We have a valid license under CLRA, 1970, and have deployed two subcontractors who also possess valid state Contract licenses as per CLRA, 1970. However, they do not have shop and establishment registration. They are carrying out maintenance work by employing 60 contractual workers and are ensuring compliance with all statutory requirements as per CLRA, 1970.

Can they deduct LWF as per the Odisha Labor Welfare Fund Act?

From India, Mumbai
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Eligibility for LWF Deduction under Odisha LWF Act

In the context provided, the eligibility for deducting the Labor Welfare Fund (LWF) under the Odisha Labor Welfare Fund Act needs to be carefully assessed based on the specific requirements outlined in the legislation. Here are the key points to consider:

1. Shop and Establishment Registration: The absence of shop and establishment registration for the subcontractors could potentially impact their eligibility to deduct LWF. It is essential to verify whether this registration is a mandatory requirement under the Odisha LWF Act for entities deducting the LWF.

2. Contract Labor Regulation and Abolition Act (CLRA), 1970: While compliance with CLRA, 1970 is crucial, the specific provisions of the Odisha LWF Act must also be adhered to. The fact that the subcontractors have valid state contract licenses under CLRA, 1970 is a positive aspect but does not automatically guarantee eligibility for LWF deduction.

3. Statutory Compliance: Ensuring compliance with all statutory requirements, including those related to the Odisha LWF Act, is fundamental. Any discrepancies or non-compliance could pose challenges in claiming deductions under the LWF Act.

4. Assessment of Eligibility: To determine the eligibility of the subcontractors to deduct LWF under the Odisha Labor Welfare Fund Act, a detailed review of the Act's provisions, particularly concerning subcontractors, shop and establishment registration, and the nature of work being carried out, is recommended.

5. Consultation and Expert Advice: Given the complexity of labor laws and statutory regulations, seeking guidance from legal experts or HR professionals well-versed in Odisha labor legislation can provide clarity on the specific eligibility criteria for LWF deduction in this scenario.

In conclusion, while the subcontractors' compliance with CLRA, 1970 is essential, the specific requirements of the Odisha LWF Act regarding shop and establishment registration and other provisions must be carefully evaluated to determine their eligibility for deducting the Labor Welfare Fund. Consulting with legal experts for a thorough assessment is advisable to ensure compliance with applicable labor laws and regulations.

From India, Gurugram
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