Umakanthan53
Labour Law & Hr Consultant
Manojkamble
Sr. Hr Executive
Pan Singh Dangwal
Joint Manager
Manojag22
It Resourcing, Director

Hi,

We want to check whether as we do no have any one on contract employment with us.

The Contract Labour (Regulation and Abolition) Act, 1970 read with the State Contract Labour (Regulation and Abolition) Rules

We are Mumbai based and have 50 + employees and out of which 35 works on project with client premises in Pune, Noida, Chennai, B'lore as contractor.

All of them are permanent employees with us and salary is mostly above 40,000/- per month.

We rec'd the mail asking as per their audit to submit following:

Labour License of contractors operating at Client's premises

Copy of last 2 Half-yearly returns filed by contractors

Register of Workmen maintained by contractors for Client

Attendance Record (Muster Roll) along with Time-In/Time-Out records maintained for contract workers for each Contractor

Registers of Advances, Fines, Overtime, Deductions & Damages and Loss to be maintained by Contractors in Client's premises

Proof of payment of wages (wage slips) to contract workers and copy of Bank advice by Contractor

Employment Cards of contract employees deployed at Client premises

Kindly help Manoj
7th June 2017 From India, Mumbai
Dear Mr Manoj,

I am not cleared with your very first line “We want to check whether as we do no have any one on contract employment with us.”

However, after going through the entire thread my understanding is that you are a contractor company which deploy technical employee/s at client location/s and which are direct your on roll employees.

But you have not mentioned how long you have been doing and have you deployed 20 or more labour on a single site?

I am asking the detail just to check your applicability under CL (R&A) Act, 1970. Principally, the Act, which attracts Labour Licence., 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 wef 05th Jan 17, the word “20 or more workmen” has been substituted by “50 or more workmen” (notification dtd. 05th Jan 2017).

You have been doing this long back, may be prior to 05th Jan 2017, you were covered under the Act (if you have deployed 50 or more workmen in a single site/agreement in Maharashtra) or (20 or more in any other state).

Since you have not obtained any license, so submission of Half Yearly Return not arises at all. The other documents are also related to contractual manpower under the Act. Generally the records under the Act are same as we maintain for a common employee, but those need to be maintained on specific formats/registers as laid down in the Act.

However, I would advice to present to the Labour Office (from where you got the mail) and produce the records related to your employees deployed in different locations. Produce the fact and seek their advice. If in r/o any location/s you fall within the definition of the Act, than you have to apply for the labour licence (which involved some documentation and finance charges as well).

Hope I have clarified your points. I request Mr. Umakanth sir to comment on the same (who always give expertise suggestion on matters related to CL Act).
7th June 2017 From India, Delhi
Dear Manoj,
As your employees work on clients site, that mean you are working as contractor and client is working as principle employer for them. Thus the Contract Labour (Regulation And Abolition) Act, 1970 is applicable to you. You need to have contract labor license and principle employer needs to have registration under the act as well.
All above given documents are applicable to you.
7th June 2017
Hi Mr. Dangwal and Manoj, appreciate taking your time for reply.
We have 18 people at client site in Pune, 9 in Chennai, 2 in Gurgaon, 5 in B'lore, 2 in Mumbai. They are with different clients,
Pls confirm whether this is applicable to us as of now.
Thanks in advance.
Regards
Manoj
8th June 2017 From India, Mumbai
Dear Manojag22,

Pls make sure you should have proper documents agst the deployment as shown by you.

If it is OK, than in my opinion you don't come under the preview of the Act.

Since you have got letter (inspection notice) from labour office. You have to visit them and produce the facts (with supporting docs like client agreement, site attendance, Wages Payment detail, Appointment letter/s etc.). Though as per my thinking the office should not ask you document other than related to there jurisdiction. Still you carry the docs with your homework.

After final discussion and their clarification submit a letter in writing stating the facts of the observation. Clearly mention that “the case pleased be treated as closed”.

Hope this will be enough for you. Pls share your last outcome on the matter, so that needful suggestion/s can be provided to other fellow members.

At last once again I would suggest to seek Umakanthan sir valued advice on the matter.
8th June 2017 From India, Delhi
I think that the presumptions and replies of our learned friends M/s Pan Singh and Manoj Kamble are quite appropriate and correct as well. Being so, I do understand that the establishment-wise break-up no of employees furnished subsequently prompted Pan Singh to reverse his earlier reply. Therefore, for the sake of personal clarity as well as future contingencies, I would like to request the questioner Manoj to meticulously go through the definitions of the terms " appropriate Govt"(Sec.2(1)(a)), "contract labour"[ 2(1)(b)], "contractor"[2(1)(c)], "establishment"[2(1)(e)] and "workman"[2(1)(i)] of the CLRA Act,1970.

Manoj's establishment is an industrial organization situated in a particular State with 50+ employees. So, as it is, it is an establishment like factory or otherwise as per the applicable establishment-oriented Labour Law. Some of the employees are lent on contract basis to certain establishments scattered across the country. Therefore, they are contract labour in relation to those establishments as their engagement is based only on the contract between those establishments and the Pune establishment as principal employers and contractor respectively. This is the general scenario of the situation.

Coming to the question of taking up contractor's licence under the CLRA Act,1970 by the contractor i.e the Pune establishment in respect of the contract labour lent to the various principal employers, the essential criterion is the total no of workmen lent out on contract basis to each such principal employer as fixed in the respective State. If the total no is less, no licence is to be taken. However, maintenance of records like registers etc., and payment of minimum wages are to be strictly complied with.
8th June 2017 From India, Salem
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