Labor License Dilemma: Should Security Guards Be Counted in the 20-Person Requirement?

Dear All, I am a Site Administrator in a French company working with an Indian company on an Aluminium project. We have two subcontractors - one for civil jobs and the other for security services. Currently, we have 18 security guards on site from the security contractor and 10 laborers from the civil contractor.

Query on Labor License Application

My query is, should we include security guards in the count of 20 persons when applying for the labor license at the site, or should we only count the laborers?

Regards, Saurabh Singh

My friends are missing licenses with registration. If the number of contract workers is more than 20 (including all), then the employer is required to have registration of the contract with the labor department. If an individual contractor has more than 20 workers, then he needs to have a license. In this case, registration by the employer is required, and a license for the contractor is not required.

Labour licence is not required if your civil work is of a temporary nature and the bill for the civil work does not include labour charges.

Thanks and Regards,
Vijay Tapadiya.

[QUOTE=malikjs;1955818]Dear friends, My friends are missing a license with registration. If the number of contract workers is more than 20 (including all), then the employer is required to have registration of the contract with the labor department. If an individual contractor has more than 20 workers, then he needs to have a license. In this case, registration by the employer is required, and a license for the contractor is not required.

Yes, Malik! You are right. Our enlightened members from the HR fraternity must understand the difference between a license and registration. A factory does not need a license; it is the contractor who needs to have it if he employs 10/20 or more contract laborers (the number varies from state to state – for example, in the State of Gujarat, the number for taking a license is 10). If the Contract Labor (R&A) Act applies to a factory, it needs to have a registration and not a license.

Regards,
Rakesh Pd Srivastav

If you give your work to subcontractors, then you also need to obtain a labor license as a principal employer.

Dear Sir,

Please confirm, if a company has more than 100 permanent employees, do they require a labor license when awarded contracts in various states?

Thank you.

My company has permanent employees, and we do projects on a tender basis all over India. Do we need a labor license? We do all compliances like EPF and ESI... Please guide me.

Dear Member,

In general, if you are employing 20 or more workers on each project site, then you are required to have a contract labor license from the Licensing Officer of the area under the Contract Labor (R&A) Act, 1970. If in your case the appropriate Government is the state Government, then the eligibility criteria may differ from state to state.

R N KHOLA

Dear Nazneen, Under the CL (R&A) Act, 1970 and Central Rules, 1971, it does not matter how many permanent employees are in your company. The Act is related to personnel deployed at project sites (either permanent or through various sub-contractors).

As stated by Mr. R.N. Khola, if you deploy 20 or more personnel at a single site, then you have to obtain a labor license and ensure compliance with other related requirements. However, in Maharashtra, the act is applicable for "50" employees.

Our company operates on a tender-based model, working across India, where we deploy a significant workforce through various sub-contractors. We have obtained Labor Licenses for all our units and are ensuring compliance with the Act to the best of our ability.

I hope you will find this clarification meeting the requirements.

Thank you.

Dear Sirs,

My company has around 50 permanent employees working at one site. We undertake projects on a tender basis in Chennai. Do we need a labor license? We ensure compliance with EPF, ESI, LWF... Please guide me.

Thank you.

Dear Sssg,

Greetings!

A license is required only for laborers, not for security guards.

Rgds

Dear Sir,

We are a security agency with 40 security guards who are covered under the factory employer labor license. We have PF, ESI, codes, and pay at our end. Our question is, if our security personnel are covered under the employer labor license, then is there no need to obtain a labor license separately?

Kindly clarify with an example or any relevant government order.

Thank you.

Private security guard businesses fall under the purview of the Private Security Agencies Act 2005. The contract labor license should not be applicable.