Navigating Licensing for Contract Work: How to Handle It When Your Employer Is in Another City?

Securing a Contract with a Steel Company

I have secured a contract with a steel company as an individual. It is a TMT rod manufacturing plant where I should have 15-20 unskilled laborers (which I have). Their work will be to bend the rod, load it into trucks/lorries, etc. My problem is I don't know what type of license I should hold and apply for. The laborers will be working under me, and I might be paying them on a weekly/daily/monthly basis. I will be paid directly by the firm providing me this contract, and the laborers I employ will be my responsibility and will not have any connection with that company. I don't want to start any kind of firm on a contract basis or anything. Can anyone suggest to me what all I'll have to do?

License and Cost Concerns

I met a person regarding this, and he asked me for 35k for 0-15 laborers; for 20 laborers, it would be 45k to make the license. He didn't even specify what kind of license it is. I would like your suggestions on:

1. Which license should I apply for?

2. What is the procedure and where is it issued? I am residing in Bangalore, but the company that has given me the contract is in Coimbatore, Tamil Nadu. Do I have to obtain the license in Coimbatore, or will it be valid if I apply for it in Bangalore?

3. What will be the total cost?

If there are any other things you are aware of that I might not know, please share.

Thank you.

License Requirements for Contract Work in Steel Manufacturing

I have got a contract with a steel company as an individual. It is a TMT rod manufacturing plant where I should have 15-20 unskilled laborers (which I have). Their work will be to bend the rod, load it into trucks/lorries, etc. My problem is that I don't know what type of license I should hold and apply for. The laborers will be working directly under me, and I might be paying them on a weekly/daily/monthly basis. I will be paid by the firm directly that is giving me this contract, and the laborers I employ will be my concern and will not have any connections with that company. I don't want to start any kind of firm on a contract basis or anything. Can anyone suggest to me what all I'll have to do?

I met a person regarding this, and he asked me for 35k for 0-15 laborers; for 20 laborers, it would be 45k to make the license. He didn't even specify what kind of license it is called. I would like your suggestions on:

1. Which license should I apply for?

2. What is the procedure and where is it made? I am residing in Bangalore, but the company that has given me the contract is in Coimbatore, Tamil Nadu. Do I have to make the license in Coimbatore, or will it be valid if I make it in Bangalore itself?

3. What will be the total cost?

Any other information that you know of which I might not be aware of would be greatly appreciated.

Regards

Steps to Comply with Legal Requirements for Your Contract

As you have mentioned, you have a contract for some activity in a steel manufacturing unit. However, a steel factory is not a shop; it falls under the provisions of the Factory Act. Therefore, a few necessary things must be done before starting this new work with your manpower.

1) Obtain a Work Order from an authorized person from the factory, either the HR Head or the Commercial Head.

2) The HR department will issue FORM -V in favor of your firm regarding your engagement in the plant.

3) Since your plant is located in Coimbatore, register your firm under the Contract Labour Act with details of the number of persons to be engaged and the prescribed fee as provided under the state rules. For this, you may contact the area inspector or the office of the Assistant Labour Commissioner. They will guide you.

4) After obtaining registration/license, proceed with ESI & PF Registration for your firm and the engaged manpower. The Area Inspector will visit your office to inspect your records, which you need to maintain properly and regularly (Master Register and Attendance Sheet). Since your work involves the engagement of manpower in the factory, the Factory Act will apply to working hours and off times.

5) Minimum Wages will also apply to you because you are working in the factory, and the same rate will apply to a particular class of industry.

6) Registration under Income Tax (PAN) and service tax are also necessary for your firm.

Lastly, establish a good relationship with the local HR; they will assist you in completing all types of formalities.

I believe the above information will address all your queries.

Thank you.

Dear Sanjay,

These days, all such requirements are easy to accomplish. Please check with the nearest Labour Office to verify if you can upload all the aforementioned documents, as suggested by Mr. Raj Dubey, relating to your license. The Labour department will issue the License accordingly. Feel free to contact me after confirming with the Labour Office for further advice or alternative options.

Regards,

RDS Yadav

LABOUR LAW ADVISOR

navtaranghrs@gmail.com

08439811539