Navigating Contractor Compliance: Do Subcontractors Need Their Own Labor License?

Dear seniors, please guide me if we have engaged one major contractor and he has a license for hiring contract labor. If he awards work to a subcontractor, then:

1. If the major contractor maintains records and compliance on his own account on behalf of the subcontractor, does the subcontractor need a license individually?

2. As the principal employer under the BOWC Act, the PE is responsible for all compliance of the major contractor.

Thanks and regards,
Pranav

The definition of 'Contractor' under Sec. 2(1)(c) of the Contract Labour Act includes a subcontractor as well. Going by the language of Sec. 12, read with the relevant Maharashtra rules (please refer to your state rules) and the prescribed Form of license, it appears that the main contractor is responsible for all compliances.

Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
Tel: [Phone Number Removed For Privacy Reasons]

It means if a major contractor has a labor license for 2000 workers, can he appoint a subcontractor without a labor license, right? However, all compliance should be handled by the major contractor on his account.

Regards,
Pranav