No Tags Found!


Dear All,

In our factory (PSU), we engage contract labour on regular basis. For administering the contract labour matters, I have come up with following issues,

1. Contract labours are getting leave benefits (1 day for 20 working days), which is being paid to them by the contractor as leave encashment during final settlement. But contractors do not maintain separate leave register for that as CL (R&A) act has no provision regarding leave register. Factory inspector in their report is insisting that contractors must maintain a leave record (in form prescribed as factories act and rules).

2. In case factory inspector starts prosecution then what are the options available for the employer (occupier) for immediate defense.

3. Regarding licensing of contractors in case we issue 3 different work order to one single contractor for three different work in the same establishment during different times of the year as follows,

1st work order - issued in Jan 13 – housekeeping job – labours engaged 10

2nd work order - issued in Mar 13 – maintenance job – labours engaged 08

3rd work order -issued in May 13 – Blasting job – labours engaged 07

In that case as the contractor engaged/crossed 20 labours (10+8+7=25) in may 13, so he has to apply for license. In that case should he need to apply for 3 different license for 3 different jobs or he can apply for 1 license mentioning 3 jobs there.

4. In case a contractor engaging 5 workmen and thus not taken any license and completed the job. In that case, isn’t he liable to submit FORM VI A.

5. In case a company engaged for testing and inspection of machineries, where the job of testing & inspection is done by its own employees who comes to the factory on an average 2-3 days in a week, should the matter be regularized by CL (R&A) act.

guidelines on above cases are required urgently.



From India, Delhi
Industrial Relations
Hr Officer


Dear DG

Eventhough you are following the CL(R&A) Act the licencing authority is the same Factory Inspector. Hence you need to maintain the Leave with wages register and you can produce the records of payment of wages for the earned leave period alongwith the F&F Settlement as followed in other construction sites.

As a principal employer you might have issued the Work Order/Letter of Indent to the contractor. As the strength increased from May please issue the Form V (as per CL Act) and instruct the contractor to obtain the licence. Further you have to give amendment to your RC as adding the contractor name in your RC.

Please try to understand the purpose of any form. Form VI-A is nothing but commencement and completion of contract job to be submitted by the Contractor. If the contractor not obtained any licence then what is the fun of submitting the Form VI-A to the authorities.

For your query No 5 the subject is discussed earlier also. If the contract agreement is for maintenance by the manufacturer then it will be considered as Service and it will not come under CL Act. But if the same is done regularly by the Agency by supplying the manpower for maintenance, then it will be as like contract worker. Further the maintenance team normally comprises 2 or 3 members. So they need not to obtain any licence.

If you have any other doubt please seek.

From India, Kumbakonam
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.

Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2023 CiteHR ฎ

All Copyright And Trademarks in Posts Held By Respective Owners.