Are We Eligible for a License Without Client's RC and Form V for PAN India Projects?

Dear Sir,

We are engaged in communication networking with the Air Force on a PAN India basis. The client has not obtained the RC and has not issued Form V. Our total labor strength across India is approximately 40 workers. Each zone has about 5 or 6 workers. In such a case, are we eligible for a license? Note that the client and contract are singular for their projects across PAN India.

Please confirm whether we are eligible for a license or not.

Regards,
shk

Applicability of the CL (R&A) Act

Principally, the CL (R&A) Act, which requires a Labour License, is applicable to:

“Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour. Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen.”

However, in the case of Maharashtra, the phrase “20 or more workmen” has been substituted with “50 or more workmen” (notification dated 05th Jan 2017).

As your labour is scattered all over India (being less than 20 at each site), in my opinion, you do not need to obtain the license.

Advice on Agreement Preparation

I would further advise that while making the agreement, be specific that the number of manpower should not be mentioned there. Instead, I suggest you make different agreements for different locations (it can be done region/state-wise as well). This will strengthen your case during a labour inspection visit (if any happens in the future).

Hope I have cleared your query.