Understanding the Contract Labour Act: Does the 20-Worker Rule Apply Individually or in Total?

Dear Experts,

I have a query relating to the Contract Labour Act. It states that the act is applicable to any establishments that employ more than 20 contract workers.

My query is whether the number 20 is considered an aggregate or if it applies to each individual contract.

Hi Narayanan,

Establishments should obtain a Registration certificate if they hire more than 19 contract laborers, whether from a single contractor or multiple contractors. If any contractor deploys more than 19 employees, the contractor should obtain a CLRA license.

Feel free to call or revert for any assistance.

If I have three contractors and from all three contractors, I am only getting five employees, the total number of contract employees works out to 15. Therefore, I do not need to get myself registered under CLRA. Is this correct?

Further, are there any lists of exemptions to which this act is not applicable?

---
Thank you for your question about exemptions to the act. It is important to clarify any exceptions that may apply. In response to your query, there are certain specific scenarios where this act may not be applicable. Would you like more detailed information on these exemptions? Let me know if you need further clarification on this matter.

Hi Narayanan,

If you have 15 employees, then CLRA is not applicable.

Is both the conditions need to be satisfied for applicability or any one of the conditions is enough to trigger the act.

Corrected version:

Do both conditions need to be satisfied for applicability, or is it enough for any one of the conditions to trigger the act?