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Respected Seniors

My query is on obtaining a Contract Labour license by the Main contractor & Subcontractors. Query details are as follows.
Our company has given a project to contractor-A (Main contractor). Contractor A is carrying out the said work through sub-contractors X, Y, and Z. We insist that the main contractor and sub-contractors obtain the labour license. However, the main contractor is refusing to obtain the license, and he is saying that he engages 4 or 5 employees only to supervise the work, and the total work will be carried out through sub-contractors only. The sub-contractors will obtain the labour licenses, as he said.

Is it not necessary for the main contractor to obtain the license?
I request respected seniors kindly advise on this issue.


From India, Vijayawada
Dear Ramu,
as per law minimum requirement of worker for obtain LL is 50+. as your main contractor engaged with 4 or 5 casuals and subcontractor have 50+ worker. you have to make tripartite agreement between your company, main contractor, and sub-contractor. in results sub-contractor will show on your RC for further LL process.

From India, Pune

it is necessary for the main contractor to obtain the license because the principal employer awarded the jobs to A(main contractor). Further, the contractor can't sublet the work to others(subcontractors) without the consent of PE.
Being you are PE ask the contractor to obtain the license, and other contractors too.

From India, Mumbai

Dear Ramu,

As far as compliance under the Contract Labour Act is concerned, all the Contractors (Contractor A, X, Y & Z) are in the same boat and hence you will be treated as the Principal Employer for all these contractors.

Since Contractor A is introducing the other contractors, please take an indemnity bond from Contractor A to protect yourself from any future liability, if any, due to non-compliance with any of these contractors.


From India, Delhi

Thank you very much for all your valuable advices
From India, Vijayawada

Hi Ramu,
n many jurisdictions, both the main contractor and subcontractors may be required to obtain a contract labour license depending on the specific laws and regulations governing labour and contracting in your region. While it's common for subcontractors to obtain their own licenses, this doesn't necessarily absolve the main contractor of their responsibilities, especially if they are directly overseeing the project.

Here are some key points to consider:
Legal Requirements:
It's crucial to review the labour laws and regulations in your area to determine the exact requirements for obtaining a contract labor license. These laws may vary depending on the industry, location, and size of the project.

Responsibility of Main Contractor:
In many cases, the main contractor is responsible for ensuring that all labour employed on the project, including subcontractors' workers, complies with labor regulations. This often includes obtaining the necessary licenses and ensuring that all workers are legally permitted to work on the project.

Subcontractors' Responsibility:
While subcontractors may obtain their own licenses, this does not necessarily alleviate the main contractor of their obligations. Both parties may be held accountable for ensuring compliance with labor laws.

Risk Management:
Failing to obtain the required licenses can lead to legal consequences, including fines, project delays, and even legal disputes. It's in the best interest of all parties involved to adhere to legal requirements and obtain the necessary licenses.

Contractual Agreements:
Review the contracts between the main contractor and subcontractors to determine if there are specific provisions regarding the responsibility for obtaining labor licenses. Contracts should clearly outline each party's obligations to avoid misunderstandings and disputes.

Ultimately, it's advisable to consult with legal experts or regulatory authorities in your area to clarify the specific requirements and obligations for obtaining a contract labor license. Additionally, open communication between the main contractor and subcontractors is essential to ensure compliance with all legal and contractual obligations.

From India, Bangalore

Thank you very much for your valuable advice sir
From India, Vijayawada
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