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We want to Know about labor licence input . If A is contractor and B is subcontractor of A then who is responsible to get labour license under contract labour act.
If A is what is process? If B is then what is the process? If both then what is the process?

Hello Friends
Good evening
we want to Know about labor licence input . If A is contractor and B is subcontractor of A than who is responsible to get labour license under contract labour act.
If A is what is process ?
if B is than what is the process ?
if both than what is the process ?
Hemant Kumar

Dear Hemant kumar,
As per CLRA Act there is no sub contractor term, every sub contractor will be a direct contractor to the principal employee. In your case being a immediate employer you are liable for obtain labour license.
principal employer responsible for all statutory compliance.
Regards,
K S T KRISHNA RAO

Sir,
Thanks for your prompt response
I Know about that on input more if A is getting labour license than who is responsible for maintain records of Registers under contract labour act of Sub contractor .
Because A is main contractor and B is under of A working at the project as labour suppler, in following situation
If A have Labour License but B have not labour license as replied by you But B have registered with EPFO scheme .

Dear Hemant,
There is no sub contract concept in CLRA so you have to follow all the compliance through registered contractor only.
In your case A is a registered contractor B is the sub contractor - All manpower show in only A contractor including compliance all so.

As per CLRA, contractor includes sub-contractor also. Though the contractor is primarily responsible to main relevant registers and records for contract workers, the Principal employer will beheld responsible to maintain in case the contractor fails to maintain them. Therefore it is incumbent on the principal employer to check and ensure that the contractor maintains them properly and pays the wages correctly and better to obtain a certificate of compliance from him every month.
Other views welcome.
B.Saikumar
HR & Labour relations Consultant

Dear Hemant kumar,
There is nothing called a sub-contractor. The contractor availed labour license on strength of form V issued by his principal employer. The sub-contractor you talk about is nothing but your sub-agency. The sub-contractor can also availed labour licence, if your principal employer issued form V but via media will be the contractor.

The definition of contractor includes sub contractor as per Contract Labour (R & A ) Act, 1970. The Form V (Now Form III in Central Govt) is issued to sub contractor by the Principal Employer if the Agreement between main contractor and Principal employer permits main contractor to engage sub contractor. In Big project work some specialised work has to be given to some specialist agencies such as const. of Chimney or Electrical work etc. in that case the Principal employer can give Form V directly to the sub contractor and sub contractor can obtain licence and also liable to maintain all registers records under CL Act separately for his own employees . In this case any violation on the part of sub contractor, only sub contractor is liable for action and no responsibility can be passed on to the main contractor or Principal Employer except Section 17 to 21(4), where the PE is also liable if contractor fails to provide certain amenities or to pay minimum wages. The labour suppliers in construction industry cannot be treated as sub contractor statutorily and therefore the main contractor has to maintain records of such workers provided by labour contractor including contribution to PF and ESI
Exactly, there is no sub contract word in CLRA. Every contractor working directly or in-directly has to opt labour licence and hence to be treated as Contractor of Principal Employer only.
On the above subject, required the following clarification.
We are in construction stage and awarded the work.
A contractor has sublated the work to 05 subcontractor and each subcontractor have the labour 15, 10, 12, 18 & 13. whether license needs to be obtained, if yes, who has to take the license.
Venkatesh.P


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