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If the principal employer has hired (all from third party contractors) following strength: -
1. No. of manpower (office boys) from third part contractor = 6
2. No. of Housekeeping staff from third party contractor = 5
3. Security personnel from DGR empanelled contractor = 4 (including 1 supervisor and 3 security guards without arms)
4. Under Canteen "rate contract", the contractor provided canteen workers(cook, waiter, cleaner) = 5
5. Software company (third party) has provided computer technician to the principal employer under AMC/FMS services = 2
Total count of above goes to 22 during the previous year. So, will the principal employer be required to take registeration under THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970?
>> Further, in the case as mentioned above, as per exception to the definition of "workmen" defined in clause (i) which says
-who, being employed in a "SUPERVISORY CAPACITY" draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.
Thus, since we are employing one supervisor in our security personnel, then the number of workmen will be 19 (excluding supervisor and 2 computer technician).
Can you please advise whether such interpretation is correct on my end and thereby making the entity exempt from taking labour license registeration.
>>In relation to the above question,
I would like to clarify whether the staff provided by the contractor under "Rate contract" will be counted while checking the applicability of the Act. Since, the organisation has entered into contract with the third party to provide the canteen services and accordingly, the contractor has provided 5 workers which can manage the canteen services of the organisation.
Suppose, in future the contractor increases the strength of the staff provided to say 6 or 7, to provide the good level of service to the organisation (though the rate will still be fixed as per rate contract which is generally as per no. of plates consumed), then do such workers provided under rate contract be counted while checking the limit of 20 workmen employed during the year?
CA Tushar Jain