Do We Need a Shop License for Each Location if We're Already Registered Under the Contract Act?

Hi, I'm an HR manager in a manpower service provider company. My query is, if we are registered under the Contract Act and have obtained licenses in various locations in India, is it necessary to acquire a shop license for each location? Our offices are present in all these locations, and all HR, payroll, recruitment, PF, and ESI work is carried out by our head office.

Regards,
Bhupendra

If you have offices in other locations, yes, your contract manpower should be included in PE manpower for calculating Shops Act fees as they work on the PE premises.

If you have offices in various locations/states, you fall under the purview of the respective State Shops & Commercial Establishments Act, which requires registration. This is in addition to registration or licensing under The Contract Labour (R&A) Act. The Contract Labour (R&A) Act is a central legislation, while the Shops & Commercial Establishments Act is state legislation. If you do not have offices in various locations/states, registration under the Shops & Commercial Establishments Act is not required.

Sainath Sai Ram,

If a contractor does not have an office in a state, how do they administer the contract? The attendance, leave, and wages records should be available at the state location since contract labor is working at the site in that state.

Dear Mr. Shrikant Pra,

Attendance and salary abstract can be prepared at the Contractor's Head Office, not necessarily in the location. No issues. However, all relevant records, as applicable to the respective Principal Employer, should be produced to the authority concerned by the Contractor.

Thank you.