Contract Labour And Implications - Pdf Download

Dear Friends,

Please find the attached document on Taking Precautions/Implications Against Contract Labour Regulation and Abolition Act.

Regards,
Rajesh Kantubhukta

Dear Rajesh Kantubhukta,

Thank you for posting a nice and detailed guidelines for the Principal Employers engaging contract laborers. The main problem arises when the officials of the establishment show inclinations towards some of the selected contract laborers, who are attached to them or are considered hardworking and obedient workers. I have come across many cases where the contractor changes, but the same set of workers continues to work for years together. When, one fine day, the management decides to disband the contract labor system, a big labor problem starts waiting for the Principal Employer. There is nobody to come to their rescue and help them. Ultimately, the Principal Employer has to face the whole drama.

BS Kalsi
Member since Aug 2011

Dear Sir,

If a principal employer does not pay the contractor the existing DA and Basic, what should the contractor do, and is the principal employer responsible for the same.

Thank you.

Dear Sir,

What is the procedure for obtaining a Contract Labour License in Tamil Nadu for an employer? How can one register and obtain the certificate from the Labour Department?

Regards,

Nagarethinam M

Dear Nagarethinam,

In reference to your query, it is informed that the principal employer is required to obtain registration under Section 7 of the Contract Labour (R&A) Act in Form No. 1 (in triplicate) from the Registering Officer of the area in which the establishment is located. The said form shall be accompanied by a demand draft showing the payment of prescribed fees for registration, which depends upon the number of contract labour intended to be engaged.

Once an employer has obtained the certificate of registration, all the contractors who have 20 or more persons working for them, it shall be obligatory on their part to apply in Form IV to obtain a license from the Licensing Officer of the area. Accordingly, the principal employer will issue Form V (Form of a certificate by the principal employer) to the contractor(s) for obtaining a license.

The principal employer shall also ensure that the contractor under him renews his license every year.

BS Kalsi,

Member Since August 2011

Sir, with due regard, please guide me on what to do in the position where Company A is contracting Company B to produce coal in an underground mine. Company B has engaged 200 of its own workers, and an additional 19 workers in 10 groups are engaged through petty contractors. What is the effect of the Contract Labour (Regulation and Abolition) Act (CLRA) on Company A as the principal employer?

Dear Anonymous,

With reference to your query, it is imperative on the part of the principal employer to obtain registration under the Contract Labour (R&A) Act from the Registering Officer of the area in which the establishment is located. Since 'A' is giving a contract to person B to produce coal, who is engaging his own 200 workers, and in turn, B has given 10 petty contracts engaging contract labour below 20. Now in this particular case, B is required to take a license from the Licensing Officer of the area for engaging 200 contract labourers. If any petty contractor engages more than 20 workers on any day, then they shall also be required to obtain a license from the Licensing Officer. For better clarity, please refer to the definition of a contractor under the Act, which is given below:

"contractor", in relation to an establishment, is defined as a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labor or who supplies contract labor for any work of the establishment and includes a sub-contractor.

The last sentence of the above definition is very important as it includes 'subcontractor' under its ambit.

BS Kalsi,
Member Since August 2011

Hi sir, My query is: If a contractor (who has employed his 60 labor workers in Establishment A and he has obtained a labor license for that contract) is appointed by Establishment B where 15 labor workers are required, does the contractor need to apply for another labor license for a contract of 15 workers in Establishment B? Please answer.

Dear Mr Adityapatil,
In Establishment B, the contractor is not required any Labour Lcense,
Principally, the Act is applicable:-
“Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour. Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen”.
However, in case of Maharashtra the word “20 or more workmen” has been substituted by “50 or more workmen” (notification dtd. 05th Jan 2017).
But if the Establishment B is engaged many contractors (in the same place for different kind of work) and the total strength is 50 or more than he has to get the RC from the Labour Office and has to mention different contractor’s name in the specified format.
Learned member can put more inputs on the matter.

Dear Aditya Patil,

In reference to your query, supposing that if the same contractor is engaged for Establishment B where 15 labor workers are required, he doesn't need to apply for another Labor License as the contract labor is less than 20. But if on any day, the number touches 20 or more, he will be under obligation to obtain a license from the Licensing Officer of the area.

Hope the position is clear to you.

BS Kalsi,
Member Since August 2011

Dear Sir,

Is HRA to be given to contract supervisors as per the Andhra Pradesh State Contract Labour R&A Act 1971? If yes, what percentage should be given, and should it be calculated on Basic or Basic + DA?

Regards

Dear Sir,

I am working in a sales office in Delhi that controls Northern states (Punjab, Rajasthan, Haryana, etc.). Our Head Office is in Mumbai. As part of the sales team, we have engaged a merchandiser through an outsourcing agency for marketing purposes. The number of employees exceeds 10-20 in each location.

1. Will the Contract Labour R&A apply to us?
2. Should we obtain a labor license as per the Contract Labour Act in each state, or only where the number exceeds 20?
3. There is no supervisor, and they work directly under our sales team member. Is there any issue with this arrangement?

Please help me.

Regards,
Ravi.

Please send contractor labor compliance checklist.

Dear Sir,

The principal employer is not paying the gratuity; he is only giving the contractor a 6% profit. How can the contractor then make payments towards gratuity? Is the contractor responsible for this (gratuity)? If not, how can we resolve this problem?

Please advise.

Regards,
Deepak Kumar