Contract Labour Act - Contract Act [Thread 339820]

Dear All,
Please let me know if a contractor does not take license form the Appropriate Govt of the Principal Employer, and execute the job with the total consent of Principal Employer, who is defaulter and who is punishable? And under which provision.?
Thanks & Regards
S.Saha

HI Mr. Saha

Don't confuse, If your company are working in any location in India as contractor or Employer and engaged 10 or more with aid of power or 20 or more labor without aid of power you require labor license of each location (whether you are working for Central Govt. or State Govt) and have to shown in your premises.

Now in above case this is your liability to to get labor license from Labor department once you get the work order from Principle employer, if you don't you would implicate in Contract labor Act under section 10 A and there may be possibility that your employer (Proprietor) will face a case in this section and may issue a non-bailable warrant .

Moreover your monthly payment will be withheld by the principle employer if you don't take license from labor department.

(Note- what is mention in NIT, this is matter most cause no principle employer intendant to implicate himself in any legal abidance once they give the job to contractor and the contractor is the sole responsible for their affairs.)

irrespective of labor license, in E.P.F and E.S.I condition, contractor can use principle employer Account number.

Have A nice day

Thanks for reply. But the case is that, the service providing organization is registered as principal employer at state and the Main organization is registered at Principal employer at Central. There is an agreement between both parties to execute the job and providing the service. This practice is prevailing throughout the India and the same organization provides the services all over the India where the main organization exists.
The ALC of central “Show caused” seeking for contractor license (Central) to the service providing organization.
The case has been dismissed at Gujrat High Court and ordered to maintain the Principal Employer status through “State”.
Now, at the Other Sate, the ALC central is intending to do the same despite of the High Court Order.
Whether is the Act of ALC (Central) contravening the High Court order?
Thanks & Regards,
S.Saha

HI Mr. Saha,
Just See, you are working for central Govt work or State Govt work.
And accordingly apply for license, if you are working for central Govt work in any state like Railway, Mining etc. you require to get Labor license from central and same procedure for state Govt.

Dear Mr. Saha,
Greetings …..
When you are putting up a query you have to provide maximum information relating to the issue for one to understand the exact nature of the problem. Here you are silent on the type of industry you are operating in. In fact that is the factor that decides the “Appropriate Authority” for you either as “Principal Employer” or as “Contractor”. Tussle between Central Labour Office and State Labour Office is perpetual. Both the authorities, however, would never face each other even in a Court of Law.
I wish to quote an incident here when a Civil Construction Company was entrusted contract for Pile Foundation and Construction of Civil Works by ONGC in connection with building of Staff Accommodation. As was known even to ONGC as well, they asked the Contactor to contact the Central Labour Office and issued FORM V to them. The Contractor accordingly submitted and obtained Licence under the Act from Central.
Problem started when the State Labour Office peeped into the work activities at site and issues a “Show-cause” leading to prosecution for “Not obtaining License” from State and charged the Contractor with heavy Penalty. There were protests both from the Contractor and the Principal Employer and the case went to adjournment for decision of an Arbitrator. After nearly 1.5 years it was decided that though ONGC is in Oil & Gas Sector, the very nature of the Contract work executed (Pile Foundation and Construction of Civil Works) has no connection with Oil & Gas and hence, it has to be State Labour jurisdiction.
So, kindly be very specific with you queries please.