How Does the New Contract Labour Act Amendment Affect Your Business in Maharashtra?

GOM Gazetted Notification on Contract Labour Act Amendment

Please find attached the GOM Gazetted Notification dated 05.01.2017, amending the applicability of the Contract Labour Act. According to this amendment, the Contract Labour Act will now be applicable to every establishment employing 50 or more contract laborers.

Presuming that this notification has not been posted on this site before, I am sharing it here.

To the Site Administrator/Moderators, there is no suitable category for posting Government Notifications/Labour Law amendments, so I have selected the category "Employee Compensation & Benefits."

Thank you.

What does the amendment state? Can you make the explanation simple for everyone to understand? Does this mean that for a particular company X, manpower of 40 in contract is supplied by company Y, so the 40 employees don't get benefits of ESIC and PF?

Dear maglog1,

This amendment states that the contractor does not need to obtain a Labour License to work for any principal employer if the contractor has fewer than 50 employees in the state of Maharashtra.

Thank you.

So can anyone please confirm if an organization has three outsource agencies - X, Y, and Z? The number of contract laborers taken from each agency is as follows: X - 35, Y - 35, Z - 40. In this scenario, does the principal employer need to obtain an RC? This is because no individual contractor has provided more than 50 contract laborers.

Hi Vaibhav,

As per the latest amendment circulated under the Contract Labour Act, the Principal Employer (PE) is liable to obtain the Registration certificate as the number exceeds 50. However, the license is not applicable to any of the above-mentioned XYZ contractors since these individual contractors do not exceed the maximum limit of 50 contract laborers in the last preceding year.

Regards,
Janardan

Dear Member,

PE is not liable to have any RC under CLRA Act, 1970 as the number is less than 50.

R N KHOLA

I have workmen employees on contract at different locations such as Jaipur, Delhi, Bangalore, and Mumbai. My company is registered in Maharashtra. So, what will be the applicability - will it be for 50 workmen or 20? Or should each place with 20 employees be counted for the license as the principal employer?