Confused About Contract Labour Act Registration? Let's Clarify Who Needs to Register!

It has been noticed that there is utter confusion about the registration of an 'establishment' under the Contract Labour Act. Most people think that the Principal Employer has to get himself registered. Others think that the Company (client) has to get itself registered as an establishment. I feel that it is the establishment where the contract labour is employed or is to be employed that is required to be registered as an 'establishment,' and the responsibility to get it registered lies with the 'Principal Employer' of a company who desires to get the work done through a contractor.

For example, ABC is a company that wants to hire a contractor to build a 'Mall' at a place Y. The person X is the Managing Director (Principal Employer) of the company ABC. In this situation, X has to make an application to the Registering Officer to get the establishment, i.e., the 'Mall,' registered under the CLRA.

What is the opinion of the members of this forum?

Regards,
jpratap

Yes, you are right. The Principal Employer has to obtain a registration certificate, and the contractor has to take a "License" under the CLRA.

Yes, the establishment which employs contract labor needs to be registered, and the Principal Employer of the said establishment shall apply for registration, as is evident from the language of Sec. 7 of the CLRA Act.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Yes, it is the Principal Employer who has to get the Registration Certificate and who has to issue Form V for the Contractor. The Contractor has to get the license by enclosing other documents with Form V.

Regards,
Mary

Yes, it's the Principal Employer himself who has to take the Registration Certificate first to deploy Contract Labour (under subsection (1) of section 7 and shall be made in triplicate, in Form-1 along with the demand draft showing payment of fees for registration) in his establishment. Then, contractors have to apply for the Contract Labour License to the concerned authority in Form IV along with Form V (issued by the Principal Employer) and other supporting documents.

Regards,
Harchand Singh
Kolkata