Contract Labour Applicable - Doc Download

I do not have clarity on applicability of Contract Labour Act to organisation. When the State rules applicable and when the central rules applicable? Please give clarity on it.

Dear Mr. Krishna,

Good Evening :)

Licence is purely based on principal Employers registration

The Contract Labour (Regulation and Abolition) Act is a Central Act. But the State being empowered to make rules, the state government will have separate rules but subject to the provisions of the basic Act only. Therefore, the rules may be similar. If there exists any variation regarding licensing procedure or renewal procedure the rules set by the state will have to be followed.
Regards,
Madhu.T.K

Dear
For applicability of the Contract Labour (R&A) Act, 1970 to any establishment we are to examine section 1(4) of this Act. This Act applies to every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour. As far as the applicability of the Rules are concerned we should go through the definition of the 'appropriate Govt.' & finalize the applicability of the Central or State Govt. & if State then which State & then if State then that State Rules will be applicable where our establishment is situated otherwise we are to adhere to the Central Govt. Rules.
With Regards,
R.N.Khola

sir,

i am in a government organisation (herein referred as principal employeer) and we have around 10 job contracts with various contractors. 5 contractors are employing 15 to 20 personnel and the remaining 5 are employing more than 30 employees. All these contract people are working in the premises of the principal employer everyday from 0900 hrs to 1700 hrs. Since I am new to this assingment I need clarification on the following:-

(a) Whether the Principal Employer has to get registered with the labour commissioner for licence eventhough its a government organisation? If this government organisation is defence organisation and prohibited place then what are the orders on this subject?

(b) Is it necessary for the contractor to have licence under the Contract Labour Act?

(c) Other than the salary what all payments has the contractor to make such as EPF and ESI? Is this amount that he pays to the employees supposed to be reimbursed by the principal employer? If yes How?

(d) If the Contractor fails to pay the EPF and ESI is the principal employer liable to pay the same? and how is the contractor to be penalised?

(e) Can you mail me the sample copy of a contract which is to be awarded (interested in the legal language - how to ensure Contractor has a licence, how he pays EPF,ESI and how he shows the proof, The penalty clause if he fails to pay them, medical insurance? etc etc.)

Thus you can see that I am totally ignorant about these contracts and so are all of them in my est. We have been doing this for 3-4 years but unfortunately nothings happened but now that I am aware that such thing exists we want to be sure that we correct our mistakes.please guide me correctly. thanks

sir,

i am in a government organisation (herein referred as principal employeer) and we have around 10 job contracts with various contractors. 5 contractors are employing 15 to 20 personnel and the remaining 5 are employing more than 30 employees. All these contract people are working in the premises of the principal employer everyday from 0900 hrs to 1700 hrs. Since I am new to this assingment I need clarification on the following:-

(a) Whether the Principal Employer has to get registered with the labour commissioner for licence eventhough its a government organisation? If this government organisation is defence organisation and prohibited place then what are the orders on this subject?

(b) Is it necessary for the contractor to have licence under the Contract Labour Act?

(c) Other than the salary what all payments has the contractor to make such as EPF and ESI? Is this amount that he pays to the employees supposed to be reimbursed by the principal employer? If yes How?

(d) If the Contractor fails to pay the EPF and ESI is the principal employer liable to pay the same? and how is the contractor to be penalised?

(e) Can you mail me the sample copy of a contract which is to be awarded (interested in the legal language - how to ensure Contractor has a licence, how he pays EPF,ESI and how he shows the proof, The penalty clause if he fails to pay them, medical insurance? etc etc.)

Thus you can see that I am totally ignorant about these contracts and so are all of them in my est. We have been doing this for 3-4 years but unfortunately nothings happened but now that I am aware that such thing exists we want to be sure that we correct our mistakes.

for banking,insurance etc businesses central authority and commercial establishmets is state authority.
IT DEPENDS ON THE NATURE OF BUSINESS AND CONTROLLING AUTHORITY.

Re: Contract Labour Applicable
Hi Sabira, I have attached my comments which may be useful to you.
Regards
Balamurugan Sivaprakasam
Head-HR, ICIL - MM Nagar

The question was answered in a different thread also. Please follow the link.
https://www.citehr.com/235995-job-co...ontractor.html
Regards,
Madhu.T.K

Dear Sabira,

Heare is the answers of your questions -

a) The principal employer has to obtain registration under the act irrespective of the fact that it is a Govt. or private organisation.

The Contract Labour (R&A) Act applies to (i) every establishment in which twenty or more workmen are / were employed on any day of the preceding twelve months as contract labour, and as per Sec.2(1)(e), establishment means any office or dept. of the Govt. or a local authority, or any place where any industry, trade, business, manufacture or occupation is carried on.

b) no contractor, to whom this act applies shall undertake or execute any work through contract labour without obtaining license.

c) There is no rule for reimburshment of PF and ESI amount paid by the contractor from principal employer. Basically it depends upon the contract made between principal employer and contarctor. Contractor fixes his rate including all the component of payment.

d) if contractor fails to meet statutory requirements, principal employer becomes liable and to get the contractor penalised you may stop payment untill and unless the contractor clears all the statutoru dues.

e) for sample copy of contract you please provide your mail ID.

To ensure whether the contractor complying with the statutory requirements -

get the following documents -

i) PF challan every month by 16th

ii)ESI challan every month by 22nd

ii) Half yearly return by every 6 months (jan & July)

iii) Renewal of license every year.

Regards,

Debrishi