Hello Fellows;
Our company is working in UP based at Lucknow and got job which is spread in various cities of UP. We have got Contractor firms who are doing the job down the line. Our company has got itself registered as Principal Employer with DLC Lucknow and of constant persistence from DLC Faizabad, there also.
Furhter, after issuing Form V our contractors have got Labour Licneses from various DLCs. Now my question is whether we need be registered in every DLC and pay 1% cess of project cost or having ourselves registered in Lucknow would suffice.
Please clarify.
Nitin Kandya

From India, Farrukhnagar
Management Consultancy
+1 Other


I think there is a mix-up. The Registration of Principal Employer as per the CLRA Act is with respect to each establishment where the work is outsourced, so the registration of Lucknow Office alone does not suffice. If you are executing works throughout UP then you need registration as Principal Employer at all the places where the deployment of Contract Labour is twenty or more.
Next, the payment of Cess @ 1% is under the Building & Construction Workers Cess Act. This is a separate legislation and the amount is to be deposited on the construction cost and need not be project cost.

From India, Mumbai

Your establishment needs to be registered with the authority as a Principal Employer in the area other than Lucknow,where you would like to execute the work. On ground of your registration, the labour authority of concerned locality will issue the licence to the contractors whom you issued Form V.
The payment of CESS is not applicable to you(as Principal Employer) rather by the contractors you engaged, they need to get registered and pay Cess @ 1% as per the value of construction .

From India, Mumbai

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