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will security agency fall under CLRA act ? or shop & establishment act ?....we have 40+ security guards deployed by us to different locations like shops,factories,companies,cinema theaters,hospitals...will we have to register under contract labour act ?
From India, Chennai
Seasoned Ir Professional
Freelancer In Hr &indirect Taxes For


A security agency as a business by itself will fall under the state's Shops and Commercial Establishment Act and as such you should take registration required as per that Act. When your employees (security guards) are deployed in various sites, the operation connected with it will be covered by CLRA Act. If you engage 20 or more of such employees (guards) in any plant, hospital etc, for that engagement you should take licence. That means licence is to be obtained separately for each site of deployment where ever the number of such engagement exceeds 19. In case you have deployed only less than 20 in any particular site, no need to get a licence for that site. But that does not mean that the CLRA is absolutely absent in respect of that engagement. You are still under the cover of CLRA Act.

You will also be governed by the provisions of Private Security Agency (Regulation) Act.

From India, Kannur

Securty agencies fall under the perview of Pri ate security agencies act 2005.
It also is governed by state regulatory authority like maharashtra private security guards employment and wlefare act.Where in state defines rules and scheme for the same.
As in maharashtra, security services business mentions, CLRA is not applicable, rather it is geverned by guards boards of various districts for the matters of compliances.Where sec 23 defines clause of exemptions.
However, the shops and estd act is universally applicable to all business.
Pls check with your state labour department about the applicability of CLRA to security services.
Nevertheless,it is seen that compliances need to be followed more or less like CLRA ànd and all other applicable act.

From India, Vadodara
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