Navigating Labor License Rules: Who Gets Form V in a Multi-Company Setup?

Scenario of Contractual Work Execution

Company S is a state-owned government company (principal employer) (e.g., MAHAGENCO), Company P is a central government-owned Maharatna PSU company (main contractor) (e.g., BHEL). Company E is a purely private firm (subcontractor of P) (e.g., ECO Power).

For the execution of work in the plant premises of S, work orders are given by S to P. Now, to execute the work, P has appointed E as their subcontractor (through prior permission of S) to carry out the work. Company P deploys its permanent employees (engineers and managers) to supervise the work. Company E supplies manpower (foreman, fitter, welder, grinder men, helpers, etc. - more than 20 in number) to execute the work under the supervision of Company P in the plant premises of Company S.

Questions on Regulatory Compliance

In this scenario, which company's name would be entered by S in their RC - P or E? Would Form V for labor license be given by S to P or E? What rules and clauses are applicable in such a case?

As there is a contractual obligation between S and P, S will add P as a contractor and issue Form V to P.

There are provisions where S can issue Form V to E as a subcontractor to P, but not many companies will issue.

State and Central Government Roles in Contracting

The question of whether the State Government or Central Government is involved is not the primary concern. Either can act as the Principal Employer (PE) or Contractor in each case.

In your situation, the State Government is legally obligated to issue Form V to BHEL as stated in the initial Work Order. Subsequently, the Principal Employer may or may not issue Form V to the subcontractor (E) upon the contractor's request. However, the main contractor remains responsible for all violations of the Work Order and all statutory obligations under labor law.