New to Contracting: Do We Need a License for Permanent Employees Under Labour Contract Act?

Hi,

I am a new joiner and I have a query regarding obtaining a license under the Labour Contract Act. We undertake contracts for the erection of mobile towers for various clients, making us the contractor while the client becomes the principal employer. However, we do not employ any contract labor to execute such work. One of the client's legal advisors is insisting that we take the license, stating that once we become the contractor, all our employees, even if they are permanent, will be considered as contract labor. Is this true? Are we supposed to take the license? Please help.

Hi,

Of course, it is true, isn't it?
You might have hired people on a permanent basis, but as you have agreed to be the principal employer, your people are considered contract laborers.
My personal opinion is that you must obtain the license from the concerned DLC.

- Vinayak Bhat