Engage Contractor Without Having Principal Employer Registration

I think whole thing got confused now. I also know the formalities. Please answer a straight foward answer. This is a typical example (or even the reality) in one of such cases.
1. Contractor Engaged in some spefified job. He has probably 2-3 workmen employed by him (working with him)
2. You (we) are the Principle employer issuing work order to executive a particular job.
I know very well CLRA formality that Principle Employer has to submit Form I to the authority. And the contractor has to submit Form IV (along with Form V, issued by PE).
Now, what would be the view of the Labour Officer receving these two forms. You talk from the angle of the LO. Whether he should accept the application forms for registraion or reject the forms quoting certain rules (if so provided in the Act. If so on what basis), is what I am interested to discuss.
Can anyone throw light on this?
V. Balaji

Everyone here has given differing opinions.

The original question was :

Can we engage security guards on contract (less than 20) without having registration under Contract Labour Act

The answer differs from state to state as the states have passed amendment to the central act.

Assuming you are in a state that has no modifications passed the rules are as below :

1. Contract Labour act does applies to any establishment that has 20 or more contract employees (establishment is defined mainly as a single factory or office - check the definition to see where you fit).

2. Contract Labour act applies to all contractors that have 20 or more contract employees (across all establishments that he is working for).

So, if you are not employing more than 20 contract workers through all the contractors working for that establishment, then you do not fall under the act and you do not have to get your self registered under the act. You can voluntarily register, nothing in the act stops that. But why will anyone invite trouble ?

If the contractor you are employing has more than 20 contract workers (not only at your establishment, but in all establishments together), then you need to ensure he gets a license for your establishment also.

In some states (eg Andhra Pradesh), the act applies for any one having 10 or more contract workers. So you need to see any amendments in your state.

You also need to check if your state has passed any notification prohibiting the use of contract labour in your state for security guards. Such notification was passed in Bihar, UP and AP among others, but now reversed and contract labour for security is allowed.

Dear k4kk
Is the securtiy your only contractor or do you have other contractors as well. If yes and the total number of contractor's workers exceed 19 on any day then you will have to obtain registration certificate from the authorities. If your total of all the contract labour is less than 20 then you need not obtain a registration certificate.
Regards
Preetam Deshpande

Hi
As Far As Security Services Is Concerned, In Maharashtra,It is governed under Maharashtra Private Security Gaurds (Regulation of Employment and Welfare) Act 1981.Where in it states that CL license is not applicable if the guards are registered under the guardboard.
Thanks.
Bijay

Does that mean security agency is registered ?
Or that the guards are registered ?
Or that they are sourced from the guard board ?
Each of the 3 will have a different implication
No one takes guard board security people, generally get an exemption from the guard board for the agency.

Hi,
First of all exemption is not for agency or principal employer, it is against the guards deployed.Secondly only a n agency which has the PSARA License is valid, and in maharashtra the cases of security are refeerred to Guardboard for verifcation and hence the issue of CL License is becomes void as guard board directs the agency to obtains exemptions and in turn registration of agency and the PE With them after the publication of exemptions notification.
Pls Make a note I am refering to state of maharashtra only and that to in context with Subject of employing private Security Personnel.
Experts pls correct if I am wrong.
Bijay

Hi
Dear can any one tell me about that how many Principal Employers required for Contract Labor Supply License. And required minimum Manpower & Documentation.
Thanx
Sanjay Kumar
09466205318
[Login to view]

Dear Member
As per my knowledge , The Gujarat Rules specify a number of 10 and not 20 for registration of Principal Employer under the provisions of Contract labour Act. The contractor also has to obtain license if the number of employees the contractor is engaging is 10 or more.
As you plan to deploy a contractor having just less than 20 employees you will have to register your self and also ask the contractor to obtain license.
Regards
Preetam Deshpande