Contract Labour Act Confusion: Do Principal Employers Need to Issue Form V for Every License Renewal?

Dear seniors,

I would like to know whether, under the Contract Labour Act, the Principal Employer needs to give Form V to the Contractor each time the license is being renewed. Kindly clarify.

Regards,
J. Subramanian

Hi,

Yes, whenever the license needs to be renewed, Form V has to be filled out.

Cheers,
Harshad

Regarding labor license renewal, we are still in some confusion. The thing is for renewal, Form V need not be issued; just a letter from the PE is enough.

I agree with Jose. I have seen this being practiced for years in three different states.
- Hiten

Hi Subramanan,

For the purpose of renewal, please refer to Rule No. 29 of the Contract Labour Act 1971. This rule states that the contractor seeking to renew their license must submit their application in Form VII in triplicate. If the contractor continues to work with the same principal employer for the following renewal license year, there is no requirement for them to obtain Form V from the principal employer.

However, if the contractor changes organizations and wishes to renew their previous license, they must acquire a fresh Form V certificate from the new employer and submit it along with Form VII.

Mohan Rao
Manager HR

What Mr. Mohan Rao says is true.

For renewal - Application Form VII for CLRA and Form IX for ISMCL.

Dear all,

For the renewal process, there is no requirement for Form V. Only the request fee, along with the original license, is needed.

Best regards,
Anupam