Can We Get a Combined Contract License for Our Nearby Factory Units? Seeking Advice!

Hi all,

We operate small factories in different locations, all under the same name and within a 2 km radius. Each unit holds an individual factory license. I have a question: Can we obtain a combined contract license under the Contract Act from the IOF for these different units?

- Unit I: 10 contract employees
- Unit II: 8 contract employees
- Unit III: 20 contract employees
- Unit IV: 20 contract employees

Please share your suggestions.

Cheerio,
Muthu Rajakumar

Dear Muthu,

Registration of establishment under the Contract Labour Act is required for the premises where contract labour is deployed. It would be in your favor to apply for separate registration for each unit if you have engaged 20 or more contract labourers. Since you have obtained separate factory licenses for each unit, you should maintain distinct identities for each unit in all respects.

Regards,
Anil Kaushik
Chief Editor
Business Manager
Smriti Sadan, 28, Raghu Marg, Alwar-301001 (Rajasthan), India
Mobile: 09829133699

Dear Muthu,

First, clarify whether you are engaging a contractor or if you are a contractor.

If you want to engage a contractor, then follow Mr. Kausik's suggestions.

If you are a contractor, obtain Form V separately from every owner of the factory where you have engaged 20 or more laborers and apply for the license for each factory individually.

N. N. Tiwari
Indore

Hello,

At which stage is the employer liable for a contract license? Is it at the very initial stage, or can any factory employ less than 20 contract employees without a contract license? Which one is true? Please help me out.

Dear Manisha,

To get to know the ins and outs of engaging contract labor, you can attend the program organized by AIMA (All India Management Association) on 9th & 10th July 2007 in Pune. They are also organizing the same program in Chennai on 4th & 5th July 2007.

I have already attended the program two years back. The program is very useful and informative for HR professionals.

Title: Managing the Contract Labor
Contact person: Ms. Nidhi Harnal
All India Management Association - CMD
Management House, 14, Institutional Area
Lodi Road, New Delhi - 110 003
Ph. No: 011-24635544, 24617354
Email ID: nidhi@aima-ind.org
mdp@aima-ind.org