Contract Labor Regulation and Abolition (CLRA) Act Applicability
Prima facie, the CLRA is applicable. I will state briefly as follows:
• CLRA applies if an organization engages, in the aggregate, labor through contractors, in excess of 20 on any day in the past 12 months. The organization is required to REGISTER itself with the Labor Department of your area as the PRINCIPAL EMPLOYER.
• If any single contractor provides to the organization labor in excess of 20, such a contractor is required to obtain a LICENSE from the Labor Department of the area.
• While the procedure and forms are provided in the CLRA itself, it must be remembered that various obligations stipulated under the Act are to be adhered to. Each year, the RC (Registration Certificate) issued by the Labor Department needs to be submitted to the authorities for any changes that may have occurred in the strength of labor through a contractor. The contractor, regardless, is obliged to RENEW the LICENSE from the authorities.
• The registration fee and the license fee are linked to the number of labor engaged through contractors and the strength of contract labor provided by each licensed contractor, respectively.
• Apart from other applicable labor laws, it is necessary that the contractor labor is paid the applicable Statutory Minimum Wage applicable to your industry and the area where the industry is situated.
There are many more aspects concerning the subject, but about that a little later. Basically, you must obtain a copy of the Bare Act and study the same so that you are equipped to deal with authorities effectively and professionally!
If you wish to raise more issues on this or any other labor matter, please feel free to contact me. I will assist as much as I can. Don't be guided by hearsay!
I suppose for the time being this should suffice. Welcome to the profession.
Cheers
Regards,
Samvedan
June 25, 2014