"Concept of Prinicpal Employer vis-a-vis Engagement of Private Agencies" under Contract Labour (Regulation & Abolition)Act, 1970" - CiteHR
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Ours is a large scale automobile dealership sales and service set up with a staff strength of 400 +. We have engaged various external agencies for inward/outward security for office and stockyard premises and housekeeping job works. The agencies render services through their own manpower forces for the purpose and not directly engaged by us. Now my queries are as follows:
Whether engaging such agencies come under the scope of Contract Labour Act ? Are we liable to fulfill the relevant statutory
compliance under the provisions of the CL Act. i.e.
> Registration as Principal Employer on our part and issuing them the relevant form for Labour Licence for engaging their services.
> Asking them to furnish all the mandatory details under the Act for our reference and record.
>Submission of Annual Return etc. to the Labour dept.
We understand that only government agencies are to get registered as Principal Employer with the Labour Dept. and issue Forms to the vendor contractor for engaging the laborers for execution of Contract jobs.
Please not that the security and housekeeping agencies have obtained labour licence on their own engaging thelabour services'
Regards.
Madhucon Pcl

Dear friend,
I invite your kind attention to the applicability clause u/s 1(4) and the definition of the term " establishment " u/s 2(1)(d) of the CLRA Act,1970 respectively. Being an automobile dealership engaged in the sales and service, your establishment certainly comes under the purview of the above Act. It is not only Govt. agencies but Govt establishments also come under the Act. Therefore, you have to get yourself registered as a Principal Employer under the Act.
The contractor's licence contemplated under the Act is both establishment- specific and work- specific being granted on the strength of the form given by the Principal Employer both work-wise and contractor-wise and as such non-transferable. So the labor licence mentioned in your post is irrelevant to your establishment.

Dear Sir,
So for all practical purposes, for engaging outside agencies for designated job works, we have to get ourselves registered as the Principal Employer in the prescribed form, issue Form V to the agencies for getting labour licence (even though they are having labour licence of their own) under the Contract Labour Act.
Also let us know the details involving the necessary statutory compliances for our reference.
Regards.
Madhucon Pcl.

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