Contract Labour License - Labor Contract [Thread 386759]

Dear All,
Just a smal querry wants to share with you all and need your views over it.
Whather it is mandatory for a contractor to obtain labour licence in case if worker employed by them is less than 20.
What if we have job contract with them.
We have shown them as our contractor in the license obtained the labour office.
Please advice.
Regards
Ranjeet

It is better to have a license so that the liability of the principle employer shall not be there. If the employees of contractor working in your premises then better to have a licence.
Regards - kamesh

Dear Jeeni
In terms of sec. 12 read with section (1) of the Contract Labour Act 1970, a contarctor who employs twenty or more contarct labour to execute any work through them is to obtain license under the Act. If he is employing less than twenty contract workers at any point of time, he need not have license under the Act. However, in my view, a contractor who executes work through contract labour in more than one establishment, is also required to take license, if the numbe rof contract workers in all the establishments is 20 or more, although he employs less than 20 contract labour in one establishishment.
However as Pricipal employer, it is advisable to enagage a contractor who has labour license.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
Mob: 09930532927

Dear Sir,
The Contract License shows that the contract labor belongs to a particular contractor and
works for the Employer through Contractor for contract works. The indirect relationship confirms
by the contract.
Whereas if the Contract Labour License is not there, there is every possibility of the labour
working will be construed as direct labor employed by the employer. The contract between
yourself and contractor will not hold good. In case of any risk the employer is liable.
D.Gurumurthy
LL.HR&IR Consultant

As rightly mentioned by Mr.Gurumurthy better to engage contract labour through contractor and if you don't require 20 better to engage 20 for some time obtain licence and after wards reduce the number so that you are safe failing which the labour working will be construed as direct labour and there is every chance of raising an issue of regularization over a period of time.
Regards - kamesh

Dear All,
Thanks for your replies which bang on direct.
We have engaged contractors like for horticulture wheirein we have job contract with them.
Does such regulation is mandatory for them.
can you give me the reference of cases wherein such disputes regarding employment occurs due to non availability of the Labour license even number of employees engaged by them is less than 20.
This i would require to take up with my manager.
Regards
Ranjeet

Hi Ranjeet
This is a reply to your querry posted in connection to conditions for obtaining the Labour license of contractors.
The central rules for contract labour (Regulation & abolition) Act 1972
The condition for obtaining the labour license is as mentioned below:
if(no .of contract worker)>=20.
Its principal employer responsibility to obtain for the labour license.
if we have job contract with them then it depends upon the work order with the principal employer and what is the no of manpower as proposed in the work order.
Regards
Bhagat Singh
Hr executive
Shree Nakoda Ispat
Raipur(c.g.)
8085380091