Industrial Relations And Labour Laws
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Dear All

I am working in a manufacturing company in Chennai in IR department looking after administration of Contract Labour Act. I request fellow professionals to clarify and guide me in the following relating to contract labour act:

We have obtained Registration Certificate from the Factory Inspectorate for engaging contract labour. The contractors have also obtained licence to work as a contractor in the following areas on a daily basis :

• Packing

• House keeping

• Material movement

We also engage certain contractors who are not included in the Registration Certificate to carry out the following work :

• Cleaning of fume extractor

• Repairing the roof of the factory to arrest leakage of rain water

• Painting of machineries periodically

• White washing and painting

• Chair repair

• Various annual maintenance contractors who come to the factor to do periodical preventive maintenance

Most of the above work would take only a day or two to be completed.

Please advise whether these contractors also should be included in the Company’s Registration Certificate issued by the Factory Inspectorate and the respective contracts should also get licence since the nature of work is of intermittent and casual nature.

In the event of serious accident, how should the occupier and the manager be protected from prosecution

From India, Chennai
Though RC by the Principal employer is one time certificate, you can get the new contractors for the new type of work included in it by filing an application. It is usually amended in the same RC itself. In the similar way, the contractors can also amend the licence by adding new work.
If you are giving the new work (painting etc) to a contractor who is expected to engage less than 20 workers, then you need not include the same in the contract registration. Similarly, you need not issue form V to such contractor who seldom requires any licence since the number of workmen going to be engaged by him is less than 20.
I was having the impression that contract labour registration certificate and licence are issued by Labour Department (either Central or State) and not by Inspector of Factories and Boilers. The former are the appropriate authorities under Contract Labour (Regulation and Abolition) Act, I presume. Please correct, if I am wrong.

From India, Kannur
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From India, Madras
Any contarctor having more tahn 20 labour working or having license needs to be mentioned in FORM-1 (Registration Certificate of Principal Employer) otherwise will be trated sam contractor.
Mritunjay Nath Sahu

From India, Vadodara
Dear Karthik, In addition to what Madhu Sir has explained, the Certificate of Registration makes no mention of what are all the activities being outsourced. So long as the max. number of workmen being employed is not exceeded you need not require amendment of certificate. However, it is clarified that the duration of employment, be it a day or two, does not matter as regards registration is concerned. Like for instance when the Labour Inspector comes and verifies, even if the excess labour is deployed for that day alone, still it would be violative of the Act. As pointed out by MadhuSir, an application for amendment of Certificate, could be submitted upto thirty days of such change. KK
From India, Bhopal
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@ Karthik, in addition to what @madhu, @mnsahu and @kknair have contributed, please note that the initial onus still lies on the Principal Employer and further in the event of sanction of prosecution by the appropriate authorities, then the manager or occupier can avoid being penalized if they are able to clearly establish that they had delegated the power and authority to some other competent person employed by them for this purpose. - hope this clarifies.

From India, Bangalore
Dear Sir
Thank you for your valuable question Am not much knowledge though hv exp in HR as most of the genius has replied
If yr workmen are below 20 and you are engaging them for 1 or 2 days work you can amend the existing agreement accordingly with the employees risk coverage by way of workmen loss policy with the insurance company this is also one way of employee welfare as well as you can safeguard the employer

From India, Chennai
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