Contracting Company Dilemma: How to Obtain Form 5 from the Principal Employer?

Hi,

I have a query about Form 5. Actually, we are a contracting company with an agreement in place with another company. Our workers have been working there for six months as per the contract. However, they have not issued us a Form 5 under the contract act.

What is the legal procedure and other processes involved? Please help.

Contractor License Requirement Under the Contract Labour Act

For any contractor with more than 19 employees, it is compulsory to have a license from the authorities under the Contract Labour Act. In order to apply for a license, you need Form 5 from the employer. I do not understand why your principal employer has not issued the form. They are at high risk if you do not have a license. Technically, you are required to obtain the license (or at least apply for it) before you commence work. It is crucial to convince the principal employer of the critical nature of this requirement.

Dear Yagnesh Shan,

As per your reply yesterday, you mentioned that because of the renewal of the labor license, you need Form 5. According to the Contract Labor (Regulation and Abolition) Central Rule 1971, Rule No. "29" states that the renewal of the labor license should be done in the mode of Form VII (Triplicate). You should apply for such a renewal not less than 30 days before the date on which the license expires.

In response, I would like to clarify that due to the renewal of the labor license, there is no need to attach Form 5. Instead, you should attach Form VII.

Thank you.

We have talked to the principal employer many times, but they keep delaying, and now 6 months have passed. Are there any legal procedures or ideas on what to do? When the auditor asks, what should we say? Can the labor inspector understand? Please reply.

Have you sent a request letter to your principal employer for issuing Form V? If you have already done so, it is your responsibility to receive the acknowledgment copy of the same. In the future, you may need to show this to the labor inspector in case Form V is not issued.

Please let me know the purpose for which you are requesting Form V. In my previous reply, I clearly mentioned that due to the renewal of the labor license, there is no requirement for Form V. Therefore, it is important to clarify why you are seeking it. If your principal employer has already provided Form V earlier, you do not have the right to request it again. However, you can ask them to issue a copy of the same.

Thank you.

Thank you for the reply. As per HR's suggestion, we have sent a request letter, but we have not received any response. I understand that the renewal license document does not require Form 5, but I still need to present it to the labor office and auditors.

Question About Form V

My question is, can we do nothing about this issue? Is it not important? Is Form V unnecessary?

Please advise.

Form 5 and License Renewal

Form 5 is useless once you have the license. Once you have the license, you do not need Form 5. I hope you are aware that the renewal needs to be applied for at least 60 days prior to the expiry of the license.

I will give you the next or last option to get a copy of Form V. You may also approach the labor office (Attender level) because, during the issuance of the labor license, your previous HR must have submitted the original Form V to the labor office. So, there is also another chance to get it. Even I don't understand why your principal employers are not issuing the copy of Form V. Recently, we also requested our principal employer for the issuance of a copy of Form V through our request letter. The same day, they issued the copy of Form V. However, in your case, I still can't understand why they denied issuing the copy of Form V. Wishing you a happy Diwali to all.

Dear Rajan Associates, please put up a letter to them explaining the risk of not issuing Form V and wait for their response.

For more information on legal compliances required in the staffing industry, you may refer to the following link: Legal Compliances Required in Staffing Industry.

Thank you.

Hi all,

Form V is not issued by our Principal Employer either. We have all labor records ready, but what should be done legally to obtain it? Will both the contractor and principal employer face trouble if the license is not obtained? What steps can be taken in this case?

Thank you.