Industrial Relations
Labour Laws & Ir
Korgaonkar K A
[email protected]
Labour Welfare
+2 Others

We are engaging certain number of contract labour in our company through various contractors ( we have registration for our company under CLRA, Act 1970). One of our contractor engaging sub contractor for part works. Sub contractor also engaging more than 20 contract labour, the main contractor obtained labour license from concerned authority under CLRA. Whether subcontract required to obtain license from the said authority? if so what is the procedure and what are documents required ? Who is the principle employer for sub contractor? Who will issue Form- V to sub contractor?.
From India, Mumbai
The contractor will issue the Form V in which the Principle Employer will countersign.
From India, Kumbakonam
Dear Bhaskar (Boss) ji,
With due respect to you Sir, I would like you to review your reply in terms of followings:
CLRA Act does not defined the term Sub-Contractor.
CLRA Act defined the term Principal Employer.
CLRA Act defined the term Contractor which includes Sub-Contractor(s).
Title of Form V is Form of Certificate by Principal Employer.
If the Contractor covers the strength of employees by his Sub-Contractor(s) in the licence obtained by him (Contractor), is / are the Sub-Contractor(s) required to obtain separate licence.
Your answer will be a guiding factor to HR Fraternity.

From India, Mumbai
Just want to add one point, if sub contractor name is included in Registration Certificate of Principal Employer then PE need to issue Form V to sub contractor for obtaining Labour Licence.

From India, Surat
If the contractor secured the contract want to do only supervision and hand over the entire job to the sub-contractor, then obviously the sub-contractor must obtain the CL License.
From India, Kumbakonam
Under the Contract Labour (R&A) Act 1970 there is no word like sub-contractor. However as a principal employer we must see whether the contractor has taken prior permission for such deployment or his contract agreement is permitting to deploy sub-contractor . As per the Act the sub-contractor having the same footing like a contractor. In that case from V will issue by the principal employer on request of the contractor. The principal employer will take all liabilities of the contract labour engaged by sub-contractor also. For any compliance under the Act contractor will come to picture as he has engaged the sub-contractor.
Sitansu Rath

From India, Delhi
Dear Sitansu ji, Please read the definition of Contractor as defined in Sec 2(c) once. This definition has a word - sub contractor.
From India, Mumbai
Only Principal employer will issue the Form V. — — — — — — — — — — — - Pon
From India, Lucknow
Hi partners,

According to me since contractors includes subcontractors as well hence following option is available.

1. Principal Employer can issue form-V to the main contractor and the main contractor should include the name and number of the employees employed by the sub-contractor while applying for labour license. Only thing is that there should be a valid sub contract agreement between the contractor and the subcontractor.

2. Principal Employer can issue form-V to the sub contractor provided the name of the sum contractor is included in the principal employers certificate since as per the definition contractors also includes sub contractor and in the eyes of principal employer contractors and sub contractors are one and the same.

Since the principal employer is responsible for any wrong done by both the contractor and the sub-contractor, hence the end result will be the same whether he gives the form V to the sub contractor or main contractor or if the main contractor gives form-V to the sub contractor as far as principal employer is concerned.

From India, Kochi
Any responsible, designated/ or authorized employee can be delegated for this purpose on behalf of the principal Employer. While issuing form V he/She (Authorized employee) should verify issued work order in detail( i.e Specific job, validity period of the contact, strength of the maximum manpower to be deployed and deployment any sub-contractor with its provision/permission under the issued work order etc.) .
Under the Contract Labour Act -1970 , there is no word for sub-contractor. If sub-contractor will be allowed under any case the footing of the sub-contractor will be the same footing as contractor and deployed manpower by the sub-contractor will come under the definition of the Contract Labour.
Sitansu Rath
Bhubaneswar (Odisha)
Cell No 919338715427

From India, Delhi

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 Cite.Co