Do I Need a Labour Licence for Guarding Services Across Multiple States? Seeking Guidance

Dear Seniors,

Recently, I have made a contract with an MNC Bank to provide guarding services for all their ATMs in South India (Tamil Nadu, Karnataka, Kerala, and Andhra Pradesh). I am required to deploy three guards at each ATM, meaning one guard per 8-hour shift, totaling 175 guards, including relievers.

Even though the deployment is across different states and sites, a single Guarding bill has to be submitted to the Bank.

Kindly inform me whether I should obtain a Labour Licence or not. If so, please provide me with detailed information.

Thank you,
John

For security guard contracts, labor is not applicable if they are registered under the security guard board.

Dear Sir,

You are correct; in Maharashtra, we have the Security Guard Board. My question pertains to other states, such as Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala. Could you please provide information on this with references?

Thank you,
JOHN

Dear John,

Even if you are in the state of Maharashtra and governed by the Security Guards Board, you require a Contract Labour License for organizations governed by the Government of India, such as banks and telecom companies. Therefore, for a bank, you require it even in Maharashtra.

Regards,
Sanjiv Shrivastav
shrivastava.sanjiv@gmail.com

Dear Member,
If your query relates to Contract Labour (R&A) Act, 1970 then go through the following:-
It applies— Sec 1 (4)(b) to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen:
Provided that the appropriate Government may, after giving not less than two months' notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or contractor employing such number of workmen less than twenty as may be specified in the notification.

Section 1(5)a: It shall not apply to establishment in work only of intermittent or casual nature is performed.


Regards,
R.N.Khola

Dear Member,
If your query relates to Contract Labour (R&A) Act, 1970 then go through the following:-
It applies—
Sec 1 (4)(b) to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen:
Provided that the appropriate Government may, after giving not less than two months' notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or contractor employing such number of workmen less than twenty as may be specified in the notification.

Section 1(5)a: It shall not apply to establishment in work only of intermittent or casual nature is performed.


Regards,
R.N.Khola

Applicability of Contract Labour Act

The Contract Labour (Regulation and Abolition) Act applies to every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labor. It also applies to every contractor who employs or employed 20 or more workmen on any day of the preceding 12 months.

I want to clarify something in this matter. The matter is in two parts. The first part is the employer, and the second part is the contractor (your firm). So when you (your firm) are engaging manpower of more than 20 with only one employer (MNC Bank), then you have to take the labor license. Before you take it, it is mandatory for the employer (Bank) to get registered under the law because without registration by an employer, no employer can engage any contractor labor. Therefore, it is mandatory for the principal employer to get registered under the law.

The second thing is it doesn't mean that you are employing your guards in different locations. All the employees who will work in different locations are paid from your payroll, and they will be counted as employees of one employer (Bank). So, it is mandatory for both to get registered under the law.