Dear Sirs,
As per Contract Labour Act, Sec 1 (4) - It applies-
(a) to every establishment in which twenty or more workmen, employed or were employed on any day of the preceding twelve months as contract labour.
(b) to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.
Present Scenario:
1. One of the contractor has obtained Contract Labour License for 5o labour
2. The Contractor has been maintaining Muster Roll with 60 Contract labour names
But none of the day has no crossed 50 contract labour or the physical attendance / physical present of contract labour / man or Labour entry has not crossed 50 members.
As you are aware, The practical problem in the contractor, there is huge absenteeism, hence the contractor is keeping the manpower in cushion.
Is it violation of the act, if yes, what is exact interpretation........
What are the measures to be taken, pls advice.....
Thanking you,

From India, Nizamabad
Labour Law & Hr Consultant


Dear friend,
The license to contractor granted under the CLRA Act, 1970 has the following aspects :
(1)lt is based on the maximum number of contract labor likely to be employed by the contractor on the particular work on anyone day during the period of its validity mentioned in the license and not in respect of any particular persons to be engaged as contract labor. As such it is only number-specific in respect of the contract labor.
(2)It is work-specific in respect of the Principal Employer as well as the contractor.
(3)lt is time-specific or period - specific as far as the contract work is concerned.
However, not withstanding the additional sums required to be paid towards license fee and security deposit, the contractor may consider keeping a reserve pool of labor to substitute the absentees and such practice of caution would require taking license for slightly more than the maximum number of labor actually required on anyone day.
Even otherwise, it cannot be a violation under the Act as long as the the maximum number of contract labor employed on any day remains equal to the maximum number of labor mentioned in the license already granted.

From India, Salem

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