If an organization has multiple branches at various centres and has employed a company for housekeeping work at all the branches. Each branch has less than 5 employees working from the housekeeping company. However, if we add the number of such employees at all the branches - the total is more than 20. The payment to the housekeeping company is made by the individual branches for their housekeeping. In this case, could the different branches to be considered as different establishments under CLRA?
Is CLRA applicable in such a situation?

From India, Chennai
Dear Member
I would like to draw your attention to the definition of “establishment” in section 2( e ) (ii) where it is mentioned that (ii) any place where any industries, trade, business, manufacture or occupation is carried on
Thus in your case each branch is separate Establishment and though the contractor firm is the same he is different contractor for different branch.
Please remember CLRA is PLACE specific act.
Shailesh Parikh
99 98 97 10 65

From India, Mumbai
Thanks a Lot Shailesh!
This means the Organization will not be treated as 'Principal Employer'.
Is there any court case or verdict available which firmly establish this view? I am getting a contra view from some interested parties who maintain that CLRA will be applicable.

From India, Chennai
Dear Mr Pradip
No। CLRA remains applicable even for single person hired by a contractor to undertake your job।
But will not attract mandatory obtaining of Labour License if same contractor has not engagged more than prescribed nos of persons at a single place (branch) of your company।
Shailesh Parikh

From India, Mumbai
Thanks Shailesh!
Please pardon my inability to immediately grasp this concept fully. I am not sure about the implication in such case. Less than prescribed workers mean that the organization need not obtain Labour Licence. Thats ok. But, what if the contractor fails to make payment of minimum wages to workers. Whether, the provisions of CLRA is applicable where Principal Employer has to make the payment of the difference?

From India, Chennai
Dear Pradeep, Rightly said by Mr. shailesh. CLRA is more of place specific and have nothing to do with overall headcount. But Code on OSH may lead to 1 license for all sites too.
From India, Delhi
Thanks Sandeep! It will be very helpful if you could provide your views on the query raised in my last message in this thread. Have a good day!
From India, Chennai
If it is a single Work Order issued centrally for multiple locations, does licence under CLRA required though the number of workers in each location is less than the specified number.
From India, Chennai
From the discussions - I assume that Licence is not needed under CLRA if number of workers in each location is below the threshold in such situations. However, it is not yet clear whether the Principle Employer will be responsible under the provisions of the act in case of failure by the contractor - like minimum wages etc.
Hope that some Expert member will be able to tell us this!

From India, Chennai

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