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Dear Seniors,
I am working in a construction company where we have taken labour licence under CLRA Act for 1000 labours now our job is on completion stage and at present we have only 100 workers working with us at our project site. Our work will continue for another two or three month in the next year. for this we have to renew our licence.
Problem is this that we have taken licence for 1000 Nos of labours & the present strength is only 100 Nos. I want to know whether there is any provision in CLRA to get the labour licence renewed for only 100 Nos of labours. As per Labour Dept. we can increase the labour strength but can't reduce the labour strength in Licence.
Seniors valuable advice is required immediately since I have to apply for renewal of licence in this month itslf.
Thanks & Regards,
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Now you have to renew the Labour Licence. It is not possible to reduce the labour Strength. But if you get the Form VI B (Completion of Job) from your client, then you can prepare form VI A, attach the Original Licence and photocopy of the Labour Security Deposit Challan and submit to the Licencing authorities. Your licence will get cancelled and your security deposit amount will refunded to you.
Mr. Singh,
Its very simple just make a letter of decrease in your letter head,
after making decrease letter you have to submit form VII to labour office for reduce labour strength 1000 nos to 100 nos.
format given below:
Subject:- Decrease of Labour Strength in the Labour License
Dear Sir,
This is to inform you that we have applied for the license under the contract Labour regulation and abolition Act 1970 for 1000 Labours of our work at "COMPANY NAME AND ADDRESS". Our work scope will be decreased since January 2014, so we request you to please consider our revised application for decrease manpower from 1000 to 100 nos.
We are requesting you to kindly make necessary changes in your record and do the needful
Thanking You,
Yours faithfully,
Seal & Authorised Sign
Any query feel free to contact us
Abhay SIngh
You need not to worry about the decrease in number. You can employee upto 1000 workers. Bill for actual number is passed and staututory deduction are made amd deposited with PF and ESI authorities.there is no other liabilities. In case licence is to be renewed you have to made fresh application along with form v issued by principle employer. Security amount shall be refunded after coalition of the contract. I request you to read the CLRA act.
S c gupta
Just as your labour strength of contract labour is 100 Nos., you need not to apply for New License. Just apply for the renewal of the license which you have for 1000 strength. It is always better to inform labour Depatment for decreased strength of labour. Just,file half yearly and annual Returns in time and keep Wages Register always available at work-site office.
----- Raj.
Dear P.K.Singh,
In my opinion, you have two options to overcome your problem, which are mentioned below:-
(i) you can go for renewal of your licence by apply in the Prescribed Form under the Contract Labour (R&A) Rules of your state keeping the number of labour same as mentioned in your original licence.In this case the fee will be the same as originally paid by you.
(ii) You can submit a report for completion of contract work in Form 6-B under CL(R&A) Rules and after obtaining a fresh Form-5 from the Principal Employer, can apply for a fresh licence for the reduced manpower.But in this case you have to either deposit fresh security amount in respect of the manpower you intend to employ or request the licensing Officer to adjust the Security amount already lying with him in respect of the old licence, provided he agrees.
The suggestion at (i) above is ideal & more appropriate with less hurdles.
BS Kalsi
Member since Aug 2011
Dear PK Singh,
You can reduce your labour strength to 100 along with the renewal. You may have to pay applicable renewal fees & amendment fees. But, along with the Form VII, you have to take the RC amendment copy from the Principal Employer. At some places, the issuing authority asks only a letter of confirmation from the Principal Employer about the reduction in numbers with an undertaking that they would amend the RC appropriately in the near future. Once satisfied, he will certainly amend the license. I have already done such amendment for two of my sites, one in Karnataka (From 1000 to 300) and another in Tamil Nadu (From 200 to 50).
P. Vathiraj
Dy Manager (P)
Aparajitha Corporate Services Limited
Dear Seniors,
Thanks for all your valuable replies.
Some of you have commented that the reduction of labour strength in labour licence is not possible but some of you have said that the licence may be reduced. If it is reduced is there any provision under the CLRA which we can refer.
As per Mr. Abhay Singh & Mr. P. Vathiraj statement it can be reduced without cancelling the previous licence.
Since our job is still not completed we are unable to get Form-VI-B from the principal employer.
Thanks & Regards,
Dear PK Singh,
Amendment of labour license is elaborated in CLRA Rules. For reference, I would like to inform you that Rule 28 under The CLRA (Central) Rules, 1971 talks about amendment of labour license. But, the amendment does not limit only to increase in strength but vice-verse is also allowed. But only thing which has to be kept in mind is to provide sufficient reason for such amendment to the licensing authority. One such supporting evidence is the RC amendment copy of Principal Employer or an undertaking letter from PE as regards to your reduction in labour strength.
However, you may not claim the security deposit instantly and have to wait till the completion of the project and as suggested by other members, you may submit the application along with Form VIA and Form VIB and the original license to licensing authority for seeking necessary refund of security deposit.
P. Vathiraj
Dy Manager (P)
Aparajitha Corporate Services Limited
Dear Vathiraj,
Whereas I do not dispute your interpretation of Rule 28 under the Contract Labour (R&A) (Central) Rules, 1971in your trailing mail but equally we can not ignore the fact that Sh PK Singh has mentioned in his first mail that "As per Labour Dept. we can increase the labour strength but can't reduce the labour strength in Licence". In consideration of the same, I gave him suggestion to go for renewal of the licence by apply in the Prescribed Form under the Contract Labour (R&A) Rules of his state keeping the number of labour same as mentioned in your original licence.
You will appreciate that Sh PK Singh reiterated in his subsequent mail that their company is unable to get Form-VI-B from his principal employer in view of the fact that their job is still continuing.
What you have suggested will be somewhat cumbersome with saving of marginal amount of lincence fee.
BS Kalsi
Member since Aug 2011
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