Navigating Labour License Renewal: How to Handle State and Central Authority Conflicts?

Dear Seniors,

A company obtained a contract from Central PSU for work to be completed and handed over to the state Electricity Board through PSU. The Labour license is obtained on the Form-V of the State Electricity Board.

Current Situation

1. The state Electricity Board is not registered with the Labour Department.
2. PSU is registered with the Central Labour Commissioner.

Hence, the ALC - state rejected the renewal.

Advice Needed

1. How can this license be renewed?
2. Which is the monitoring/governing authority?
3. Is there a need to take a fresh license from the Central Labour Commissioner?
- If yes, what would be the impact on the contract assigned (commercial implications by the PSU for not abiding by the contract provisions)?

Please suggest.

Regards,
Srinivas

Applying for Contract Labor Permission

The principal employer must apply to the labor commissioner to hire contract labor for their firm. Therefore, they have to nominate themselves to the concerned labor commissioner's office. Once they receive the permission letter, they will be eligible to provide Form V to any contractor willing to work on their premises.

To get in touch with the labor commissioner's office, speak with any clerk at the licensing office. He or she will provide guidance on the matter.

Regards,

Dear Mr. Srinivas,

As per the CLRA, only the Principal Employer is authorized to issue Form V to a contractor/sub-contractor. However, before issuing Form V, the Principal Employer should get registered under the CLRA and obtain a Certificate of Registration for the Establishment. The Principal Employer is not supposed to issue Form V without obtaining valid registration under the CLRA. If the same is being issued, then such Form V has no existence in law.

You can take Form V from PSU and apply for a fresh license with Central Authorities. In such a situation, it will be a case of the wrong authority instead of no license. For the wrong authority, the issuer of Form V shall be held responsible, not you, because as per contractual obligations, you should follow the instructions of your client.

Subsequently, you can also take up the matter suitably with state authorities regarding how they had issued a license when Form V was not valid. If issued, they now have no right to refuse renewal of the same.

Regards,

Dear Sir,

(Mr. Kapil & Mr. Harshil)

Firstly, let me thank you for the time taken for my issue and the valuable advice given. The homework is done, and obtaining the license from the central Labour authorities or renewing it from the state labor authorities can be managed. This can be achieved either by getting the state Elec board to register itself or obtaining a fresh Form V from the PSU, which is almost resolved.

Jurisdictional Challenges

Considering the legality and the operational difficulties arising in the jurisdiction of both authorities, namely:

1. Few employees approach the state labor commissioner, and a few approach the Central Labor tribunal for the redressal of grievances.
2. The monitoring and inspection by both authorities, exercising the administrative rights – can an employer deny or oppose the validity of the jurisdiction of the particular authority from whom the license is not obtained?

Please advise.

Regards,
Srinivas

Dear Mr. Srinivas,

The site will be governed by the authorities who have issued the license, so I don't think there will be any dispute with respect to jurisdiction. It may be a case of the wrong authority but not of no license. Authorities can't blame you for taking a license from the state as you have approached state authorities, as Form V has been issued by the State Electricity board. It is the duty of the Principal Employer to issue the proper Form V for the purpose of obtaining a license, and legally the Principal Employer is responsible for this, not you as a contractor.

Regards,
srinivas