Licence applicability - Client has not obtained RC & not issued Form V? - CiteHR
Pan Singh Dangwal
Joint Manager

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Dear Sir,
We are doing communication networking to to Airfore in PAN India basis. Client has not obtained RC & not issued Form V.
Our total labour strenth all over india is around 40 workment. Each zone they were around 5 or 6 workmen. In such case shall we eligible for license? Hear client and contract is only one for their projects in PAN INDIA.
Please whether we are eligible for license or not?
Regards,
shk

Dear Member,

Principally, the CL (R&A) Act, which attracts Labour Lic., is applicable:-

“Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour. Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen”.

However, in case of Maharashtra the word “20 or more workmen” has been substituted by “50 or more workmen” (notification dtd. 05th Jan 2017).

As your labour is scattered aIl over India (being less than 20 each site), so as per my opinion you need not to obtain the licence.

However, I would further advice while making the Agreement be specific that No. of menpower should not be mentioned there. Instead I would suggest you to make difference agreement for different location/s (it can be done region/state wise as well). This will strong you case during labour inspection visit (if any happens in future).

Hope I have cleared your query.

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