Do Companies Need a License for Third-Party Security and Office Staff Under the Contract Labour Act?

If a company employs security staff and other office staff (drivers, office boys, housekeeping) through a third party, will the company require registration/license under the Contract Labour Act, 1970.

The company employing 20 (total even through 3/4 contractor) or more than 20 employees as contract laborers needs to obtain a registration certificate under section 7 of the said Act from the concerned labor authorities. Then, they need to issue Form V with a copy of the RC to the contractor if the contractor deploys 20 or more than 20 employees.

The contractor needs to obtain a license under section 12 of the said Act from the concerned labor authorities.

Dear,

The Private Security Agencies (Welfare and Regulation of Employment) Act 1981 regulates the welfare and employment of private security guards through the control of district security guard boards. In cases where the License (LC) is not applicable, the provider is exempt under the act as long as they fulfill all necessary compliances under the statutory norms.

Bijay

Dear Sir,

We are going to start a new project in Bihar, and our civil work and security arrangement will begin within 3 weeks. When will it be necessary to be registered for our principal employer under the Contract Labour Act? It is proposed that we will engage a third party for the civil job (maximum of 400 labourers to be engaged).

Please advise on the fees and formalities as well.

Thank you.

Dear Raj,

The principal employer needs to be registered under The Contract Labour (Regulation & Abolition) Act, 1970. The procedure for registration is to have the agreement copies of your company with the contractor(s) along with the prescribed fees which you can very well inquire about in the Labour office to find out the exact fees.

As for security services, based on my experience of having worked in Maharashtra, there is a regulating body by the name of Security Guard Board under which the principal employer needs to get registered. If there is any such body existing in Bihar, please find out. The process of registration is the same.

Regards,
Amit

Dear friends,

I think for employers' registration, there is no need for agreement papers with anybody. First, the employer has to be registered under the act, and after that, he can issue Form V to any contractor.

Please advise in this way also.

Documents Required for Contractor Permission from the Labour Department

Please note the documents required for Contractor Permission from the Labour Department:

• Application Form (in triplicate)
• Factory Act License
• Partnership Deed
• PAN Card
• Photos of (2) authorized signatories
• Regulations
• Agreement with Contractor
• Affidavit

Additional Documents for Contractor Permission

For Contractor Permission from the Labour Department, the following are also required:

• Form 5 issued by the company
• Contractor RC Copy
• Fees

Thanks,
Ravinder Sharma

If we have already registered our company under the Contract Labour Act, should we register or renew it every year? Or should we maintain other instruments as an employer?

I am already running a private limited company that relates to manpower consultancy. Should I acquire a labor contract license for my company?

Regards,
Kiran
[Phone Number Removed For Privacy Reasons]

Hi, if the principal employer is deploying 5 contract laborers, does the principal employer have to register under the Contract Labor Regulation and Abolition Act, 1970?

Thanks,
Karthi

Hi All,

We are taking transport facility for our employees' pickup and drop from a third-party vendor. In such a case, do we need to register our company under the CLRA act? Please suggest. We are using cabs for pickup and drop only.

Thanks,
Sandeep Yadav
9711996452

My company has 15 contractors, but out of the 15, 7 contractors' manpower is 5/8 employees. Please suggest whether I have to register them in R.C or not.

Please post your suggestions on priority.

Dear Member,

If you are employing 50 or more contract workers through different contractors, then you are required to apply for RC under the Contract Labour (R&A) Act, 1970, and Rules made thereunder. Now, you need to determine whether 50 or more workers are working with these 15 contractors or not and then take action accordingly.

R.N. KHOLA