Do We Need a Labor License for Our Outsourced Occupational Health Center Staff?

We have outsourced 10 staff for the occupational health center, including a doctor, nurse, pharmacist, sweeper, driver, and helper. Is it mandatory to obtain a labor license since there is a supply of manpower exceeding 9?

The Contract Labour (R&A) will apply only if the strength of contractual staff exceeds 20. Since the Act itself is not applicable, there is no necessity to take a license until the contractual strength reaches 20.

Actually, the applicability of the contract labor act (minimum number) varies from state to state. Since the original post does not provide the details, it is not possible to definitively state that they are not covered under the act.

Sir,

The issue pertains to Gujarat state, where the minimum requirement for a labor license is 10. I am inquiring whether the hospital contract or the nature of work involving medical or para-medical staff that is outsourced is exempt from obtaining a license.

Thank you.

Understanding the Normative Nature of the CL Act

All of you, please understand that the CL Act is normative legislation. This means that while a state can't make the eligibility of the Act for more than 20 contract workers, a state can make this Act applicable for establishments engaging fewer than 20 contract workers. For establishments under the state rules in Andhra Pradesh, the Act is applicable for 10 or more contract workers.

Almost all labor laws are normative; the benefits or facilities you extend should not be less favorable than those stipulated in the respective Acts.

Regards,
Shrikant

By the way, you can't outsource all employees; you need to have at least one employee of the principal employer.

Please review the corrected text:

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Definition of Contract Labour

Please have a look at the definition of contract labour given in the act. It refers to any person who is working on your premises because you have a contract with their actual employer to deliver certain services other than the sale of a product.

So, there is nothing in the rules that says labour is manual work or anything to do with the factory. Every person who is on a contract, irrespective of the work they're doing, including highly skilled engineering people, is covered.

So, you need to register, and the contractor needs to get a license.