Controversy On Renewal Of Labour Licence - CiteHR
Hr, Legal Compliance & Er-ir
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Dear Seniors,
A company obtained a contract from Central PSU, for work to be completed and handed over to the state Electricity board, thru PSU.
The Labour licence is obtained on the form-V of State Elec board.
Now the situation :
1. The state Elec board is not registered with the Labour dept.
2. PSU is registered with Central labour Comm.
Hence the ALC - state rejected to renew
Please advise on the following :
1. How can this licence be renewed.
2. Which is the mointoring/ Governing authority
3. Is there a need to take a fresh licence from the Central Labour Commr.
3a. If yes, what would be the impact on the contract assigned. (commercial implications by the PSU for not abiding the contract provisions)
Please suggest..

The principal employer must have had applied to labour commissioner to drive in any contract labour employment in their firm. Therefore they have to nominate themselves to concerned labour commissioner office. Once they received permission letter then they willl be eligible to give form V to any contractor willing to carry out work on their premises.
Get in touch with the Labour commissioner office, talk with any clerk of licencing office, he/she will guide you well in the said matter.

Dear Mr. Srinivas,
As per CLRA, Only Principal Employer is authorized to issue Form V to contractor/ sub-contractor but before issuing Form V, he should get himself registered under CLRA and obtain Certificate of Registration for the Establishment.
Principal Employer is not suppose to issue Form V without obtaining valid registration under the CLRA, if the same is being issued then such Form V has no existence in Law.
You can take Form V from PSU and apply for fresh Licence with Central Authorities, in such a situation it will be a case of wrong authority instead of no licence and for wrong authority issuer of Form V shall be held responsible not you because as per contractual obligation you should follow instructions of your client.
Subsequently you can also take up suitably the matter with state authorities that how they had issued Licence when Form V was not valid, if issued they now they have no right to refuse renewal of the same.

Dear Sir,
(Mr. Kapil & Mr Harshil)
Firstly let me thank you for the time taken for my issue and the valuable advise given.
The home work is done and obtaining the licence from the central Labour authorities or renewing from the state labour authorities can be managed. Either by getting the state Elec board to register itself, or obtaining a fresh form V from the PSU is almost resolved.
Considering the legality and the operational difficulty arising in the jurisdiction, of both the authorities, viz.,
1. Few employees approach the state labour commissioner and a few the Central Labour tribunal for the redressal of grievances.
2. The monitoring and inspection of both the authorities, exercising the administrative rights
can an employer deny / oppose the validity of the jurisdiction of the particular authority with whom the licence is not obtained
Please advise

Dear Mr. Srinivas,
Site will be governed by the authorities who have issued Licence so i don't think there will be any dispute with respect to Jurisdiction.
It may be a case of wrong authority but not of no licence. Authorities can't blame you for taking licence from state as you have approached state authorities as Form V has been issued by State Electricity board. It is duty of Principal Employer to issue proper Form V for the purpose of obtaining Licence & Legally PE is responsible for this not you as a contractor.

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