How third party services can take contract licences? - CiteHR
Management Consultancy
Dilip G
Hr- Executive

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Dear All, I am Dilip Kumar Working as HR- Executive. I have Chat our organisation is doing third party services to OEM & Tier - I companies. Our clients are in overseas (Suppliers ) as per the CLA act i need to take C.L for 20 members means principle employer will give form V, VI- B & Purchase order to take C.L. here my scenario is different my customers are in oversea am working for nearly 30 suppliers under establishment now how i can take C.L ? who will give P.O, form no V, VI-B?.
Kindly clarify my doubts

The determining factor is on establishment where work takes place. You are doing third party services for your 30 principals who are foreign located OEMs. It is not clear as to whether your services are a part of the PO placed on your principals or you have independent POs placed on you directly by the indigenous customers. In either case you need Form V from such customers and in the former case your principal has to seek Form V for you since there is no direct linkage between you and the customer, otherwise you could get it directly from the customer. The principal employer is not the foreign agency for whom you are working but the indigenous customer in whose premises you are working. However if you are working actually abroad then there is no question of Form V or VI B. Also tell us, are you in Erection & Commissioning or testing or maintenance business and your set up like the number of employees etc
Dear Sir,
We are assignment/ PO based customer. Our activity are engaged with multiple customer and short term activity for every customer. (For example: XXX is the OEM their supplier is YYY they are in foreign we receive assignment order from YYY to do activity in XXX working location there is no relationship between XXX like this continuously we receive activity from various customer ) so for this we will maintain constant manpower in XXX work location.

Presuming that XXX is India-based, to perform your tasks at their establishment you need Labour License if in all 20 or more workers (incl. contract labour) are working there and XXX has to issue you Form V so also has to register themselves under CLRA Act. Otherwise, in case Labour Inspector happens to inspect the establishment XXX and finds your workers there, the consequences will be that of non-compliance of the Act.
Dear Dilip Kumar,
You don't required to obtain licence under CL(R&A) Act. Rather registered your firm under Shops & Commercial Establishment Act. The minimum people required to run the office establishment will be your staff/employee. The work of contractual nature, you can engage contractor by issuing form V to get them CL. To protect from exploitation of the people in employment, there need to be Employer & Employee relation and who can be sued for any violation. Hope this will give you an understanding.

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