyderabad
Dear Garima ji,
If you execute any work in any establishment under contract with the help of 20 or more persons, you are liable to obtain licence under CLRA Act. If you execute such work in different establishments, in each such establishment you are liable to obtain separate licence.
From India, Mumbai
If you execute any work in any establishment under contract with the help of 20 or more persons, you are liable to obtain licence under CLRA Act. If you execute such work in different establishments, in each such establishment you are liable to obtain separate licence.
From India, Mumbai
Dear Umakanthan Sir,
Need your help about the Sub Contractors on the above thread, If ABC is the principal Employer for XYZ Contractor and if suppose XYZ has appointed Sub Contractors in that scenario ABC should issue Form V to Sub Contractors of XYZ, kindly revert with your valuable guidelines
Azim Charania.
From India, Mumbai
Need your help about the Sub Contractors on the above thread, If ABC is the principal Employer for XYZ Contractor and if suppose XYZ has appointed Sub Contractors in that scenario ABC should issue Form V to Sub Contractors of XYZ, kindly revert with your valuable guidelines
Azim Charania.
From India, Mumbai
Dear Azim,
I can understand your predicament; it is only because of the engagement of the sub-contractors by XYZ, the original contractor appointed for the work in its entirety by ABC,the principal employer.As I've already said in some other thread relating to C.L.R.A Act on the basis a case-law, one cannot be both a principal employer and a contractor.If the sub-contractors each employ 20 or more contract workmen on the part of the work assigned to them, it becomes the responsibility of ABC, the one and only principal employer of the 'establishment' to ensure their licensing by issuing formV.
From India, Salem
I can understand your predicament; it is only because of the engagement of the sub-contractors by XYZ, the original contractor appointed for the work in its entirety by ABC,the principal employer.As I've already said in some other thread relating to C.L.R.A Act on the basis a case-law, one cannot be both a principal employer and a contractor.If the sub-contractors each employ 20 or more contract workmen on the part of the work assigned to them, it becomes the responsibility of ABC, the one and only principal employer of the 'establishment' to ensure their licensing by issuing formV.
From India, Salem
Dear Umakanthan Sir,
Based on your reply to my query on the related thread, here in MAHARASHTRA more Particularly in Mumbai Assist Labour Commissioner is insisting for Work Order or Agreement Copy signed by and between Principal Employer from Sub Contractors of XYZ. Since ABC being the PE has entered agreement with XYZ and not with Subcontractors of XYZ How can ABC being the PE issue Work Order or Agreement copy to Sub Contractor of XYZ.
Kindly revert.
Azim Charania
From India, Mumbai
Based on your reply to my query on the related thread, here in MAHARASHTRA more Particularly in Mumbai Assist Labour Commissioner is insisting for Work Order or Agreement Copy signed by and between Principal Employer from Sub Contractors of XYZ. Since ABC being the PE has entered agreement with XYZ and not with Subcontractors of XYZ How can ABC being the PE issue Work Order or Agreement copy to Sub Contractor of XYZ.
Kindly revert.
Azim Charania
From India, Mumbai
Dear Azim,
I don't have the Maharashtra C.L Rules on hand.As per Rule 21(2) of the Central Rules, the form V has to be issued only by the principal employer.[ I don't think that the Maharashtra Rules will have any contrary provision on this aspect] So if you are ABC, what prevents you to issue form V? Is there any specific clause in the agreement between ABC and XYZ either prohibiting or authorising sub-contracting ? If so, ABC will have only two options - either strictly prohibiting sub-contracting or extending the agreement between ABC and XYZ to sub-contractors also by making suitable amendment in the original agreement.I think if form V and work order or endorsed copy of the agreement are given by ABC, the Licensing Authority will accept.
From India, Salem
I don't have the Maharashtra C.L Rules on hand.As per Rule 21(2) of the Central Rules, the form V has to be issued only by the principal employer.[ I don't think that the Maharashtra Rules will have any contrary provision on this aspect] So if you are ABC, what prevents you to issue form V? Is there any specific clause in the agreement between ABC and XYZ either prohibiting or authorising sub-contracting ? If so, ABC will have only two options - either strictly prohibiting sub-contracting or extending the agreement between ABC and XYZ to sub-contractors also by making suitable amendment in the original agreement.I think if form V and work order or endorsed copy of the agreement are given by ABC, the Licensing Authority will accept.
From India, Salem
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