Umakanthan53
Labour Law & Hr Consultant
Rkn61
Hr Manager

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What is the difference between Contract Labour act(Principal Employer) and Contract Labour act(Contractor) License. May i know the difference between RC (Registration Certificate) and labour license?
From India, Bengaluru
Under CLRA Act, Principal employer shall have the responsibility to obtain Registration Certificate and under the same Act, the Contractor shall have the responsibility to obtain his Contract Licence.
Both the certificates are issued by Labour Deptt

From India, Aizawl
Dear Raju,
In general, registration means the act of entering some statutorily required information about something in a system of public record. Licence, on the other hand means a permit granted by a statutory/proprietary authority to do something subject to certain conditions/restrictions.
Therefore, you have to analyse the registration certificate as principal employer issued u/s 7 of the CLRA Act,1970 and the licence to a contractor u/s 12 of the Act in the above back drop as follows:
In the registration process, the employer who intends to engage contract labor in any activity of his establishment gets himself registered as " Principal Employer " to the workmen engaged through a contractor by furnishing the particulars such as the name and address of the contractors, the contract work allotted to each contractor and its duration, the maximum no. contract labor likely to be engaged in such works etc. When the total no of contract labor in the establishment reaches 20 or more, registration as principal employer is mandatory. Thus this is a one-time-affair unless there happens any material change in the particulars already furnished. Without a registration certificate as principal employer, no establishment can engage any contract labor.
A licence issued u/s 12 of the CLRA Act,1970 is a permit given to a contractor to engage a specified maximum no of labor within the premises of the principal employer's establishment in a particular contract work for its specific duration. Thus a contractor's licence is contractor cum work-specific. In addition to the prescribed licence fee based on the no of contract labor to be engaged in such work, the contractor has to make a security deposit which is refundable after the completion of the contract work. If the work is not completed on the date specified in the licence and likely to be continued, it should be renewed. Without a contractor's licence, no contractor should be allotted any work which involves the engagement of 20 or more contract labor by the principal employer.
Contract labor being an indirect form of labor leaves a vast multitude of labor force in organized industries across the country to the mercy of intermediaries called contractors. To eradicate this system of indirect labor wherever possible and to regulate it time being wherever impossible only the CLRA Act,1970 was introduced. Therefore the provision for registration of principal employers enables the identification of contract labor in the first place and secondly the vicarious liabilities enjoined upon such principal employers u/s 21 of the Act protects the interests of contract labor. The licensing provision of contractors ensures humane conditions of employment on par with the regular employees of the principal employers.

From India, Salem
I am giving example here please.
NHAI allotted road work to Company "A". here NHAI is principal employer (Establishment) Company "A" is contractor. So NHAI should get registration certificate and company "A" should get contract labour license to carry their road works. But when company "A" allotted some portion of their work to Company "X" and appointed as sub-contractor, here company"X" also should get license? If yes, who should give form-V to get license? Can company "A" give form-V as company "A" is principle employer to Company"X" or / it should get form-V from NHAI? or no need to take any license and carry works under company "A" license? please elaborate.

From India, Bengaluru
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