Is Renewing a Registration Certificate Mandatory for Principal Employers with Contractors?

Dear all,

My query is: Upon registering as the principal employer and engaging contractors on one's premises, is it mandatory for the principal employer to renew their registration certificate? If yes, may I know the duration of the renewal process? Or is the registration a one-time procedure to be followed by the principal employer.

An establishment or factory has to register itself under the Act within 15 days of the Act becoming applicable to it as per Sec. 2A read with Reg. 10B. Once the Act becomes applicable, it continues to be applicable to it notwithstanding the fall in the minimum number of employees. So, I do not envisage any direction given by the ESI Act to renew the registration once done. Other views are welcome.

B. Saikumar

Registration Certificate under the CLRA Act does not need to be renewed. However, when there is a change in the particulars such as a Change of Contractor or the number of contract workmen to be employed, the Registration Certificate must be amended with the payment of an amendment fee.

N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402
Email: natraj@sakthimanagement.com

Sai Kumar, I think he is talking about registration under the Contract Labour Act. In some states, there is a validity date. In such cases, it needs to be renewed as long as contract labour is used.

In other cases, there is, of course, no need as the registration is valid until revoked or surrendered.

Yes, Saswata, you are right; he is talking about registration under CLRA only, and I endorse your reply in this regard. The mistake happened as I switched over to this thread after replying to an ESI query.

B. Saikumar
HR & Labour Law Advisor
Navi Mumbai

Thank you very much for your clarifications. Just to ensure that my understanding is correct, once the registration certificate is obtained by a principal employer under CLRA, it does not need to be renewed unless mandated by the state government. I noticed an expiry date on the contractor's license document, and I deduce from the CLRA that the principal employer must issue Form V to the contractor each time the license nears expiry to extend the engagement of the employees at the principal employer's work site. On the other hand, the principal employer's registration certificate, which does not display an expiry or validity date, does not require renewal.

Could you please confirm or correct me?

Regards,
Vian

Contractor's License Renewal

A contractor's license must be renewed every year. However, there is no provision for the renewal of the Principal Employer's Registration Certificate; therefore, the RC does not need to be renewed.

Form V Requirement

Form V must be given to the contractor only when they apply for the license for the first time, not every year when they are required to renew the license. There is no provision in the TNCLRA Rules for enclosing Form V by the contractor every time they apply for the renewal of the license.

Regards, N. Nataraajhan

Once registration under CLRA for the Principal Employer has been completed and the registration number has been granted, no further renewal for the Principal Employer is required.