Industrial Relations And Labour Laws
Industrial Relations
General Manager-hr
Employee Establishment & Administration,
Head-hr & Admin
Srinath Sai Ram
Hr Manager
Anilrsv Sharma
Statutory Compliances, Contract Labour, Pay
Hr Hd Of A Thermal Power Plant
Suraj Biswal
Hr Officer
Commercial Law, Mining Law, Service Law.
Hr Executive
+4 Others

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Dear Sir, In Contract Labour Act , We know that Form V Must be issue by the Pricipal Employer to the Contractor for obtaining the licence, I want to know that who is principal employer, for being a Principal Employer What the eligibily we require. if a X Contractor keeping a subcontractor Y then under him then is X contractor can be a Principal employer? Suraj Biswal
From India, Bhubaneswar
in the above topic u can find format of FORM V.. as far ur query is concerned ,, i need some time...
From India, Pune
This is as per CLRA "Principal Employer" means- (i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf, (ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named. (iii) in a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named, (iv) in any other establishment, any person responsible for the supervision and control of the establishment.
From India, Delhi
If you engage some workers on contract basis through a contractor, you are the principal employer. If company Z is employing some workers through X, the contractor, between them Z is the principal employer and X is the contractor and whereas this X has given sub contract to Y then between X and Y, X becomes principal employer. Therefore it is relative and not absolute. Simply, principal employer is the employer for whom work is done by others. Regards, Madhu.T.K
From India, Kannur
Madhu TK
Sr. Member,
Super Moderator
Respected Sir,
In principle , I agrree with u view points .
But my question is that whether any contractor who has been given work order from Pricipal employer, the said contractor can issue issue form V to it sub contractor/s .
If yes,then :
A) without the RC of the said contractor for that particular project site
B) Without RC how it is possible .
Pl calrify my above points.
AK Sharma

From India, Mumbai
If you follow the CLRA Act you can say that at each time whenever a sub contract is given a new contract takes place and the formalities as are required to be followed will have to be followed in respect of the persons involved. Now in practice also if a contractor wants to sub contract any other, he has to obtain RC as Principal employer and issue the subcontractor form V to enable him to get a licence. If not, no sub contract will take place. On the other hand, if none of the sub contractor employs 20 employees then the question of licence does not arise.

From India, Kannur
Dated : 8th July,2011

Madhu TK

Sr. Member,

Super Moderator

Respected Sir,

In refernce to ur views on my clarification

My straight & simple question is that whether any contractor (from whom work order is directly given by Principal employer),who( i.e. said contractor) in turn is further sub letting the job to his sub contractor/s and that said contractor is not having his RC under the CLRA Act; is it practically feasible to give Form V to his sub contractor. Without RC , how labour authority can issue labour licence.

Secondly , any contractor who has been engaged for doing the assigned job at any particular location in Principal employer premises , how the said contractor can get RC from labour office, as it is prime criterion that contractor must have his own permanent office or building in that particular location . It is crystal clear that the said premises belongs to Prinicipal not of said contractor.

In my opinion , if Pricipal employer rectifies his RC and mention the name of said sub contractor/s in that RC , the Principal employer can directly issue Form V to to the said sub contractor and accordingly the said sub contractor can apply along with Form IV to Labour office for obtaining labour licence. Pl calrify whether I am right or wrong .

Please enlighten us , since the matter have been aggravated my self not getting any amicable and meaningful solution from any corner ,

AK Sharma

mail id :

Cell:+9196194 99687

From India, Mumbai
You are right, no doubt. But if the contractor does not possess an office and gets an RC for engaging contract labours, he can not sub contract it to some other person. The question of issuing form V to sub contractor by the Principal employer himself does not arise and if he does so the relation between him and the sub contractor will be of principal employer and contractor and not subcontractor.

