Labour Licence For 100 Deploy But 120 In Muster Roll?

jerald
Dear All,
I have a query regarding the labour License.
In XYZ Company, a contractor is having the license for deploying 100 contract labour per day (In the license it is mentioned as “Number of workmen employed as contract labour in the establishment shall not, on any day exceed 100”) but in his muster roll there are 120 contract labour names. Though he is having 120 names in the muster roll the daily deployment of contract labour is only limited to 100.
My query is that the contractor has to get license for all 120 labours or the current license is enough?
Warm Regards,
Jey
bhuvanamr
As long as he maintains the deployment strength of 100, he need not take a license for more than 100. If any day the deployment is more than 100, he needs enhancement.
scope.dinesh
He has to pay an additional fee of 600 RS to the Dy. Chief Inspector of Factories and submit Form I along with the original Form II provided to them for carrying out the amendments.
prasad p k
If he is sending only 100 at a time into the organization, then there is no need for a license. Since he may be sending laborers on a rotation basis for which he has to keep 120 laborers, if in any case it crosses 100, then he has to get a license; otherwise, there is no need.
mahesh s patil
Hi Jey,

He may have 120 employees, but according to the license, he has to maintain records for only 100 employees. It would be better to avoid statutory problems.
sanjay19
I want to know if the contractor is having less than 10 or 20 employees, then whether it is necessary to have a PF License for the contractor or if the contractor can distribute the wages without deducting the PF 12%. Please clarify.
kmlnayyar
Since your organization is the principal employer, it is always advisable to go for contractors who have their registration.
sanjay19
Dear Nayyarji,

Can a contractor be appointed without being registered and having a workforce of fewer than 20 workers? What is the liability of the principal employer in a case where they have not deducted and deposited the 12% PF?

Thank you.
v.k.gupta
Dear friends,

Those suggesting that an amendment in the license for 120 employees is necessary are mistaken. If your contractor is deploying a maximum of 100 employees at any given point in time, there is no need to amend it.
vijayvashisth
Dear Mr. Jey,

&

Very Good Morning to all Site Members,


As you said that contractor is having the license for deploying 100 contract labour per day (In the license it is also mentioned as “Number of workmen employed as contract labour in the establishment shall not, on any day exceed 100”) clarifies your query at your own thus there is no need to amend the Licence.

Contractor and Principal Employer will have to amend the Licence as well as Registration Certificate, if the strength crosses the limit of the strength shown in the R.C. & Licence on any day of preceding 12 months.

Wishes,
From-
VIJAY VASHISTH
Head HR
+ 91 9717989830
Abhay1968
The contractor should maintain the strength of workers up to a maximum of 100 under the current license in his/her muster roll. He can rotate individual workers during the working period. If he needs a greater number of workers for the contract, he must request an enhancement under the current license. He has to pay an additional fee of Rs.600 to the Dy. Chief Inspector of Factories and submit Form I, along with the original Form II provided to them, for carrying out the amendments.
vijayvashisth
Dear Mr. Jey & Site Members,

The Principal Employer & Contractor is liable to amend the R.C. & Licence only at the time when the strength exceeds the limit shown in R.C. & Licence on any day during preceding 12 months.

Wishes,

From-
VIJAY VASHISTH
Head HR
+ 91 9717989830
subhasbiswas
Regarding labor license, there may be 1000 names on the muster roll, but the status of being present in a single day should not exceed 100, i.e., the highest capacity of the license. So, if the number does not exceed 100, then an amendment is not necessary.
naveensingh
I endorse Akpk34. If the contractor deploys more than 100 workers any day in a year, he has to amend his license. There is no doubt about it.

Naveen
Sanjay Jagatap
Dear Jey,

If a contractor is deploying only 100 or fewer workers in any day, there is no need to make an amendment to Form VI.

Regards,
Sanjay
jagadish347
Dear Shri Jerald,

The Contract Labour Act is applicable to establishments that employ more than twenty persons as contract labour. For this purpose, the establishment is required to get registered. It is also applicable to contractors who supply twenty or more contract labourers to any establishment. Such a contractor is required to have a license. Thus, the license is for a particular establishment where more than twenty labourers are supplied.

Irrespective of the number of persons in the contractor's employment, he may enter into a contract with any establishment to supply any number of persons, which may be less than the total persons in his employment.

Regards.
Roomi Singh
Dear All,

I want to know the procedure for getting a labor license as well as what documents we need to submit for the same.
KUMAR .PVVB
First of all, a contractor labor license would be issued by the Dy. Commissioner of Labor, not the Dy. Chief Inspector of Factories. Any increase in the number of contract laborers beyond the permitted limit must be approved by the Labor Department, not the Factories Department. Hope this is correct.

Kumar
Akhil.Gupta
Dear,

There is no need to obtain a license for additional employees because he is only deploying 100 employees.
SN Krishnamoorthy
Hi,

I am also intending to take up the business of supplying contract labor. I have applied for EPF and ESI registration. Is it necessary to obtain a Labor License as well?
SN Krishnamoorthy
Hi, I am also intending to take up the business of supplying contract laborers. I have applied for EPF and ESI registration. Is it necessary to obtain a Labor License as well?
parasurampur
There is no necessity to increase the strength in labour license, so far the number of labours per day does not exeed the licensed limit.
Guntha bijaya
Immediately, the license needs to be amended. You may ask the contractor to approach the competent authority from whom the license was issued earlier. Additionally, they can guide you through any problems you may encounter.
prashant_nair
Dear all,

As far as the XYZ company is concerned, the license of the contractor for 100 labor suffices as the deployment is limited to 100. But as regards the contractor, his license has to reflect the muster roll strength. So there is a need on his part to amend the license for a strength of 120.

The appointment of a contractor with fewer than 20 workmen is to be seen in the context of the establishment in which the work is actually done. If the establishment has twenty or more workmen, then the Act applies. A contractor having fewer than 20 workmen is not covered under the Act, but if the establishment is covered under the Act, the statutory authorities can seek enforcement of the Act against such contractors too. In such cases, it is the liability of the principal employer to ensure all compliances. Hence, a safer option in all establishments with 20 or more workmen will be to have contractors who are licensed, having independent PF, ESI code, etc. This will save the principal employer from the liability of compliances.

Regards,

KK
girishmahajan
If the labor is increased, you pay a specific fee at SBI Bank for these laborers and add 20 laborers to your current license.

Please let me know if you need further assistance.
pntbhasin@rediffmail.com
If the contractor uses more than 100 laborers, he/she must amend their license, which is compulsory.
bisht_vikram2003
I am working at XYZ Co. Please provide the information. We need the contract license, but it's not clear in which area the license is required. To the best of my knowledge, the processes are only for housekeeping, gardening, loading/unloading, and canteen services. Therefore, I kindly request clarification on the above matter. Thank you.
Neer300182
Dear Jey,
As per The Contract Labour (R & A) Act, 1970 licence always taken on the employed number of employees as mentioned in your muster roll
We usually take licence as per employee count on a Peek day.
So pls take a licence and cover all your employee under it otherwise you have to face Labour Compliances
Glidor
The limit is set for a single wage period (wages payable at the end of), it may be daily/weekly or monthly. In any wage period, the strength should not exceed the granted limit.
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