Saswatabanerjee
Partner - Risk Management
9871103011
Private Consultant On Labour Laws
+2 Others

If any contractor is providing services of labor supply to different organisation at different locations in same state. but number of labor are below 9 at each location, but total number of labor altogether is greater than 20 adding all supplied labor to diff. organisation by single contractor. Then this contractor shall have labor licence or not?
regards
11th August 2013 From India, Delhi
As per rules: No, but if he wish to remain in bussines: Yes. Nowdays many employers seek prior license.
11th August 2013 From India, Moradabad
Dear Rathor,
The CL(R&A) Act applies to every establishment in which 20 or more workmen are employed or were employed on any day of preceding 12 months as contract Labour and to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.
We need to assess whether the establishments to whom you are providing services of labor supply are employing 20 or more contract Labour which includes yours plus other contractors. In that case, the PE of that establishment shall have to take registration from the Registration officer of the Area.Since you are presently supplying contract Labour,the numbers of which is below 9 at each locations, you need not take licences from the licensing officer but mind it if any day your numbers becomes 20 or more in any of the establishments,whom your are dealing, you shall have to obtain a licence.
BS Kalsi
Member since Aug 2011
12th August 2013 From India, Mumbai
No.If the contractor is having more than 20 workmen employed by him ,he shall take license irrespective of the fact that he is supplying less than 20 workers to each PE. The PE need not take registration if the total number of his workmen engaged through all his contractors is less than 20.
Varghese Mathew
12th August 2013 From India, Thiruvananthapuram
As per the section you have quoted, it applies to a contractor who has more than 20 workmen, not 20 at any single location. So the contractor is very much covered in the act.
The requirement of license depends in the state rules, so the state rules may provide for incense only if he has more than 20 in each location.
According to me, it seems that he should take a license as he has more than 20 workmen.

14th August 2013 From India, Mumbai
My dear Mathew,

I am sorry to contradict on your point. what you said is that "if the contractor is having more than 20 workmen employed by him ,he shall take license irrespective of the fact that he is supplying less than 20 workers to each PE. The PE need not take registration if the total number of his workmen engaged through all his contractors is less than 20". My understanding is that if a contractor is deploying 9-10 workmen in different establishments,even though the total numbers comes to more than 20,he need not take licence.

Now my query to you is if the Principal Employer has not obtain the registration certificate from the Registering officer of the area, whether he can still issue Form V to the contractor. If the contractor is supplying 9-10 workmen in different establishments,from which PEs,he should obtain Form-V to enable him to obtain the licence. Whether he should collect bunch of Form-V from all the PEs,for whom he is supplying the contract labour before applying for the licence.

I would request my seniors as well to help me in clearing my doubts.

BS Kalsi

Member since Aug 2011
14th August 2013 From India, Mumbai
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