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Hello Seniors, Need clarification on below:
We are providing facility services to a office tower (let's name my company B). The office tower is occupied by a company (let's say this company A). Now we have taken manpower through contractor (let's name the contractor C).
My question is does the company B needs to have a Labour Licence? As per my knowledge, since we are principal employer for the company C, we don't require license as C has the labor licence.
I appreciate your valuable feedback.
Thanks,
Swati

From India, Delhi
It depends , whether you are raising bills to the tower for work or the company A is paying you the salary of your employees with some extra amount. Is your employee working for company A? If yes then company A will be principal employer. otherwise you will be the principal employer.
From India, Pune
Hello, Thanks you for your inputs.
1) We raise bill to company A.
2) We are paying salary to our employees.
3) the house keeping manpower are outsourced through contractor.
I need to know do we also require to have labor licence.

From India, Delhi
Dear Swati,
Its not that simple, Now you are providing manpower services to company A that means you are a contractor for company A and company C is a contractor for you (I.e sub contractor for A). It means you have to have labour license maybe you need GST too.

From India, Pune
## As per CLRA Act
-A workman shall be deemed to be employed as "contract labour" in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer.
-"contractor", in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods of articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor.
In your case Company "A" is the Principal Employer as you mentioned in your queries that Company "A" is Occupier).
Company "B" is a Contractor as you mentioned in your queries that Company "B" is providing facilities services to Occupier i.e. Company"A". In another words Company "A" has given a Contract directly to Company "B".
Company"C" is a Sub-Contractor as he is supplying a contract workmen for performing a work through a contractor (Company "B" ) with or without the knowledge of the principal employer.
Based on above explanation, you (Company "B" ) is responsible for taking a labour license.
Regards,
Amit

From India, Delhi
Really appreciated, thank you all for your valuable inputs
From India, Delhi
The question of Registration/Obtaining License under Contract Labour Act arises,IF 20 OR MORE WORKMEN are Employed as "Contract Labour"
From India, New Delhi
Dear Sir, I want to start Housekeeping service for commercials. Please share copy of Housekeeping contract or what is the current charges as per delhi location.
From India, Delhi
Dear Swati,
What I under stood from your posting that, Your Comapny has been engaged under Company "A" to perform some work. Instead of doing by you a contractor "C" has been engaged to perform the job awrded to you.
Simply you can not engage any contractor or sub-let the job without the consent of comapny "A", who is Pricipal employer for both "B" & "C".
Whether your company has registered or obtained labour licence from the labour Department. If Company"A" has issued form V to your company on award of job? If yes, then your company is the contractor not the principal empolyer.
If your comapny does not want to do of his own then you can engage sub-contractor but will be controlled by you. If the engagenet of labou is 20 or more then the sub-contractor can go for licence but Company 'A" has to issue form V for that process.
Regards,

From India, Mumbai
Dear Swati,
Though the learned members have well explained you the matter. Let me clear few points where you are getting confusion, as per my opinion.
1 You are not the PE. Company A is PE for both B (Main contractor) and C (sub-contractor). Hence only Company A can issue the Form V (either to B or C, that depends upon mutual understanding)
2 Rightly said by Mr Prabhat you canít engaged (sub-let) any job without consent of PE. Here it is also important that same must be mentioned in the agreement as well. Else it can create problems while applying for the license.
3 If your total strength is less than 20 but the sub-contractorís strength is 20 or more and you want to avoid taking license. Than Company C can apply for the license. In such case A has to issue Form V in favour of C. If you take the license than you will be responsible to make compliance in r/o yours (B) and sub-contractorís (C) both staff deployed at site. But if C obtain the license than he is supposed to maintain only Cís manpower records. (for submission of Half Yearly Returns).
4 Pls be noted, before issuing Form V, A must have the RC (Registration Certificate) as a PE. Than only the labour office will accept the Form V and license application.
5 In Delhi now the Labour License process has converted into digital, whoever will apply for the license that has to be done on Delhi Govt Portal (known as e-District).
Hope I have clarified your points, for more clarification you can contact me. I am handling around 10 Labour License for Delhi and other state units.

From India, Delhi
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