Contractor Labor License Exceeded: How to Handle When Employer Won't Amend RC?

Good morning to all, my query is regarding the CLRA. The contractor's labor license is for 150 workers, but the manpower has increased to 200. However, the principal employer is not willing to amend the RC. What should be done in such a case? Please suggest.

Please first check the language of RC. The numbers mentioned in RC represent the employment of those numbers in one day. So, as per your query, first check whether it's employed in one day or the total number of workers has increased. If it is due to absenteeism, then there is no need to increase manpower in RC.

For example, in the first week, employment of 50 workers, and in the next week, 20 workers left the organization. You provide replacements for these 20 workers. Then the total number of workers on any given day should not exceed 50.

Thank you for the reply, but the issue is that daily manpower has increased from 150 to 200. The labor license is only for 150, and the PE is not ready to amend the RC. In such a situation, as a contractor, what should be done? Should we show 200 manpower in the records? If yes, then what is the legality?

Please suggest.

Regards,
Pradeep

Dear Pradeep,

The registration certificate of a Principal Employer and the license of the Contractor engaged by him must be amended accordingly whenever changes occur, such as every increase in the total number of contract labor in the Contractor's existing work-specific license. Consequently, the number of contract labor in the PE's already issued registration certificate is based solely on the number of contract labor. Accordingly, if the subsequent increase in the number of workmen under any individual contractor does not cause an increase in the number of contract labor mentioned in the R.C., the PE can choose not to amend his R.C. It should not be the concern of the contractor since he cannot employ more workmen than he was licensed to do. Therefore, for the sake of compliance, the contractor has to apply for an amendment of his license due to the increase in the number of contract workmen for the same work.

As a contractor, the current CLRA license is for 150 workers, with a manpower cost of 200 per day. However, the PE has not been amended to reflect this change.

Can I apply for a license amendment?

My question is, can I apply for a license amendment to accommodate 200 workers? Will the Labour office approve this change?

Please advise.

Thanks & Regards

Dear Mr. Pradeep,

Please note my observations:

1. In the first instance, the PE has to revise the RC because there may be more contractors working in the establishment. So, it is mandatory to amend the RC.

2. If the PE is not amending the RC, you can still apply for the Labor License Amendment.

3. Before processing, please get a letter/amended copy of the agreement from the client in which increased manpower should be mentioned. Because the Labor Officer can ask to submit relevant documents. There must be some documentary proof that certifies excess manpower is required/deployed.

4. Moreover, the updated agreement/letter from the client will be very useful for future reference as well. If the PE denies giving any letter/amended agreement, then ask the PE to drop an email to allow the deployment of extra manpower.

5. If the PE even denies dropping an email, then you have to notify the reason and drop an email to the PE stating, "Due to [reason], wef [date], we have to deploy extra manpower. Since our Labor License allows only 150 manpower, we have to amend the Labor License."

I understand that dealing with the PE could be a bit difficult, but with a tricky approach (any of the above-mentioned ways), you can improve communication and then apply for the License Renewal. In most states, the Labor License process is online now, making it easier to complete.

Seniors can suggest more views.

If the principal employer is not ready to get it amended, just write a letter to the Authority under CLRA, i.e., DLC/ALC, with a copy to the principal employer. State that since the principal employer has requisitioned more employees, your license should be amended accordingly, and the fee, if any, should be intimated. Generally, there is no reply from the DLC/ALC, and by writing this letter, you will be in a safe position if any questions are raised in the future.

Regards, S. K. Mittal
[Phone Number Removed For Privacy-Reasons]