Can We Send Our Employees to an MNC's Site for Sub-Assembly Work Without Extra Licenses?

Dear Seniors,

We have a factory license with an employee strength of 200 as per the Karnataka Factory Act. We are engaged in job work (Sub-Assembly) for various companies. Recently, we have received an order from an MNC company for sub-assembly work (sub-contract). They will be providing the building, power, etc. I have a query regarding whether we can send our employees directly to their building for the sub-assembly work, or do we need to obtain any other licenses. If a labor license is required, could you please guide me on how to obtain it? Additionally, I would like to understand what a standing order is and whether it aligns with our company policy. Also, could you provide details on the registers we need to maintain? Your guidance on these matters would be greatly appreciated.

Looking forward to your prompt response.

Sudha

Hello,

I think you are clubbing too many questions at a time. Firstly, every organization having 50 or more employees should get standing orders certified. The certifying authority is DLC. Standing orders are the rules and bylaws framed for the working of any organization, like leave rules, OT, discipline rules, etc.

You have a factory license, but if you're a contractor working for some other concern, then you should have a valid contract labor license.

Hope this is of some help.

Regards, Rajeev Dixit (9164560076)

At present, I am under pressure to get a Factory Licence for our Assembly unit. However, the issue is that we are only planning to recruit three employees. According to the FAC Act, there should be a minimum of 10 or more employees. Should I proceed with the process while considering these three individuals, or do I need to obtain the license first? Please guide me on this matter.

Regards,
Gokulnathan. J
HR & Admin

Hi Sudha,

You have to obtain a new license. According to the Factory Act, if there is a change in the factory layout, sanctioned power load, and manpower, then you need to apply for a fresh license for the factory. In your case, as you are sending your employees to a new building for work, you need to obtain a new license.

Let me clarify, the main purpose of a factory license is to ensure safety and minimum facilities for employees and hold the occupier responsible if these requirements are not fulfilled. The policy will be the same for many factories within the company.

Thanks,
Manish