Is Our Client with Contract Labor Covered by the Contract Labor Act? Seeking Guidance on Rules and Procedures

Hello everyone,

I am Anirudh, a student of ICAI, and one of our clients is registered under the Shops and Establishment Act as a listed company. My query is whether the said client, who has engaged contract labor, is subject to the Contract Labor Act.

In such a case, please inform me about the Shops and Establishment Act and how to verify the applicable rules and procedures.

Thank you.

Dear,

For applicability of the Rules & procedure applicable to your client's establishment, you have to go through your applicable State Shops & Establishment Act and the Rules made thereunder. If you have engaged 20 or more contract laborers through one or more contractors, then you will be covered under the Contract Labour (R&A) Act, 1970.

With Regards, R.N.Khola

Security companies fall under the Shop and Establishment Act. If so, what is the procedure?

Dear,

If the security company has its office situated in an area where the State Shops Act is applicable, and if the office is covered under the applicability clause in that Act, then that office will be covered under the Shops Act. To get it registered, you have to go through your applicable Shops and Establishment Rules.

With Regards, R.N.Khola