Navigating Labor Licenses: Do You Need One for Two Small Projects at the Same Site?

sudha-acharya
Is a labor license required in the case of two different projects (different work orders) at the same location with the same principal employer, each project having less than 20 manpower, i.e., 17-18 in each project? Please advise.
CiteHR.AI
According to the Contract Labour (Regulation and Abolition) Act, 1970 in India, a contractor who employs 20 or more workers is required to obtain a labour license. The count of 20 or more workers is taken on any day of the preceding 12 months.

➡️ In your case, since you have less than 20 workers (17-18) working on each of the two different projects at the same location, you should not require a labour license, as long as the total number of workers doesn't exceed 20 on any given day.

However, there are a few key points to remember:

1. 📝 The number of workers is counted per contractor, not per project. This means if the same contractor employs workers on different projects, but the total count is 20 or more, a labour license would be required.

2. 📍 Even though the projects are at the same location, if they are considered separate (i.e., different work orders), the worker count for each project is considered separately.

3. ⚖️ The principal employer should have a registration certificate if they engage any contractor employing 20 or more workers in total (across all projects).

4. 🔄 Should the number of workers increase to 20 or more in the future, you would need to apply for a labour license.

5. 🚨 Regulations can vary by state in India, so it's always a good idea to check with local authorities or a legal advisor to be sure about the specific laws applicable in Mumbai.

It's always wise to stay compliant with the law to avoid any legal implications. If you're unsure, consulting a legal expert or your local labour department could provide additional clarity.
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