From India, Kannur
Dear Mr.A.K.Sharma
It is not mandatory under the Contract Labour(Regulation and Abolition) Act that the Contractor should have his permanent office or building in the location in which he undertakes contract work. Sectiion 35(m) of the Contract Labour (Regulation and Abolition) Act gives power to the appropriate Governments to make rules for carrying out the purposes of the Act and sub section (m) of this section gives power to prescribe the form of registers and records to be maintained by principal employers and contractors and sub section (p) of this section gives power to the appropriate Government to make rules for any other matter which has to be or may be prescribed under this Act. By virtue of this power the Central Government has framed the Contract Labour(Central) Rules and the various State Governments have also framed rules under the CLRA Act. You please see Rule 80(1) of the Contract Labour (Central) Rules. I have taken this Rule as it has all India applicability and rules framed by other States also will have similar provisions. According to Rule 80(1) of the Contract Labour(Central) Rules, All registers and records required to be maintained under th CLRA Act and rules, shall be maintained complete, uptodate and unless oterwise provided for shall be kept in an office or the nearest convenient building within the precincts of the workplaceor the nearest convenient building within the precincts of the workplace or at a place within a radius of three kilometres. There is an option to keep the statutory registers in a place within three kilometres from the place of work. If that option to keep the registers away from the place of work/precincts of the establishment where work is done, it cannot be insisted that the contractor should have his own permanent office or building in the premises of the principla employer. You also see the form prescribed for applying for a license by the contractor.You also see Form VI of the Contract Labour (Central) Rules. This is the form of license to be issued to the contractor by the licensing authority. This form has an annexure and this annexure contains conditions to be followed by the contractor. This annexure to Form VI does not impose a condition that the contractor should have his permanent office or building in the premises of the Principal employer. The licensing officer cannot add his own conditions to the conditions already prescribed in the annexure as this form is a Rule framed under a law and cannot be altered in any way by an official and could be altered only by the appropriate Government. You also please see Form IV of the Contract Labour(Central) Rules. This is the prescribed form for applying for a license by the contractor. This form does not ask the applicant/contractor to say whether he has a permanent building or office in the premises of the principal employer. I think that I have fairly responded to your question. In case you differ from my views you are always welcome to do so. But indicate the authority based on which you differ from me.

From India, Madras
Dear Friends

Please leave all the laws. Understand the concept in simple English

1. Mr. A is having some land. Mr.A want to develop some commercial buildings in his land. He approaches Mr. B and made an agreement for doing the construction work in the said land. Here Mr. A is Principal Employer. Mr.A has to obtain Registration Certificate from Labour Commissioner Office of the concerned area by submitting the Land Document copy, Necessary Approval for constructing the commercial building from appropriate authority, Application for Registration of Establishment in Form I, Requisite Registration Fee (fixed by the appropriate Government) in which Mr. A has to mention the Contractor Mr.B's name, who is going to deploy the contract employees and workmen to accomplish the work. Then Mr. A will give a Certificate to the contractor Mr. B "Certificate from Principal Employer" (Form V).

Now Mr. B's work will start. Mr. B has to apply for Contract Labour Licence with the following document

(a) Certificate from Principal Employer (Form V)

(b) Registration of Establishment Certificate Copy (Form II) or Application for Registration of Establishment copy (which is submitted by PE) (Form I).

(c) Work Order or Letter of Indent issued by the Principal Employer to the Contractor.

(d) Licence Fee paid Challan (fixed by the appropriate Government to be paid at treasury)

(e) Labour Security Deposit (No of labourers planned to engage multiplied by the Security Deposit Amount fixed by the appropriate Government)

(f) Form IV (Application for obtaining Labour License.

After perusing your submitted all documents, Labour Commissioner Office will issue necessary licence for the prescribed period maximum of 1 year duration and further it will be extended on receipt of your application in Form VII.

The Contractor cannot give form V to any sub-contractors as the contractor has not obtained and cannot be obtained the Registration of Establishment because they are not the occupier of the said property.

Hope I have cleared your doubts.

Further more any querry, never hesitate to seek assistance.

From India, Kumbakonam

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