Dear Sir, Please advise me on the topic CLR 1970 act : Suppose on total 5 location labour are supplied by a contractor with same principle employer
Since the total number of workmen including all locations is more than 20 hence this act will be applicable

But my question is asking about the location number 3 ( other than 3 all location has more workman than 20 but 3 has less than 20) which has less than 20
Now is this act applicable on location 3

From India, Patna
Partner - Risk Management
Pvt Service

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.


The act applies even in location 3
This is because applicability clause says it applies to every establishment in which twenty or more workmen, art employed or were employed on any day of the preceding twelve months as contract labour and to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.

Establishment can be assumed to be each location separately.
But since the contractor has more than 20 employees in total, the act will apply.

The next question (which you are probably asking) is whether he needs a license for each of the location including no. 3. That will depend on the state rules that you have to read and check.

Even if the license is not required, the rest of the regulations, including maintaining of registers and records, payment of proper wages, etc will continue to apply and protect the employees.

From India, Mumbai
Suppose location 3 is situated in different state than remaining 4 locations
On this location 3 less than 20 ( suppose only 2) workman was supplied
In such situation how this act will apply while the supplier contracter and principle employer is same

If this act will apply then its a meaning less and impractical fact which is to develope canteen and other facility according to this act only for supplied 2 workman on location 3 also
Its seems to like vast and impossible task to every principle employer to full fill it
Please clearify

From India, Patna

No, Mr. Bindra, you have not understood the gist of the matter.

The act applies to all cases where you have 20 or more contract workers (irrespective of whether there is 1 contractor or many). The provisions of the act are far more than just getting license. So your responsibility to ensuring payment of wages, statutory dues, safety, workers facilities, etc will apply, whether you have 1 contract worker of 1,000 contract workers at a particular location.

The idea of the provisions is to ensure that you do not shirk off your responsibilities and do not turn a blind eye (or actually facilitate) exploitation of workers by pushing them on to various contractors.

What you (or the contractor) will not be liable for is to get a license for the contractor at the location where there are less than 20 contract workers. And no, it is not an impossible task. And no, it does (according to me) make the act meaningless or impractical. Companies all over the country are adhering to it.

Incidentally, licensing is now for 50 workers and more in most of the states. Please check the status in your state when you do your compliances.

From India, Mumbai
Dear Sir

Please go through it request to once again revert

From India, Patna

Always check the date of internet posts, and the reliability of the information.

You are looking at a post made in 2011, which was more than 10 years ago. The law has been changed many times since then. For example,

Read Contract Labour (Regulation and Abolition (Maharashtra Amendment) Act, 2016

From India, Mumbai

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server