Navigating Labor Licenses: Do We Need Permits for Both Source and Destination States?

Dear Seniors, I have a question regarding labor licenses. If, as a company, we get laborers from states like M.P., Jharkhand, or Rajasthan and supply them to different states like Kochi, Orissa, and Mangalore, do we need to obtain a labor license from the state where we are getting the laborers? What about the states where we are supplying the laborers—do we also need licenses for those states?

The laborers will be skilled, unskilled, or semi-skilled males and females for civil and mechanical work. The estimated labor supply will be 200.

Kindly guide me on this matter.

Regards,

Since you are supplying your laborers to Kerala, you must obtain a labor license in Kerala as well. This is necessary because your employees are working in Kerala, provided that there are more than 20 laborers working.

Dear Trusha16, you are engaging workmen from one state to another. Workmen engaged from one state to another are called Inter-State Migrant Workmen. There is an enactment called The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act 1979 to regulate the employment of such workmen. You are requested to read this enactment and follow the provisions. You may also view earlier postings on this subject by me and other learned members to get clarity on the matter. I have restricted myself to respond to your query with a clear intention so that other members can contribute to this.

Thank you.

Dear Trusha,

Our senior and respected member, Sh. Keshav Korgaonkar, has rightly mentioned that the workmen engaged from one state to another are called Inter-State Migrant Workmen. Their employment is regulated under the provisions of the Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979, and the state rules made thereunder. Though it is a somewhat complicated act and may be difficult to grasp for laymen, the gist of the act is as follows:

1. The act applies to every establishment where five or more interstate migrant workmen are employed and to every contractor who employs five or more interstate migrant workers.

2. An interstate migrant worker means any person who is recruited by or through a contractor in one state under an agreement or arrangement for employment in an establishment in another state, whether with or without the knowledge of the principal employer.

3. The principal employer will register his establishment, and the contractor shall obtain a license as done under the Contract Labour (Regulation and Abolition) Act, 1970.

4. The contractor shall ensure regular payment, equal pay for equal work irrespective of sex, suitable conditions of work, medical facilities, protective clothing, etc., for such workmen.

5. The contractor shall maintain a register of migrant employees, report accidents, submit half-yearly returns (Form 23), and annual returns (Form 24).

Regards,
BS Kalsi

Member since Aug 2011