Dear Sir,

Presently, I am looking after Compliances of a Construction Co in Gurgaon. My Company (PE) has awarded a Contract and obtained Registration Certificate under Contract Labour (R&A) Act 1970 for 1000 workmen in the name of One Contractor and Contractor has obtained Licence for 1000 workmen under Contract Labour Act (R&A) Act 1970 and also registered himself under BOCW Rules (Haryana), 2005 for 1000 workmen.

The Contractor has deployed various Sub-Contractors (deploying more than 20 workmen) directly under his supervision and control for different works such as Security, Plumbing, Electrical Fittings, etc
In my opinion, each Sub-Contractor deploying more than 20 workmen at Project need to obtain Licence under Contract Labour (R&A) Act 1970 and our Company being a PE should obtain RC for all Sub-Contractor and issue Form V to each Sub-Contractor. . Practically, it is difficult to get RC amended every now and then because as the work progresses, a lot of Sub-Contractor will continue to add on in the Project for various miscellaneous task. Once PE issues Form V to Sub-Contractor, then they can be considered as Contractor not Sub-Contractor. Main Contractor may not have direct supervision and control over Sub-Contractor because after having separate licence, they will have separate entity and be answerable directly to PE. Thus again responsibility of PE towards Sub-Contractor increases.

Kindly advise what is status of Sub-Contractor under CL Act, and how to avoid any violation under the Contract Labour Act (R&A) Act 1970. Further, does the Sub-Contractor need to get registered under BOCW Act separately?

Thanks & Regards

VK Saxena

From India, New Delhi
Dear Mr V K Saxena,
As per the CL Act, every contractor have to take labour licence. if your agreement between your company & contractor have a provision that Contractor can appoint an sub contractor for a particular job. Than also your company is a principal employer for that sub contractor but here Form V will be issued by your main contractor to his subcontractor. and it contractor duties to monitor on his subcontractor to do all the Statutory Compliance before his bill payment and as your company is Principal Employer of the both i.e Main Contractor and Subcontractor. its your double duties to control and monitor that both are doing all Statutory Compliance before his bill payment to you main contractor.
Hope you will understand.

From India, Mumbai

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