How to Handle Labor License Closure and Worker Retention in Gujarat? Seeking Advice!

Closure Procedure for Labor License in Gujarat

I have the following query, please advise on the matter. One of the labor contractors in a particular department of our company, whose contract is ending next month, now wishes not to continue anymore.

1) Can anyone tell me what the closure procedure is for the labor license in Gujarat state for the contractor?

Retaining Workers Under a New Contractor

2) In case another contractor is hired, but we wish to retain the workers under the new contractor, what procedures do we need to follow for the workers who were under the previous contractor? For example, for PF, I have to fill transfer form 13 for all, etc.

Additional Procedures for New Contractor

3) What are the other procedures apart from new contractor license registration and PF code registration?

Your precious suggestions and helpful remarks would be highly appreciated.

Thank you.

Whenever you are seeking guidance, please provide your name and the industry in which you work. This information will help us provide you with the correct and appropriate response to your query.

Closure Procedure for Labor License

The contractor must obtain Form VI-B (Completion of Work) from the Principal Employer. Then, they should prepare Form VI-A (Completion of Work) from the contractor's side. Attach the original license, a photocopy of the Security Deposit Challan, and write a covering letter to the license-issuing authority. This letter should state that the work awarded by the Principal Employer has been completed, and the license has been surrendered. Therefore, request the refund of the security deposit of Rs. _____/- or alternatively, fill out Form V-A to adjust the security deposit for another contract yet to be started in a different location within the jurisdiction of the Licensing Issuing Authority. The form numbers and procedures are applicable under the Contract Labour (R&A) Act, 1970. You can find the formats of the forms in the Contract Labour (R&A) Rules, 1971.

I hope this information is helpful to you. Let me know if you need any further assistance.

Best regards, [Your Name]

Thank you, S. Bhaskar, for your reply. I am working in the FMCG industry. Can you tell me which is the better way for the existing workers under the contractor – whether to withdraw the PF fund or to transfer it to a new contractor? What is the procedure to get registration under PF for a PF code for a new contractor? As it will take some time to get assigned a new PF code, how should I deposit PF contributions?

Thanks

In case we do not have the original license copy and we want to close our labor license, what should we do? Kindly suggest the process.