Labor License Dilemma: Can We Apply if Manpower Was Deployed Without One?

Dear All,

Query: Can we consider a labor license application if the contractor has deployed manpower without a license for a fresh purchase order?

Thank you.

Hi,

First of all, you need to provide clarity on the number of employees employed under such contractor. If there are up to 50 employees, you do not need to have a labor license for your unit, but you need to inform the authorities about the number of employees in the Registration Certificate. However, if the number of employees exceeds 50, then the contractor should obtain a labor license.

Thank you.

Contract Labour (Regulation and Abolition) Act, 1970

The Contract Labour (Regulation and Abolition) Act, 1970 is applicable to the employer if the total number of employees employed on a contract is 20 or more on any day, and the employer is required to obtain registration. Similarly, every contractor employing 20 or more workers on a contract is required to obtain a license. In U.P., after the amendment dated 29.01.2018, the number of employees has been raised to 50.

You can consider even if the contractor does not obtain a license because it is a technical default on the part of the contractor. I mean to say that as an employer, a contractor's non-obtaining a license will not affect you, but you must have registration for employing contract labour, and the registration must have the names of all contractors even if they are employing less than 20 labour.

I think this clarifies your query. If you have any more queries, you may contact me.

Regards, S. Sensharma
Industrial Law Consultant, Meerut
[Phone Number Removed For Privacy-Reasons]