Confused About Labor Laws in Andhra Pradesh? Seeking Clarity on State-Specific Rules

Understanding Labor Laws in India and Andhra Pradesh

Recently, I participated in a bid for the operation and maintenance of a state government organization in Andhra Pradesh with a valid labor registration certificate for this year, as per their requirement. However, my application has been rejected, citing the rule that we do not have a labor license for the last year. Even after explaining to them that it is required for 20 members, they insist that if we exceed 5 members, a labor license is necessary as per the Government rule of Andhra Pradesh.

I would like to understand the labor laws in India and specifically for Andhra Pradesh:

1. Are labor laws the same across India, or do they vary for each state, like Andhra Pradesh?
2. I have been providing 3 contract labor members to a private company for the past 2 years, and they never raised any concerns about these rules.

Could you please clarify if labor laws differ among states and advise on the appropriate course of action?

Regards,
S. Kumara Swamy

Understanding Labour Laws in Andhra Pradesh

Labour laws in Andhra Pradesh are not different, but the rules framed under various Acts may differ in different states. I have not gone into detail about the AP Contract Labour Rules, but I would like to state that employers may reject the applications of those contractors who do not have a labor license. It may be a fact that a contractor is supposed to obtain the license only when they engage 20 or more employees in a particular establishment. Still, if a licensed contractor is available, why should an employer take the risk of engaging a contractor who does not possess a valid license?

Although there are rulings that employees engaged through a contractor who does not possess a valid license or whose license has been canceled will not be absorbed into the permanent rolls of the principal employer, why should an employer take the risk when contractors with proper licenses are available?

Regards,
Madhu.T.K

Yes, a labor license is compulsory because for contract labor, you have to pay cess on employees. Therefore, you are required to have a labor license.

I am also a contractor who provides manpower in the AP/Telangana States. Asking for a valid or non-valid license is not correct as per the Contract Labour Act 1970 because the license will be issued only after awarding the work by the principal employer. The principal employer also issues the following forms to the successful contractor along with:

1. Form No: II
2. Form No: V
3. Joint undertaking

Asking for a valid or non-valid license or a license taken for another organization before tendering is totally misleading and confuses the contractors. Unfortunately, the responsible labor officers also become silent on these matters, which supports corruption.

Thanks & Regards