Outsourcing Manpower: Do We Need Additional Licenses or Registrations?

We are a private limited company, registered with Provident Fund (P.F) and Employee State Insurance (ESI), employing more than 100 individuals. We are now looking to outsource our manpower. Please advise if any licenses or registrations are required for this purpose. Additionally, we are interested in outsourcing this manpower to our customers. Your valuable suggestions on this matter would be greatly appreciated.

If you want to employ 20 or more employees through a contractor or through more than one contractor, you have to get registration under the Contract Labour (Regulation and Abolition) Act. This registration, once obtained, will be valid for any work connected with the function for which it is obtained.

If you want to engage your employees in any other companies as contract labour, you have to obtain a license to engage contract labour as a contractor under the same Act. This license is valid for one year and renewable thereafter.

In the former case, you will be acting as the Principal employer, whereas in the latter case, you will act as a Contractor.

Regards,
Madhu.T.K

Please provide me with the various monthly returns required under the different statutes in a factory, as well as the registers that need to be maintained in West Bengal.

Thank you,
Manas Ghosh

Thank you very much, Madhu T.K., for the valuable information. Actually, we want to hire employees on a contract basis from another contractor and then supply this manpower to another company. In this case, what formalities and liabilities should we consider?

In that case, you will be acting both as the principal employer and contractor. Therefore, you may require both registration and a license under the Contract Labour (Regulation and Abolition) Act.

Regards,
Madhu.T.K

May I add a bit. In J&K, there is the local Contract Labour (A&R) Act applicable in the state of J&K on the activities (industries) not covered under the Central Act.