Who Should Get the Labor License for Village Workers: R or V? Seeking Advice on Responsibilities

I am working with R. R has significant civil contracts. For these projects, labor is being supplied by V from a village called P. Nowadays, the State Administration is objecting to the movement of labor from village P. The State Administration is stating that a valid labor license must be held by the person arranging the movement.

My question is, who is responsible for obtaining the labor license? R claims that they need labor but since it's being supplied by V, V should obtain the license. However, V argues that they are supplying labor for R's work, so R should be the one to acquire the license.

Can I please receive some advice on this matter?

Hi,

If it's a contractual labor agreement, the contractor needs to approach FORM V to the principal employer. You can submit the Form V to the local administration and get the labor license from the administration.

Hi Satya!

As per the Contract Labour Act, the principal employer has to register the firm itself for deploying contract labour. He has to name the contractors and the number of contract labourers he intends to deploy. This is called 'registration as principal employer'. For this, he has to apply in the prescribed form with the Labour Department (Labour Officer/Asst. Labour Commissioner, whoever is the competent authority) of the region. The details required are about the nature of work for which labourers are to be deployed, the duration of work proposed, etc.

Once the principal employer is registered, the contractor (those named by the principal employer) has to apply for a license with the licensing authority. He has to pay a security deposit per labourer to be employed by him. The amount of deposit varies from region to region.

The registration and license are to be renewed annually, and returns are to be submitted from time to time. Along with this, various welfare measures are to be arranged by the contractor and ensured by the principal employer. The ultimate responsibility is with the principal employer in all terms.

Hope this helps you.

- Hiten

Dear,

Please see the CLRA and also the recent circular of ESI. It will clear all your doubts. In the post of Kalyan, he has provided the circular. You will also have to see the Inter-State Migrants Act.

With Regards,

V. Sounder Rajan

Hello, can anyone suggest if interstate migration and labor license are the same? One of my contractors has an interstate migration license. Can he also apply for a labor license in the state?

Hi, As a retired Labour Inspector, I am of the humble opinion that the question pertains to the Inter-State Migrant Workers' (Regulation of Employment and Conditions of Services) Act, 1979.

The basic idea of the Act The basic idea of the Act is to prevent the exploitation of migrant workers at the site deployed by mandating the obtaining of a recruitment license of the thikedar at the home state Labour Department. Hence, as per the above analogy, V has to obtain a recruitment license from the jurisdictional Labour Office of village P.

1. R is the Principal Employer - will have to obtain a Registration Certificate in his home state.
2. V is the Contractor - will have to obtain a Recruitment License in the migrant worker's home state and a License of Employment in the state of deployment, i.e., the location of R.
3. V will maintain statutory registers and file returns.
4. R will maintain a register of all contractors under him like V.

Hope some clarity is there.

Regards, Lamshwa Founder - L.I. Associates [Phone Number Removed For Privacy-Reasons]