Pan Singh Dangwal
Private Consultant On Labour Laws
Sr. Executive- Hr
Thanks for posting a nice and detailed guide lines for the Principle Employers engaging contract labours. Main problem comes when the officials of establishment shows inclinations towards some of the selected contract labours, who are attached to them or are considered hardworking and obedient workers. Even I have come across many cases where the contractor changes but the same set of workers continue to work for years together. When on a fine day the management decide to disband the contract labour system, a big labour problem start waiting for the PE. There is nobody to come to their rescue and help them. Ultimately the PE has to face the whole drama.
Member since Aug 2011
3rd February 2014 From India, Mumbai
4th December 2015 From India, Mumbai
In reference to your query, it is informed that the principal employer is required to obtain registration under section 7 of the Contract Labour (R&A) Act in Form No.1 (in triplicate) from the Registering Officer of the area in which the establishment is located. The said Form shall be accompanied by demand draft showing the payment of prescribed fees for payment of registration, which depends upon the number of contract labour intended to be engaged.
Once an employer has obtained the certificate of registration, all the contractors who are having 20 or more persons working for them, it shall be obligatory on their part to apply in Form IV in order to obtain licence from the Licencing Officer of the area. Accordingly the principal employer will issue Form-V (Form of certificate by the principal employer) to the contractor(s) for obtaining licence.
The principal employer shall also ensure that the contractor under him renew his licence every year.
Member Since August, 2011
2nd January 2017 From India, Mumbai
#AnonymousSir with due regard ,pl guide me what to do in positon- as PE
A is PE contracting B to produce coal in ug mine .
B engaged his own 200 worker.
And 19 worker's 10 groups are engaged through petty contacters.
What's r CLRA act effect on PE
29th March 2017 From India, Bokaro Steel City
With reference to your query, it is imperative on the part of the principal employer is to obtain registration under Contract Labour (R&A) Act from the Registering Officer of the area in which the establishment is located. Since 'A' is giving contract to B person to produce coal, who is engaging his own 200 worker and in turn B has given 10 petty contract engaging contract labour below 20. Now in this particular case B is required to take licence from the Licencing Officer of the Area for engaging contract labour 200. If any petty contractor engages worker above 20 on any day then he shall also be required to obtained licence from Licencing Officer. For better clarity please have a perusal of definition of contractor under the Act, which is given below:-
"contractor", in relation to an establishment, defined as a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labor or who supplies contract labor for any work of the establishment and includes a sub-contractor;
The last sentence of the above definition is very important, which includes 'sub contractor' under its ambit.
Member Since August, 2011
2nd April 2017 From India, Mumbai
My query is:
If a contractor (who has employed his 60 labour workers in Establishment A and he has obtained labour license for that contract.) is appointed by Establishment B where 15 labour workers are required, does the contractor need to apply for another Labour License for Contract of 15 workers in Establishment B?
14th April 2017 From India, Thane
In Establishment B, the contractor is not required any Labour Lcense,
Principally, the Act is applicable:-
“Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour. Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen”.
However, in case of Maharashtra the word “20 or more workmen” has been substituted by “50 or more workmen” (notification dtd. 05th Jan 2017).
But if the Establishment B is engaged many contractors (in the same place for different kind of work) and the total strength is 50 or more than he has to get the RC from the Labour Office and has to mention different contractor’s name in the specified format.
Learned member can put more inputs on the matter.
15th April 2017 From India, Delhi
In reference to your query supposing that if the same contractor is engaged for Establishment B where 15 labour workers are required, he doesn't need to apply for another Labour License as the Contract labour are less than 20. But if on any day, the number touches 20 or more, he will be under obligation to obtain licence from the Licencing Officer of the area.
Hope the position is clear to you.
Member Since August, 2011
16th April 2017 From India, Mumbai
I am working in a sales office in Delhi controls Northern states ( Punjab, Raj,Harayana etc) our HO is Mumbai, as part of sales team we have engaged merchandiser through outsourcing agency for doing the Marketing . The No of employees were more than 10/20 in each location.
1 Will the Contract labour R&A applies to us.
2 Shall we have obtain labour licence as contract labour act in each state or only where the No exceeds 20
3 There is no supervisor and they directly work under our sales team member is there any issue in this record
Please help me
22nd June 2018 From India, Thiruvananthapuram
he given contractor only 6% profit is
then how can contractor have payment to gratuity
then contractor is responsible this ? (gratuity)
if no so how can remove this problam
11th January 2019 From India, Lucknow