Navigating Contract Labour Licensing: Total vs. Site-Based Manpower in Bihar – What’s the Right Approach?

Dear Sir/Madam,

We are a manpower sourcing company and have recently secured a work order to provide 60 workmen to a renowned bank in Bihar. Under this work order, we have a total of 30 sites across different districts of Bihar, each site having approximately 5 employees.

Now, my questions are:

1. Do we need to obtain a license under the Contract Labour Act, considering that the manpower at each site is below 20 but the total exceeds 20?
2. Should we acquire a single license for all 60 employees?
3. Or should we obtain multiple licenses on a site-wise or district-wise basis?

Your valuable suggestions on this matter would be greatly appreciated.

Thanks & Regards,
Sudipta

In this scenario, as per the Contract Labour Act, since the total number of employees exceeds 20, a license is required. Considering the distribution of employees across multiple sites, it is advisable to obtain multiple licenses on a site-wise or district-wise basis to ensure compliance with the law. Each license should correspond to the specific number of employees at each site to accurately reflect the workforce distribution and adhere to legal requirements. It is recommended to consult with legal experts or authorities familiar with labor laws in Bihar to ensure proper licensing and compliance with regulations.