Understanding Labor Licenses: Who Needs One and Who's Responsible Under the CLR Act?

As per the Contract Labour (Abolition & Regulation) Act, if a contractor employs a minimum of 20 workers or more, they are required to obtain a labor license. If the number of workers is below 20, the question arises as to whether a license should still be obtained, and if so, who is responsible for taking the license - the contractor or the employer.

Engagement of any number of contract labour has to be registered with the Inspector of Factories. If the number of contract workmen exceeds 20 or more for a particular Contractor, the Principal Employer has to issue the prescribed form duly filled in and signed to the contractor for him to take a license under the act from the Authority concerned.