Understanding Employee Coverage Under CLRA 1970 and BOCW 1996: Who's In and Who's Out?

Dear HR Professional, We are planning to apply for the CLRA 1970 License and register our establishment under BOCW 1996. I have some doubts regarding the coverage of employees and non-coverage of employees under these acts. Could you please provide answers to the following queries:

- Who is included (coverage/applicable) as employees/labour/workers under CLRA 1970 and BOCW 1996?
- Who is excluded (non-coverage/non-applicable) as employees/labour/workers under CLRA 1970 and BOCW 1996?

Kindly clarify the above points with examples.

Thanks with Regards, Thirumurugan

Dear HR Professional,

Kindly clarify the following things:
- What is the latest meaning for a workman under the recent amendment of the Contract Labour (Regulation and Abolition) Act, 1970?
- Which persons are not included in the category of workman under the recent amendment of the Contract Labour (Regulation and Abolition) Act, 1970?

Thanks with Regards,
Thirumururgan

You already have the act with you, so you must have read the act and the rules. So what part is actually unclear to you? When is this recent amendment that you are talking of?

Clarification on Registration and Compliance Requirements

Dear all HR Professionals, please clarify the following doubts.

My company has taken a civil contract from X X X X X company for constructing a boundary wall. That company has already issued Form V to our company to obtain a license under the Contract Labour (Regulation and Abolition) Act, 1970. Our company applied for the license through Form IV. Additionally, our company is asking me to register the establishment under the Buildings and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, through FORM-I (See Rule 23(1)) for the same workplace/site/location.

Doubts Regarding Registration and Compliance

1. If we have obtained a license under the Contract Labour (Regulation and Abolition) Act, 1970, for one workplace/site/location, is registration of the establishment under the Buildings and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, required for that same workplace/site/location or not?

2. In that workplace/site/location, the following designated employees are working:
- Deputy Project Manager
- Sr Engineer – Civil
- Jr Engineer-Civil
- Jr Surveyor
- Civil Supervisor
- Machine Operator

These employees are receiving a starting salary ranging from Rs.10,000 to Rs.1,00,000 per month.

As per the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), those employed in a supervisory capacity who draw wages exceeding five hundred rupees per mensem or exercise, either by the nature of the duties attached to the office or by reason of the powers vested in them, functions mainly of a managerial nature, and those employed mainly in a managerial or administrative capacity, are not included in the definition of 'workman.'

Now, how can we maintain statutory compliances and records under the CLRA Act for that workplace/site/location? The total employee strength at that workplace/site/location is approximately above 40 workmen on any day of the preceding twelve months.

Kindly clear the above doubts.

Thanks with Regards,

Thirumurugan

Clarification Needed on Labour Regulation and Registration

My company has taken a civil contract from X X X X X company for constructing a boundary wall. That X X X X X company has already issued Form V to our company to obtain a license under the Contract Labour Regulation and Abolition Act, 1970. Our company applied for the license through Form IV. Additionally, our company is asking me to register the establishment under the Buildings and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, through FORM-I (See Rule 23(1)) Application for Registration of Establishments Employing Building Workers for that same workplace/site/location.

Doubts Regarding Registration and Compliance

1. If we have obtained a license under the Contract Labour Regulation and Abolition Act, 1970, for one workplace/site/location, is registration of the establishment under the Buildings and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, required for that same workplace/site/location or not?

2. At that workplace/site/location, the following designated employees are working:
- Deputy Project Manager
- Sr. Engineer – Civil
- Jr. Engineer – Civil
- Jr. Surveyor
- Civil Supervisor
- Machine Operator

These individuals receive a starting salary ranging from Rs.10,000 to Rs.1,00,000 per month. As per the Contract Labour Regulation and Abolition Act, 1970 (CLRA), those employed in a supervisory capacity who draw wages exceeding five hundred rupees per mensem or exercise, either by the nature of the duties attached to the office or by reason of the powers vested in them, functions mainly of a managerial nature, and those employed mainly in a managerial or administrative capacity, are not included in the definition of "workman."

Maintaining Statutory Compliances

How can we maintain statutory compliances and records under the CLRA Act for that workplace/site/location? The total employee strength at that workplace/site/location is approximately above 40 workmen on any day of the preceding twelve months.

Your immediate reply regarding the above will be highly appreciated.

Thanks with Regards,

Thirumurugan

Applicability of CLRA 1970 in India

The CLRA 1970 is applicable throughout India. When a company decides to engage an agency (contractor) to perform certain jobs, the agency provides all the required manpower needed for various activities. All manpower shall be on the contractor's payroll. If the total number is 20 or more, the entire strength should be considered for obtaining a license under the Act, regardless of their trade, designation, and remuneration. The arrangement for providing a license by ALC or DLC is a departmental issue. Nowadays, you need to apply online for registration and a license, and you will receive both online.

Regards,