Hi Group,

I require help on the below topic.

Our company is registered under the factory act in Gujarat employing 70 employees and now we have received an order from a US company but the work needs to be performed in one of the refineries in Gujarat only and we need to supply 24 employees to that site.

Now the refinery HR says the refinery sector comes under the central government hence we need to provide a labour licence as the number of persons is more than 20.

Now my question is
(1) If we are already registered under the factories act can we also register as contractors under CLRA Act?
(2) If yes how can we apply for the CLRA licence as we have received the order from a US company?
(3) Process to apply for the contract labour licence in this case?

If anyone can guide me on the above scenario it would be really helpful.

Shailesh Jani

From India
Partner - Risk Management
Hr Manager
Management Consultancy

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The position is clarified below:
1. You need to apply for license as per CLRA act 1970 since you are supplying labour to the refinery. You are registered as a factory is not relevant.
2. The Form VA is to be issued by the Gujarat as work is happening there. I presume that the American company has engaged you with the knowledge and permission of the refinery.
3. You may consult the Gujarat Rules of CLRA Act or contact the State Labour Department for guidance.

From India, Mumbai

I believe the Gujarat Government has increased the limit for contract labour license from 20 to 50 in 2019 or 2020.
Event he notification for fees says 50-100.

I suggest you check with the local office of the labour commissioner and confirm.

However, it being a refinery, the appropriate government is central government, so the Gujarat ammendement may not apply to them, in which case you need to get a license.

As KK explained above, the fact that you have a factory license has no relation to work done by contract workers in a client's factory

From India, Mumbai

Yes. Factory licence and contractor licence are different. Possession of a factory licence does not exempt you from obtaining contractor licence, if you are supplying labourers.

You can get all information from Labour department in your area, regarding licence fee, procedure for applying for licence.

From India, Aizawl

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