Client is asking them to get a license under CLRA even though the number of employees working at a single location is less than 20

Dear seniors, One of my friends is working with a manpower supplier company. They received one work order for manpower in the oil and gas industry. Manpower is scattered on an Indian basis. The client is asking them to get a license under CLRA even though the number of employees working at a single location is less than 20.

Is the demand of the client legally correct?

Thanks.

Contract Labour act and the requirement of license applies where the number of contract workers from a single contractor exceeds the number specified in the act (which is also modified by states).

Since the applicability of the act is specifically for each premises, the requirement will not apply in your case, unless the places have been artificially separated for avoiding licenses

Note, oil and gas industry is in central sphere. You can go and as Labour Commissioner - Central in your state for advice