Umakanthan53
Labour Law & Hr Consultant
Sitaramsn
Hr Freelancer
PROVATI
Service

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Dear All Seniors, Specially Madhu Sir & Umakanthan Sir,
I have few questions on Contract Labour Licence Applicability, expect your expert view on this please...
A company has done a CL agreement with a big manpower supply company and agreement has been executed in the city where that company's head office is situated. More than 3000 Contract Sales Employees have been deputed under that manpower supply company in different cities, states and rural areas on pan India basis. Not more than 20 employees, even not more than 5 employees are working under one premises / place, if consider state wise 100 to 120 person working in a state, working in markets of different cities and rural areas of that state.
1. whether Contract Labour License applicable or not ?
2. If applicable, how License can be taken, state wise, location wise or all under head office ? but does not have 5 employees in one place.
3. If that principle company does not have office in all states, what is solution ? P E can not take registration for issuing form - V.
4. Is there any rules for Centrally registration from Head office ?
5. Is there any para or section under CLRA Act, where it has been mentioned that License only applicable when 10 or 20 employees working in one premises under one roof, please let me know.

Please check whether you engaged 5 or 20 workers through contractors in your premises. As per section 1(4) it applies if you are engaging more than specified numbers.
Though you are engaging workers at different places, better to cover them with a license from contractor for all statutory protections. However, it is suggested to obtain licenses for the places where they are working.
This is my opinion. Let us have opinion from experts in this regard.

Dear Provati,
In State of Gujarat v. Vogus Garments [ 1983(1)LLJ 255 ], the hon'ble Gujarat High Court has categorically observed that all contracts undertaken by one for another would not necessarily be contracts of contract labor. At times certain activities of an establishment can be outsourced by entrusting them to some other to be accomplished through the latter's employees. In such a case, the agreement is only a contract for service distinguished distinctly by the absence of control and supervision over the activities as well as the employees by the contractee as the activities are performed elsewhere other than the contractee's establishment. It depends upon the business model of the contractee rather than the activities performed by the contractor on his behalf.
Therefore, please explain the nature of business of the Company with pan-India operations and state whether the 3000 contract sales employees are required to work in its various direct branches or franchisee establishments situated across the country.

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