Navigating CLRA Act Registration: Can We Register as Contractors While Under the Factories Act?

Hi Group, I require help on the below topic.

Company Registration and Labor License Requirements

Our company is registered under the Factory Act in Gujarat, employing 70 employees. Now, we have received an order from a US company, but the work needs to be performed in one of the refineries in Gujarat only, and we need to supply 24 employees to that site.

Now, the refinery HR says the refinery sector comes under the central government; hence, we need to provide a labor license as the number of persons is more than 20.

Questions Regarding CLRA Act Registration

Now, my questions are:

(1) If we are already registered under the Factories Act, can we also register as contractors under the CLRA Act?

(2) If yes, how can we apply for the CLRA license as we have received the order from a US company?

(3) What is the process to apply for the Contract Labor License in this case?

If anyone can guide me on the above scenario, it would be really helpful.

Regards, Shailesh Jani

The position is clarified below:

1. License Application under the CLRA Act of 1970
You need to apply for a license as per the CLRA Act of 1970 since you are supplying labor to the refinery. Being registered as a factory is not relevant.

2. Issuance of Form VA by Gujarat
The Form VA is to be issued by Gujarat as the work is happening there. I presume that the American company has engaged you with the knowledge and permission of the refinery.

3. Consultation for Guidance
You may consult the Gujarat Rules of the CLRA Act or contact the State Labor Department for guidance.

I believe the Gujarat Government increased the limit for contract labor licenses from 20 to 50 in 2019 or 2020. Even the notification for fees states 50-100.

https://col.gujarat.gov.in/images/lc...tion-12-01.pdf

I suggest you check with the local office of the labor commissioner and confirm.

However, being a refinery, the appropriate government is the central government, so the Gujarat amendment may not apply to them. In that case, you need to get a license.

As KK explained above, the fact that you have a factory license has no relation to work done by contract workers in a client's factory.

Yes, a factory license and a contractor license are different. Possession of a factory license does not exempt you from obtaining a contractor license if you are supplying laborers. You can obtain all the necessary information from the Labor Department in your area regarding license fees and the procedure for applying for a license.