Applicability of Labour License-Principal Employer is Educational Institute (Trust) in Maharashtra - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Bijay_majumdar
Freelancer In Hr &indirect Taxes For
DilipSN
Labour Law Consulting & Outsourcing
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber

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Dear Sir,
We are construction contractor and got order from Educational Institute (Trust) Maharashtra for building collage building.
My Query is
Is it required for principal employee have to registration under CLRA ?
Being contractor how we will get the Labour License as we will deploy more that 50 employee.?
Is their any exemption for trust/educational institution under CLRAfor the licensing part.
Plz suggest
Pradeep

Dear friend,
Education is an industry. As such it is not exempted from any Labor Laws. Therefore, the CLRA Act,1970 is applicable to such an educational institution irrespective of its being a Trust if any activity relating to its business involves the engagement of the minimum no. of contract labor prescribed under the Act. Hence the Trust has to register itself as Principal Employer and the Contractor has to take up contractor's licence under the Act. In addition, the Building and Other Construction Worker's ( Regulation of Employment and Conditions of Service ) Act,1996 would also be applicable to the construction work.

Thank you sir,
If principal employer is not issued Form V, Can contractor apply for labour license without form V, as it is completely online process in maharashtra.
Plz suggest
Thanks & Regards
Pradeep B N

Dear Mr. Pradip,
Maharashtra Contract Labour Rules are not applicable to Educational Institute/Trust, but while construction of the building of the same it is applicable as well as Maharashtra Building & Other Construction Workers Rules applicable.
Regards,
Dilip Nandanwar
For Vidarbha Industries
Labour Law Consulting, Auditing & Third Party Payroll Outsourcing
Navi Mumbai & Nagpur.

License undur contract labour act is mandatory.
For a construction company it is also mandtory to be registered under BOCW.

Dear Dilip Nandanwar ji,
According to you Maharashtra Contract Labour Rules are not applicable to Educational Institute/Trust.
Can you support your statement with the help of specific rule or notification etc.? I will be highly obliged.

Dear Pradeep ji,
Though our learned member Shri. Umakanthan gave you right answer, I would like to give you answers question-wise as under:
1. Is it required for principal employee have to registration under CLRA ?
Yes. The PE is require to obtain RC under CLRA and then issue you Form V. Without Form V, you can not proceed with your application for licence.
2. Being contractor how we will get the Labour License as we will deploy more that 50 employee.?
You have to apply online. For that you need to register your self first on Maitree - Mahaonline. The procedure of registering yourself and then applying for licence on portal- Labour Management System is a time consuming and tedious job. My office can get this job done for you with appropriate charges. If you are willing to do it so, you can contact my office on 022 49741622.
3. Is their any exemption for trust/educational institution under CLRAfor the licensing part?
I am sure, there is no such exemption to trust/educational institution.
Apart from licence under CLRA, you need to obtain RC under BOCW Act. You need to register your construction workers under BOCW as Beneficiaries subject to certain conditions. Cess under BOCW is payable at 1% of construction cost by PE but PE can ultimately recover it from you, irrespective of express term in the contract or not. Under BOCW, you need to comply so many provisions. You need to comply so many applicable Labour Laws and therefore, you need a person like me to guide you from time to time.

Dear Keshavji,
Thank you for the guidance.
Thanks & Regards
Pradeep

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