Labour License Dilemma: Do I Need to Show Records Before the License Date?

Dear sirs, We applied for a Labour license on 15th Oct 2010 and received it on 25th Oct 2010. However, I have engaged the worker since 1st Oct 2010. I have submitted PF and prepared the wage sheet for this work since 1st Oct 2010.

Question About Wage Sheet Submission

Now, my question is, for the Labour Department, will I have to show the wage sheet and other registers after the license date (i.e., 25th Oct 2010) or will it be acceptable from 1st Oct 2010?

Please reply urgently. I am waiting for your response. Thanks in advance.

Regards,
G K Sharma

Do not worry, the labor department is not very active, so they will not ask you for all these details. If they do ask, you can show them the sheet.

Please elaborate on your views on this topic. Can I start preparing from 1st October 2010, despite receiving the labor license on 25th October? If they ask why you engaged your worker without receiving the labor license?

Thank you.

Understanding Labor Department Rules on Licensing and Contracts

The basic rule of the labor department is that first, let the contract start, and then the license will be issued. This is because many times it has been found by the labor department that the license issued first is not in use, and unnecessarily the labor department has to maintain the records of the contractor. Hence, you are not at all wrong. Don't separate the wage register.

You had applied for the license, which means it is applicable to you. Therefore, please maintain all relevant documents from the date of application. As rightly mentioned by Mr. Malik, the Labour department is not very active in checking all the records. However, from your side, you need to maintain records in accordance with the law, as they may ask for it at any time.

Hope this information is helpful.

Regards,
Shaikh

Dear All, we are in the hospitality industry (restaurant), so should we have a labor license or not?

Regards,

Dear Mr. G.K. Sharma,

There is nothing wrong with showing the wage register or wage sheet from 1st Oct 2010 onwards. If you start showing the wage sheet from 25th Oct, in the future, you may face other legal aspects like accounting, service tax, and TDS, etc.

Hope for the best.

Regards,
UKS
[Email Removed For Privacy Reasons]

Thanks to all. Sharma G, you've done it right. You can prepare wages since 01 Oct. because you already have the license. No need to worry, the list of employees you have already deposited in the department. Best wishes.

Dear Mr. Sharma,

You can only apply for a labor license after you have been awarded a contract. It is required only if you employ 20 or more contract laborers at any single location. You can commence work and apply for the license within a reasonable period of time. You have done very well to have obtained the license within 25 days from commencement. You are absolutely on the right side of labor law.

Since you commenced work on 01 October, you need to maintain your account books and details with effect from the same date. Agreed, the labor department may not check all details, but the fact remains that they can! After all, these are measures for the welfare of the labor class. Also, by doing so, you would be looking after your personnel, keeping your books immaculately, and will continue to remain on the right side of the labor department.

To your success!

Regards, Colonel Gahlot TRURECRUIT

You can only apply for a labor license after you have been awarded a contract. It is required only if you employ 20 or more contract laborers at any single location. You can commence work and apply for the license within a reasonable period of time. You have done very well to have obtained the license within 25 days from commencement. You are absolutely on the right side of labor law.

Since you commenced work on 01 October, you need to maintain your account books and details from the same date. Agreed, the labor department may not check all details, but the fact remains that they can! After all, these are measures for the welfare of the labor class. Also, by doing so, you would be looking after your personnel, keeping your books immaculately, and will continue to remain on the right side of the labor department.

To your success!

Regards, Colonel Gahlot TRURECRUIT

By all means, you have to prepare all your records of concern from the date when you deployed/engaged contract laborers at your premises. Because from that day (1/10), your company becomes the Principal Employer as per the definition mentioned in The Contract Labour (R & A) Act. Your liability includes informing the controlling authority of the appropriate government on or before the date of deploying contract labor, which you have done in a timely manner. Therefore, there is no need to worry; start preparing your compliance from the date of deploying contract laborers.

Best wishes to all on the 62nd Republic Day. VANDEMATARAM. JAI HIND.

Regards,
Nitin Parab

It will be applicable if you are providing or employing contract labor and the minimum number is 20, no matter which sector you are in. For details, you may refer to "The Contract Labour (Regulation and Abolition) Act" of your state.

Regards,
Shaikh

Dear Malik, Your comments and suggestions are very good. I am also dealing with 1,500 contract laborers. We applied for Form V four months ago, but we have not received any information from the Labour Department yet. I agree that as employers, we must maintain all the documents for statutory compliance as the situation demands.

Regards,
K. Raja Sekhar
Labour & Welfare Manager

Submission of Form VI B Under CLA

You have to submit Form VI B under CLA to the Labour Officer (Intimation of Start of Contract Work). If the workers engaged are fewer than 20, no license is required, but it is mandatory to maintain all the registers.

Regards,

There is no problem with showing your registration to the labor department because you have complied with the statutory requirement of the number of engaged persons on your license. However, you may be held accountable for violating the limit.

Regards,
Basanta

You have to submit a Form VIB under CLA (Intimation of start of the contract) to the Labor officer first. A Labor License is required if you have engaged 20 or more contract workers.

[QUOTE=gksadvance;1419511]Dear friends, Thanks for your valuable views. However, I am still confused about maintaining the register from October 1st.

Hi GKSAdvance, The register you maintain is a reflection of the details of the personnel you employ. It is relevant not only to labor welfare but also to EPF, ESI, and the filing of your income tax returns. So why are you linking it only to the labor license? Simply put, the labor department has permitted you to apply within a reasonable time after you commence work. Therefore, it is obvious that you will get your license after you have started work and maintained the details of the same.

Maintaining the register from the date of commencement will also ensure that you will be able to bill your principal employer and pay your employees correctly as per your books. It is the formula for perfect peace - 'SHANTI'!

Regards, Colonel Gahlot TRURECRUIT