Navigating the Contract Labour Act: How Do We Register a New Manpower Agency?

We are registering under the Contract Act, 1970, with an agency that is providing manpower. Now, my question is, we would like to add one more agency. What is the procedure for registration? Please advise.

Best regards,
Parimal

It's the same as registering a new contractor. You just need to meet the ALC (Assistant Labour Commissioner) and inform them that you are already registered for this, and you wish to add it to your existing registration.

However, nowadays, many labor offices are using computerized RCs, so they issue a separate RC for each contract.

You need to submit the amendment/renewal of the Registration Certificate under the Contract Labour (R&A) Act, 1970, in the prescribed Form No. 1 within 30 days of such change to the concerned Assistant Commissioner of Labour, enclosing the original Registration Certificate.

Regards,
Janardan

Both the employer and the contractor have to submit registration papers to the Labor Department by following the procedure. In the employer registration (license) form, they will add the present contractor. The contractor will get a license from the Labor Department.

In case you are already registered under the Contract Labour (R&A) Act, 1970, as a principal employer and want the addition of another agency, you may apply in Form 1 mentioning the details of both the agencies. Write a request letter for the proposed amendment and also submit your original permission to the concerned authority. They will charge a registration/amendment fee as prescribed in the rules of your State and will issue fresh registration. Accordingly, your contractor/agency will arrange its own registration by depositing the registration fee, security deposit, and providing Form V.

However, under Section 10, the State Governments are empowered to abolish the employment of contract manpower in certain core areas, which you may confirm with your local authorities.

Regards,
P K Sharma

Clarification on Contractor Registration and Amendments

Greetings! I agree with the statements regarding including an additional contractor. I seek additional clarification on the same point. A Principal Employer (PE) is in the process of constructing petrol/HSD outlets, which is given to a contractor. The PE obtains an amendment in his Labour License, and based on this, the Contractor also obtains a License. However, this license is obtained only for a specific period of 3 to 6 months [quoting a specific address of the work site]. After the completion of this site, the PE will award another contract for constructing another outlet at a different place. I believe that the contractor or the PE can apply for an amendment only for a decrease or increase in manpower, but a change of location will not be allowed more than once in a year. Is this true?

Regards,
Selvaraj Ponnuswamy

There is no such condition that the change of location/particulars of the Registration Certificate issued under the CLRA Act/Rules shall not be allowed more than once in a year.

Furthermore, I would like to clarify that the CL(R&A) Act or Rules do not prescribe any renewal or validity of the Registration Certificate issued under the Act. The Registration Certificate shall be valid until the last contractor subsists. It only provides for an amendment in the Registration Certificate.

For any change in the Registration Certificate, an amendment provision is there as per Rule 18 of the CLRA Rules. The holder of the certificate needs to communicate changes, if any, to the registering authority within 15 days of such changes. There is no prescribed format for changes.

As a question raised by the original author of the thread, they already have a valid Registration Certificate. If going to hire another contractor or extend an existing contract, only a simple intimation along with Form 6B and proof of fee paid, if any variation by the principal employer, is needed. Upon receiving such information, the authorities make changes and amend their own register kept in their office for this purpose. The employer needs to have an acknowledgment of the intimation and Form 6B, which should be attached to the original Registration Certificate. No other formality is required.

When engaging new contractors, etc., or extending, there is no need to fill a fresh Form I. The present RC shall be valid; just the formalities mentioned above need to be carried out.

Apart from this, just need to check if Registration is obtained for 100 employees, so you have paid Registration fees for 100 employees. In case after the engagement of new/extension, the number of employees increases, the difference in registration fee needs to be paid, and a copy of the challan/DD also needs to be attached with the letter of intimation of change along with Form 6B.

Regards,
Sanjay