Labour License - less than 50 employees - contractor & sub-contractor will get exemption?

With regard to labor licenses, I have the following queries:

1) Is a Principal Employer certificate (currently valid until Dec-18) required to be renewed, even if none of the contractors (individually) have 50 or more employees?

2) Is a contractor company required to obtain/renew a labor license if its own employees number only 18, but its subcontractor has around 38 employees? Or will both the contractor and subcontractor be exempt?

Kindly provide your valuable opinions at your earliest convenience.

Hi Aneesh,

Below mentioned is a clarification.

1. Principal Employer - If contract employees exceed 49 in number, the Principal Employer needs to obtain a CLRA registration certificate.

2. If a Contractor or Subcontractor (in an individual capacity) deploys more than 49 contract employees, then they need to obtain a CLRA license. Please note that the contractor and subcontractor should have a proper agreement in place.

Dear Pravin,

If the principal employer employees contractor A with 18 employees and contractor B with 52 employees, will he be required to register both contractor A and contractor B? Or should he register only contractor B?

Is CLRA applicable when a turnkey contract is awarded to a contractor, e.g. civil works with material or electrical works with material.

If the principal employer employs contractor A with 18 employees and contractor B with 52 employees, will he be required to register both contractor A and contractor B, or should he register only contractor B? Irrespective of the total count not being less than 20, the principal employer is bound to have Registration Certificate for engaging all the contractors. Only in the mentioned case, as per Maharashtra Rules, a contractor with manpower less than 50 is exempted from taking a license for work as the count is less than 50.

Is CLRA applicable when a turnkey contract is awarded to a contractor, e.g., civil works with material or electrical works with material? Yes.