This is regarding Contract Labour Act 1970.
Lets suppose a contractor employs 11 employees under one Agency name and another 10 employees under a different agency name. Does this contractor need to be registered under the Contract Labour Act? Or does having employees split up in two different agencies means he can avoid registering? The owner/contractor is the same in both the cases but operating under different brand/agency names.


Principal employer has the obligation to ensure that all regulatory norms related to Contactual worker be fjlfilled through his contractor.
If you are hiring two different agencies for contracts owned by a single proprietor while the nature of work be similar then ensure that contract license is obtained as erquired.

From India, Vadodara
Thank you for clarifying. Would you happen to be aware of a judgement or government rule that would affirm that single proprietor operating under different contractor names needs to obtain a license?

Dear Amit.Rajani ,

If both the agencies though ownership is same, are independent having its different brand name and different constitution, different nature of work, no interconnection and no inter dependency, both the agencies are established not with intention to defraud the laws then both the agencies will be considered as separate from each other and they are liable individually under the CLRA, as per the prevalent provisions under it. But it is difficult to find such kind.

I said prevalent provisions because every state has different criteria for obtaining licence under CLRA. I thing the criteria in WB, Gujrat and Goa was 10 and above few years back. I do not know whether it is same as on date or amended. In Goa, I remember that it is amended to 50 but not sure.

Coming back to the subject, obtaining labour licence, no one see what is the law. I am very sorry to say it. No one is concern with the law here but concern with how much you pay under the table. This department is most corrupt in all over the country every State even though today every thing is online. Unless you pay under the table, your on line application will not be granted. No one will see who is the applicant, what is the nature of contract work, whether the application is genuine or not, etc.

I have seen RC having entry of same contractor with more than one entry with different nature of work and the contractor is having more than 50 labours, no licence is issued to him. You follow the system, every thing is possible. System is meet the officers periodically and meet with their greed.

Very few exceptions you will find the officers with knowledge and honesty.

From India, Mumbai





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