Contract Labour Act Confusion: Do Principal Employers Need Building-Wise Registration?

Hi all, I need clarification on whether it is necessary for a principal employer to obtain building-wise registration under the Contract Labour (Regulation and Abolition) Act.

Hi,

If you have a premises/building where you are getting some work done through a contractor, whatever employees are hired by your contractor are covered under the contract act. This contractor must obtain a license from the labor department for hiring contract labor and working on a contract by paying necessary fees, etc.

Also, your company, being the employer, must have the license to hire a contractor for any kind of work, whether security, housekeeping, etc.

I hope this is clear now.

Regards,
Umesh
(welcomeumesh@yahoo.com)

Hi Umesh,

Thanks for your reply. I am asking for CONTRACT LABOUR REGISTRATION only. I know the license procedure, but for registration as a Principal Employer, is it necessary to obtain a REGISTRATION CERTIFICATE for each building separately if I have 4 branch offices in Delhi?

Regards,
Sandip

No, you don't need a separate license for every premises. In order to do that, you need to issue Form 5 to every contractor who is working on your sites.

Regards,
Umesh Chaudhary
(umesh.chaudhary@ril.com)

Hi Sant,

As per the act, every PE who is engaging a contractor should have registration. This means the PE employer must have registration. One PE can have more than one establishment, and they can obtain one RC for all. Please correct me if I am wrong.

Thank you.

All the registrations are handled by the jurisdiction of the Assistant Labour Commissioner. Therefore, please ensure that the location details are provided for the Registering Authority under which the ALC falls.

Hi,

I'm Iqbal Channa, a labor law consultant. I am sending you the Contract Labour Act file. Please read it, and if you have any queries, feel free to call me at 09914241508 or email me at [Login to view].

Regards,
IQBAL SINGH CHANNA
09914241508

Hi,

Although your company is one entity, as mentioned by you, you have premises in four different locations. It is necessary for you to obtain a separate Registration Certificate (RC) for each location with a detailed address. Each location constitutes a separate establishment.

Best wishes,
Ram K Navaratna

If a Principal Employer (PE) has taken a new office and is undertaking interior fit-out construction works but does not possess the Required Certificate (RC) and Form II under the Contract Labor Regulation and Abolition (CLRA) for this new office, how can they issue Form V to the contractor? Suppose they are able to do it, what is the process for issuing it?

Your question is not clear.

Registration Requirements for Principal Employers

If a Principal Employer (PE) is engaging 50 or more contract laborers, the PE needs to apply for a Registration Certificate (RC) and issue Form V to the contractor. If any contractor is engaging more than 50 workers at the same location, they need to obtain a license under the Contract Labor Regulation and Abolition (CLRA) Act.

No, it is not necessary to obtain building-wise registration as a principal employer under the Contract Labour (R&A) Act, 1970. A single registration is sufficient for all the establishments of a principal employer, irrespective of the number of buildings or premises they may have.

Definition of Principal Employer and Establishment

The Act defines a principal employer as "any person who, for the purposes of any work, employs contract labour in an establishment." The term "establishment" is defined as "any place where any industry, trade, business, manufacture, or occupation is carried on."

Therefore, if a principal employer has multiple establishments, they can obtain a single registration for all of them. However, the registration must be obtained from the Assistant Labour Commissioner (ALC) in whose jurisdiction the principal employer's main office is located.

Registration Process and Validity

The ALC will verify the application and, if it is found to be in order, will issue a certificate of registration to the principal employer. The certificate of registration will be valid for a period of three years and can be renewed for a further period of three years.

Compliance Requirements for Principal Employers

It is important to note that the principal employer is required to comply with all the provisions of the Contract Labour (R&A) Act, even if they have obtained a single registration for all their establishments. These provisions include the following:

- The principal employer must ensure that the contract labour is not employed in any hazardous or unhealthy work.
- The principal employer must provide the contract labour with the same facilities as are provided to their own employees.
- The principal employer must pay the contract labour at least the minimum wages prescribed by the government.
- The principal employer must maintain a register of all the contract labour employed by them.
- The principal employer is also required to submit an annual return to the ALC in respect of the contract labour employed by them.

I hope this clarifies your query. Please let me know if you have any other questions.

14 days working 12 hours base, 15 workers and 14 days other batch is coming, remaining 14 days leave, so a total of 30 workers.
i want to apply foam 3 or 5. As per the act, per day, 20 more workers form 5 applicable
Please advise me