Is It Legal for Clients to Demand a CLRA License with Less Than 20 Employees at One Site?

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

Is the client's demand legally correct?

Thanks.

Contract Labour Act and License Requirement

The Contract Labour Act and the requirement for a license apply when the number of contract workers from a single contractor exceeds the number specified in the act, which may be modified by states.

Since the applicability of the act is specific to each premise, the requirement will not apply in your case unless the places have been artificially separated to avoid licenses.

Note: The oil and gas industry falls under the central sphere. You can approach the Labour Commissioner - Central in your state for advice.