Labour Law & Hr Consultant
Bharat Gera
Principal Hr Consultant
Srinath Sai Ram
Hr Manager
[email protected]
Sr. Manager (p&a)

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Dear All, I need a clarification on CLRA compliance for Construction Site.
My contractor has mentioned, 'As per labour licence upto 2000 workers can be inducted without Form V"
Contractor already has licence for 2000 workforce.
Please let me know if this is correct.

From India, New Delhi
Dear Mr Dinesh, your statement that "As per labour licence upto 2000 workers can be inducted without Form V" is not in conformity with CLRA Act.
Labour License is issued under Which Act? Shops & Commercial establishments Act?
After issue of Form V by Principal Employer, Contractor has to apply for License under CLRA Act
Please do not mix up with various Acts.Please go through relevant acts in detail & revert with your query

From India, New Delhi
Dear Dinesh,
It appears to me that your post lacks the necessary particulars. When you say that the contractor already has licence for 2000 workers, whether it means that he has taken up the said licence based on the form V you had already issued for some other item of work pertaining to the same construction site OR he is having an unexpired licence taken by him for some other contract work elsewhere? In any case his statement may be based on the wrong premise that the contract labor licence once taken is valid till its expiry date. The licence issued u/s 12 of the CLRA Act to the contractor is work-specific only.

From India, Salem
Dear Friend,
So far as I understand that as per CLRAct the employer has to register first by giving details of contractor/s he is going to engage and also the details of number of contractor employees required to be engaged in the project by each contractor.
There after form V is issued by the employer by giving desired details as per said form.
Either your company has already issued that form or the contractor got licence for some other employer which remained un utilized. This is infructuous for your purpose.
Your information is incomplete.
Warm Regards
Bharat Gera
HR Consultant

From India, Thane
There are two options 1. S&CE Act or 2. BOCA Act. However, Form V pertains to that particular project has to be obtained. The contractor may obtained licence for 2000 workmen in general. Whereas, specific approval for the site is required as the location differ.

From India, Madipakkam
Thank You so much all for timely help. Am clear now.
From India, New Delhi
Dear Sir's,
I have one more clarification, does CLRA says no employment contract required for workers? I could not able to see anywhere that no employment contract is available and so on. Where as Contractors & PMC says not required.
Request you to guide with clause.

From India, New Delhi
Dear Dinesh
There will be a Contract of agreement signed by the Contractor and Principle employer with the required terms and conditions to carry out the given assignment/s. There is no need to give individual letter/s to their workers. It is the responsibility of the contractor. Also, I would like to say if you are okay and need a HR Manager for your organisation, I can join with you to handle all your HR, IR, CLRA and statutory compliance, liaison with Government organisations etc, Please call me on 99411 53511

From India, Madipakkam
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