Madhu.T.K
Industrial Relations And Labour Laws
Saswatabanerjee
Partner - Risk Management
DilipSN
Labour Law Consulting & Outsourcing
Jkct15
Deputy Manager - Hr
+3 Others

Dear All
As per Contract Labour Act it apply to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen
contract Labour license for one year I.e from (01.01.2013 to 31.12.2013) in Maharashtra state. if XYZ contractor having 100 labour & has obtained CL license for the year 2013 (01.01.2013 to 31.12.2013) but after 31.12.2013 labour has reduced from 100 to 15 i.e on 01.01.2014 has only 15 contract labour.
Now it is mandatory to renew contract labour licence for the year 2014 to the contractor even labour reduced from 100 to 15.
Regards
Sacheein
Hi
Yes he has to renew his contract with the current number of employee employed by him. The license has to be renewed every year inspite of number of employees employed by whether incresed / decreased.
I think the concern of Sacheein is that if the number of employees falls below 20 (the contract workers now going to be engaged is only 15) should he require to take a licence?

Though I have not come across with such a situation, referring to the CLRA, I think it is not mandatory that he should take a licence, because when the Act itself says that licence is required only when the contractor engages 20 or more persons. And, a licence is once issued for a period of one year and it is not that a contractor once covered by the Act will continue to be covered, like that of PF, ESI or Gratuity Acts wherein the dropping of the minimum number of employees will not make them out of cover from the provisions of the Act. Similarly, a contractor can take licence based on form V issued by the Principal employer only and for the principal Employer also the contract is time specific and unnecessarily he would not issue form V, though giving form V and making his contractor a licenced one is always good.

Therefore, I feel that the contractor need not renew his licence in respect of this particular Principal Employer.

Regards,

Madhu.T.K
You have to check the State Labour Rules as the minimum number of contracted personnel to take contract Labour license differs from state to state as states are allowed to change the minimum number of contracted personnel to take contract Labour License .
However in Central Govt. undertakings or in undertakings where Central Govt. is in majority the minimum number of contracted personnel happens to be 20 .
Hi Sacheein,
There is no need to renew the Contract Labour License, need to serve the application to Asst. labour Commissioner that in the year 2014 we have only 15 employees on contract are working, and surrender the said license.
Regards,
Dilip Nandanwar
For Vidarbha Industries
(Labour Law Consulting & Outsourcing, Payroll Outsourcing & Mgmt.)
Navi Mumbai
86555 76111
Hi Sacheein,
There is no need to renew the Contract Labour License, need to serve the application to Asst. labour Commissioner that in the year 2014 we have only 15 employees on contract are working, and surrender the said license.
But, your principal employer has to be amend their RC under Maharashtra Contract Labour Rules-1971 accordingly. Then no need to renew the license for the year -2014.
Regards,
Dilip Nandanwar
For Vidarbha Industries
(Labour Law Consulting & Outsourcing, Payroll Outsourcing & Mgmt.)
Navi Mumbai
86555 76111
attribution https://www.citehr.com/483258-applic...#ixzz2s9qMfRWe
Hi Madhu,
I think since the act says "20 or more workers in the preceeding 12 months", and he has more than 20 workers during the preceeding 12 months, he will have to renew the license. When 12 months have passed without having 20 workers, he need not renew the license.

Hi
I am an individual, engaged with a software company in a SEZ @ Bhubaneswar as a consultant. I invoice for my services every month. Does CLRA apply to me, too?
Thanks and Regards
Mithil
Independent contractors who are not governed by the service rules of the company, like working hours, leave rules, dress codes, etc are not employees and therefore, the CLRA will not apply in such cases. At the same time, if you work exclusively for an establishment and you are expected to be there in the office of the establishment from certain time till certain time, then your role is not as a consultant(or you are just a consultant for name sake or by designation) but your relationship with the employer is that of servant and master and you will come under the purview of employee. Again, in such case also if you are getting salary directly from the employer you will never be under the purview of CLRA Act. at the same time,if you are appointed by some other agency to work with an establishment then you will be a contract worker coming under CLRA Act
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.

Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™