RD industries
We are working as manpower contractor with government institute ( principal employer)from last five month. now we want to apply for labor license is there any penalty for late applying.
From India, Jaipur
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Saswatabanerjee
Partner - Risk Management
Pan Singh Dangwal
Joint Manager

saswatabanerjee
2359

Just apply for the license giving a fresh start date based on the current contract. You need to get a Form V from the employer. What date he puts on it, is what you need to put in your application also.

There may be some minor penalty, but the bigger problem is the investigation by the Labour Commissioner on use of contract worker without license for 5 years. Therefore it is better to apply giving the current date as commencement of the contract

From India, Mumbai
Pan Singh Dangwal
223

Dear RD Industries,

In terms of applying in current date I differ as suggested by learned member Mr. Saswata (who assumed 05 years instead of 05 months). I would suggest to apply for the Labour Licence as per actual date. There are 03 main reasons:-

1. During licence process agreement is attached, the date will not match with the agreement (which already signed).
2. Generally client don't issue Form V with incorrect commencement date.
3. The commencement date and closure date will never match in renewal process and each time you have to face difficulty in the future as well.

Rightly said by Mr Saswata, there could be some penalty and other exp, but my advice to take the licence with correct date.

From India, Delhi
saswatabanerjee
2359

My apologies Mr. Dangwal. I did read the period wrong.
Also because few people would be worried about it being a few months late.

That said, I have seen PEs happily changing dates on documents to avoid a scrutiny by authorities (Not judging the legality or morality of the same here).

Again I agree with your suggestion that as far as possible, the correct dates are to be used.

From India, Mumbai
shiba-swain
Is there any specific check list (list of document) to be attached along with Form V for applying Labour License or it varies as per the jurisdiction of labour officer.
From India, Thane
Pan Singh Dangwal
223

Dear Shiba-Swain,

The Labour Licence process in now online in many states. Pls note the certain standard docs which are required (either to upload in online process or to be submitted to the Labour Officer).

1. Agreement (duly mentioning period, price). If it is a sub-contract there should be a clause "the prime contractor can sub-let the job/part of the job" or the contractor can engage sub-contractors etc.....
2. Form V.
3. Employee List with PF-ESI detail.
4. Last month Wages proofs (Attendance, Wages sheet, Bank Transfer Letter etc.).
5. Pay Slips.
6. Appointment Letter.
7. Self Declaration.
8. Authority Letter (if the person, who is supposed to sign docs, is other than the Proprietor, Partner, MD).

In online process may be all above not required, but anyone of the above can be asked during inspection process. Moreover, before applying thru online you have to create an account and Login Id (thru representative's mobile, aadhan, PAN etc.)

You can take any consultant's services, he will help in meeting the incidental exp. as well.

From India, Delhi
PRABHAT RANJAN MOHANTY
538

You are working as manpower contractor for a government institute ( principal employer)for last five month.
Let your Principal Employer gets its registration for engagement of contractor/contract workmen, then only you can apply for license.

From India, Mumbai
Pan Singh Dangwal
223

Dear Mr Prabhat,

I slightly differ from your view.

Though as per Act, primarily the PE should first get RC for the contract work, than only the contractor/s can apply for Labour Licence. But it is seen many govt dept donít take RC.

If contractor donít take labour licence and later in case of any labour dispute, contingency, visit by Labour Inspector the whole liability shifted to the contractor. Moreover, I have seen in many cases Labour Licence is issued to the contractor even if the PE donít have any RC.

So on basis of my practical experience it is advisable to at least apply for the Labour License and pay the Security Deposit and Licence Fees. Later if the Inspector deny to issue Labour Licence contractor will not held responsible.

M/s RD Industries has to check who is the appropriate govt (State or Central Govt) for the Institute. If it is Central Govt, than CLRA Act, 1971 Central Rules will be applicable and Labour License will be issued through Shram Suvidha Portal. If it is State Govt than in case of Online Process the Labour License will be issued thru EDistrict Portal of the state and in case of Offline Process Labour License will be issued by Labour Office of the area.

Since the query posted from Jaipur, Rajsthan where udner State Govt jurisdiction the Labour Licence is issued through Offline process.

We have one reliable consultant who is providing outsourcing and labour consultant services from long back. If you need the services I will share the detail.

From India, Delhi
PRABHAT RANJAN MOHANTY
538

Dear Mr. Pansingh, It is considered as violation to engage contractor /employ contract labour (stipulated number) without the registration by the PE as per the CL(R&A)Act.
From India, Mumbai

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