Is Yearly Renewal of Contractor Registration Necessary When Nothing Changes?

We have engaged contract labor in our company. Accordingly, we had obtained Registration of Contractors (RC) from the appropriate authority. Is it necessary to renew/amend the RC on a yearly basis, even though there is no change in contractor, nature of work, and strength?

There is no need to amend the Contract Licence unless and until there is any change in the number of employees and other parameters. Renewal of the licence, of course, is necessary before the expiry of the existing licence, which is issued for a fixed period by paying the required fees fixed by the state government. Are you talking about J&K state? I have no ready answer for J&K.

Dear Colleague,

Yes, normally the Registration Certificate has to be renewed every year, but you should check the State Rules in this regard.

Regards,
Vinayak Nagarkar
HR Consultant

Amending the Registration Certificate under the Contract Labour (R&A) Act

There is no provision for the renewal of the Registration Certificate under the Contract Labour (R&A) Act, 1970, or the Contract Labour (R&A) Central Rules, 1971. The Registration Certificate needs to be amended whenever there is a change in the contractor, the number of workers employed by the contractor, or even a change in the designation of the Principal Employer. If there is an increase in the number of workers in the RC, an additional fee must be paid. If the maximum registration fee has already been paid, there is no need to pay an additional fee. It is advisable to amend the RC at least once a year if there are no frequent changes in the contractors or the number of contract labours.

Dear Sandip,

Strictly speaking, in response to your query, the answer is 'NO'. This is because there has been no change in the contractor, nature of work, or workforce.

If there are any additions or deletions in contractors, nature of work, workforce, etc., you need to inform the Licensing Authority and make the necessary amendments along with the relevant fees.

Regards,
Suresh

Dear friends,

Please find attached various forms/formats under CLRA Rules (Central) which are self-explanatory. Registration of Establishment (CoR) and License are in two different formats. If any state government rules prescribe different forms/procedures, they also need to be noted.

Forms (contd.)

13. Grant of licenses: Every application for the grant of a license under subsection (1) of Section 12 shall be made in the prescribed form and shall contain the particulars regarding the location of the establishment, the nature of the process, operation, or work for which contract labor is to be employed, and such other particulars as may be prescribed.

The licensing officer may conduct an investigation concerning the application received under subsection (1). In making any such investigation, the licensing officer shall follow the prescribed procedure.

A license granted under this chapter shall be valid for the specified period and may be renewed periodically upon payment of fees and fulfillment of prescribed conditions.

Revocation, suspension, and amendment of licenses

14. If the licensing officer is satisfied, either on a reference made to him in this regard or otherwise, that:

(a) a license granted under Section 12 has been obtained by misrepresentation or suppression of any material fact, or

(b) the holder of a license has, without reasonable cause, failed to comply with the conditions under which the license was granted or has contravened any provisions of this Act or the rules made therein, then, without prejudice to any other penalty the license holder may incur under this Act, the licensing officer may, after providing the license holder with an opportunity to show cause, revoke or suspend the license or forfeit the deposited sum, if any, or any portion thereof, as security for the due performance of the granted conditions.

Subject to any rules that may be established in this regard, the licensing officer may vary or amend a license granted under Section 12.

It is also recommended to refer to the state rules applicable to the workplace for necessary guidance.