Engaging sub contractor - Whether the BPO is required to Register the Establishment under CLRA?

A BPO is registered under the Shops & Establishments Act. It has planned to engage a subcontractor in the following months. The question is whether the BPO is required to register the establishment under CLRA.

Dear Prasanna,

To get the answer to your query, you need to share complete details about the number of employees to be engaged...

At present, the establishment is engaging 50 employees, and the proposed number of employees to be engaged under subcontractors is around 400, with each subcontractor hiring 3 sub-contractor. In this case...

Dear Prasanna,

Your establishment will be a principal employer for all the employees engaged under a contractor; therefore, you need to obtain registration under the CLRA Act before engaging contractors.

All contractors must obtain a license under the CLRA Act for engaging 20 or more persons.

Thank you.

New Labour Code stipulates a change in the number of persons.

Once the Code of Occupational Safety comes to an Act, Factories Act, Contract Labour (Regulation & Abolition) Act, Building & Other construction workers Act, Inter-state Migrant workmen’s Act, etc , totalling 13 Acts shall be repealed. At present, if Principal Employer or Contractor, appoints 20 workmen – other than permanent workman, the establishment shall fall within the purview of Contract Labour (R&A) Act. But as per the new Code, the number of workmen, i.e. 20 has been increased to 50. The Principal Employer is responsible for providing canteen, sitting facilities,. Drinking water facilities, first-aid treatment facilities, to the contractor’s workmen, etc are envisaged in the new code. The condition which stipulates issuing service certificate/work experience certificate by Principal Employer to contract employees is also included in the new Code.