CLRA Compliance Confusion: Can 2000 Workers Be Inducted Without Form V on a Construction Site?

Dear All,

I need clarification on CLRA compliance for a Construction Site. My contractor has mentioned, "As per the labor license, up to 2000 workers can be inducted without Form V." The contractor already has a license for a 2000-workforce.

Please let me know if this is correct.

Regards,
Dinesh

Dear Mr. Dinesh,

Your statement that "As per labour licence up to 2000 workers can be inducted without Form V" is not in conformity with the CLRA Act. Labour License is issued under which Act? Is it the Shops & Commercial Establishments Act?

After the issue of Form V by the Principal Employer, the Contractor has to apply for a license under the CLRA Act. Please do not mix up with various Acts. Kindly go through the relevant acts in detail and revert with your query.

Dear Dinesh, it appears to me that your post lacks the necessary particulars. When you say that the contractor already has a license for 2000 workers, does it mean that he has obtained the license based on the Form V you had issued for a different item of work related to the same construction site? Or does it mean he holds an unexpired license acquired for a different contract work elsewhere? In any case, his statement may be founded on the incorrect assumption that a contract labor license remains valid until its expiry date. The license issued under Section 12 of the CLRA Act to the contractor is specific to the work assigned.

As far as I understand, under the CLRA Act, the employer must register first by providing details of the contractor(s) they are going to engage, as well as the number of contractor employees required to be engaged in the project by each contractor. Subsequently, Form V is issued by the employer with the desired details as per the said form.

Either your company has already issued that form, or the contractor has obtained a license for another employer which has not been utilized. This is ineffective for your purpose. Your information is incomplete.

Warm Regards,
Bharat Gera
HR Consultant

There are two options: 1. S&CE Act or 2. BOCA Act. However, Form V pertaining to that particular project has to be obtained. The contractor may obtain a license for 2000 workers in general. Specific approval for the site is required as the locations differ.

V. Murali

Dear Sirs,

I have one more clarification: Does CLRA state that no employment contract is required for workers? I could not find anywhere that mentions the absence of an employment contract. Conversely, contractors and PMC indicate that it is not required.

I kindly request your guidance on this matter, specifically with the relevant clause.

Regards,
Dinesh