Navigating Contract Labor Registration: How Do I Get My Company and Contractors Certified?

Dear Friends, I have recently joined as HR in a manufacturing company in Pune. My company, as the principal employer, has five contractors with more than 20 workers working full-time. My company has not yet received the 'Registration Certificate' and hence none of the contractors have a license as well.

Steps to Obtain the Registration Certificate

I want to get my company registered under the act and obtain the 'Registration Certificate.' I also want to assist the contractors in obtaining a license under the Contract Labor Act 1970.

Would you please guide me on the steps for each in detail, including the documentation required to be maintained by contractors and the principal employer, as well as the documents to be submitted to the Labor officer along with necessary attachment details?

Regards,
Sapna

Obtaining Registration Under the CLRA Act

For obtaining registration under the CLRA Act, you have to apply to the Labour Officer of the respective District in the prescribed form (Form 1) along with the prescribed fee, which depends on the number of contract labor (total number under all contractors put together). Please ensure that the nature of work to be specified should not be directly related to the routine work in your establishment, as no registration will be granted if you intend to engage contract workers in works directly related to the core activity of the company where you can engage full-time regular workmen.

Once you get registration, you can advise the contractors to take licenses by applying in Form III (or IV, I don't remember!). For that, you have to give each contractor a certificate in Form V that you have engaged that contractor to do the work as specified. With that, the contractor will be able to obtain a license, which is issued for a year and should be renewed yearly following the same procedure. At the same time, the registration that you, the Principal employer, take is a one-time registration.

Regards,
Madhu.T.K

Hi Madhu, the information you provided is really useful. Could you please elaborate on the attachments required for each Form 1, such as the MOA, factory license, and any other necessary documents? Similarly, I would like to know the attachments needed for Form 4 for a contractor's contact license, like Form 5 and others. Do the documents need to be attested before submission? Also, should the application be made in triplicate or duplicate?

I would appreciate it if you could provide more details on these matters.

Regards,
Sapna

The process of obtaining Registration is explained by Mr. Madhu correctly. Please buy a book (Contract Labour Act) from Ajit Law Book, Pune. You have all forms in that book. Once again, I am giving you the proper process:

1. Apply R.C in Form-1 by mentioning all contractors' names, nature of job, number of employees, and contract period. You need to attach a list of Directors (In Letter Head), Memorandum of Articles along with Form-1.

2. Once you receive the Registration copy, then give notice of commencement in Form-6B to the labor department.

3. Simultaneously issue Form-5 to the contractors (on your letterhead) and obtain acknowledgment from them.

4. Please ask the contractors to apply for the Contract Labour license in case they exceed 20 employees. (It's solely the contractor's responsibility).

5. Kindly ask them to obtain the license immediately and give notice of commencement in Form-6A. Please obtain acknowledgment of the same.

6. Request the vendors to submit half-yearly returns in Form-24 (Jan'12 - June'12 and July'12 - Dec'12).

7. You need to submit annual returns in Form-21 by 15th Feb'12.

Apart from this, you have the responsibility to conduct regular statutory audits of these contractors to check their compliance levels. Feel free to call me if you need further assistance in this regard.

I hope I gave you a clear idea of the process.

Regards,

Ramanjaneya Reddy G.K,
[Phone Number Removed For Privacy Reasons].