Labour License applicability - 4 Operating Plants - Each plant has less than 10 Employees

We have 4 operating plants, out of which 2 of them are under one labor office control and the other 2 are under another labor office. Each plant has fewer than 10 employees. Do we need to obtain a labor license?

Dear Rajeshavs,

If each plant has fewer than 10 contractor workers, then neither the Contractor nor the Employer is required to have a License/RC under the CLRA Act, 1970. If you are asking for a labor license under any other specific enactment, please clarify.

R N KHOLA

Dear Rajeshshav,

I agree with Mr. Khosla's view on this. However, for clarification, I would like to know, who is the principal employer for these two different plants? Are they registered separately, having separate factory licenses? If it is one factory/establishment, you may want to ensure your registration as the Principal Employer to be on the safer side. The Liability Limited (LL) to the contractor will be applicable only in case he engages 20/10 workers (as per state rule) individually.

Shailesh Parikh
99 98 97 10 65
Vadodara

You have 4 operating plants, and each plant has fewer than 10 employees. This implies that these units do not fall under the category of a 'factory' as they have fewer than 10 employees. However, they would certainly be covered under Shops and Commercial Establishment regulations.

Why do you need a labor license? Firstly, you need to register your establishment as a principal employer to engage a contractor. The contractor will then obtain a labor license if the total engagement of workmen is 20 or more.