The Contract Labour (Regulation and Abolition) Act (CLRA) is indeed applicable when an establishment engages more than 20 workmen. However, there is an exception to this rule. If an establishment hires more than 20 workers for a temporary period, the CLRA Act is still applicable. This is because the definition of a worker under the CLRA Act excludes those of intermittent nature. Therefore, even if the engagement is temporary, as long as the number of workers exceeds 20, the provisions of the CLRA Act would apply. It's essential for establishments to comply with the regulations outlined in the CLRA Act to ensure legal adherence and avoid any penalties or non-compliance issues.