Query Regarding Labour License - CiteHR
Talent Acquisition Expert
Korgaonkar K A
+1 Other

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Dear Seniors,

We are into civil engineering consultancy & testing work and carry out work all across India. We often have small and big projects at various locations across India. We engage our own employees as well as contractor's labour for these sites. Some of these contractors do not have proper registration/license. Our sites may vary from 1 day to 2 years. My query is regarding Labour License.

1) Do we need to apply for Labour license for each project even if work is for a single day?

2) For huge projects we get Labour license but for small projects (say for a couple of days), by the time we

obtain the license, the work is over. In this case what are we supposed to do?

3) Does labour license vary from site to site if the work is carried out in different districts of the same state but

fall under different jurisdiction of labour department?

I mean, can we obtain a single labour license for a particular period and carry out work at different locations

in the same district or different districts during this particular period?

Request seniors to provide guidance especiallu Umakanthan sir of he happens to view this post

Thanks in advance

Tittli - If you need a labor license, then the best person is a labor consultant that can help you understand what license, when to apply, etc. If using outsourced manpower, you can either request for the license or a declaration from the contractor stating that the license is being applied for or has been acquired.
Dear Talentsorcerer,
Thanks for your response but it seems you have not understood my question at all, I am not looking for a labour license, I am looking at the nitty gritties (rules & regulations) of obtaining labour license.
Hope some other seniors will be able to respond.

Dear Tittli ji,

Your query is on licence under the Contract Labour Act. You are into civil engineering consultancy & testing work carrying out all across India. Your own employees and contract's employees are working on your project site. Your project site vary from 1 day to 2 years.

You are a contractor to the owner of each project site who is called as Principal Employer (PE).

The Contract Labour Act (CLRA) is applicable to the PE if he is having 20 or more workmen as contract labour on any day and to you (i.e Contractor) if you employ 20 or more workmen on any day (directly employed by you or through sub contractors).

Definition of 'workmen' under CLRA as under:

Section 2(i) :- 'workman' means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or unskilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include nay such person-

(a) who is employed mainly in a managerial or administrative capacity ; or

(b) who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

On the above background my answers to you question wise are as under:

You need to apply for labour licence if you have 20 or more workmen including the workmen through your sub contractors. Law says, you have 20 or more workmen even for single day Act is applicable to you and you are liable for licence.

You need to find out the practical approach and / or write to the Central Government your practical difficulties and seek exemption from obtaining labour licence under practical difficulties.

The labour licence vary from site to site. There is no single licence for different location. The licence is different for every establishment / work project of every PE.

Hope I have answered to your queries with your full satisfaction and there is no contrary view to it by any member of forum.

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