Under the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), a labor license is mandatory for contracts employing 20 or more workers, regardless of whether the contractor employs more than 20 workers through multiple contracts in the same establishment.
The Act defines a "contract labourer" as someone employed by or through a contractor to perform work typically done by the establishment's employees. A contractor cannot employ contract labor in any establishment without obtaining a license from the appropriate government.
The application for a license must be submitted in the prescribed form with the required fee. The appropriate government reviews the application and relevant factors before granting or refusing the license.
The license is valid for one year and can be renewed periodically, with a fee payable for renewal.
The Act sets certain conditions for contractors employing contract labour, including maintaining a register of contract labourers, providing them with the same facilities as regular employees, and ensuring they are not subjected to unfair labour practices.
Penalties, such as imprisonment and fines, are specified for contravening the Act's provisions.
In summary, the CLRA requires a labor license for each contract employing 20 or more workers. The contractor must pay a fee and adhere to the Act's conditions.