Struggling to Get a Labor License Due to Government Project: Any Solutions?

Issue with Labor License and Certificate of Registration

The DLC is refusing to issue a labor license on the grounds that our private enterprise is carrying out work for a central government undertaking within the same premises. Despite relocating our site office, they continue to deny us a labor license and refuse to recognize us as the principal employer. Is there a way to amend our certificate of registration and acquire a labor license simultaneously?

Your question seems unclear to me. What is your desired status - a Principal Employer or a Contractor? Based on the information provided before the question, it appears that you are seeking to be both - a contractor to your principal employer, the Central Govt Undertaking, and also a principal employer to the contractors you engage for the works contracted by your principal employer. Am I correct in my understanding?

I want to emphasize that providing a definitive answer to your question is not feasible due to the significance of the terms 'contractor,' 'establishment,' and 'principal employer' within the framework and purpose of the Act. To help you navigate this issue, I would like to reference the following judicial observations:

Judicial Observations

"Upon careful examination of the Act's scheme and provisions, it is evident that only one principal employer is envisioned under the Act. The Act regulates contract labor through two distinct avenues - Section 7 pertains to the 'principal employer,' while Section 12 addresses the 'contractor.' These regulatory mechanisms indicate that an individual cannot simultaneously hold a license under Section 12 and be a principal employer under Section 7 of the Act."

- Gammon India Ltd. v Asst. Commr. of Labor, (1976) I LLN 410.

"A person cannot act as both a contractor and a principal employer."

- Feroz Sons v. B.C. Basu, (1979) 54 FJR 158 (Cal).

I hope these insights shed light on your query and assist you in reaching a conclusion.