Understanding the Applicability of the CLRA Act on Job Workers and the Correct Method for Calculating Employee Numbers

Hello Community,

I have recently begun to delve into various acts pertaining to HR and Contractors, but I find myself in need of clarification regarding a few points.

Firstly, if I assign my manufacturing or service work to an organization (as a Job worker) to complete on a piece rate basis, and the workers from that organization work within my premises, do I need to include them in my CLRA Registration Certificate? This question arises even if the workforce is less than the threshold of 20/50.

Secondly, suppose I have a contractor who is obligated to deploy a minimum of 150 man-days of work, regardless of whether an employee takes a day off or goes on leave. In such cases, a replacement is provided, resulting in a minimum of 175 employees provided to me over a certain period (calculated as 150*7/6). I am unsure as to what number the contractor should display in his CLRA license for employment of the workforce at my premises. Should it be 150 or 175?

I appreciate your time and look forward to your insightful responses.

Thanks & Regards,
PJ

Dear PJ,

I understand your queries and I'll try to clarify them to the best of my knowledge.

Firstly, with regard to your question about including workers from a job worker organization in your CLRA Registration Certificate, the Contract Labour (Regulation and Abolition) Act, 1970 mandates that every principal employer employing 20 or more workmen as contract labour in an establishment, in any day during the preceding 12 months has to obtain a registration certificate. The key point here is the term 'contract labour'. If the workers from the job worker organization are working on your premises but are not under your direct supervision or control, they may not be considered as 'contract labour'. However, if they are working under your control and supervision, they may fall under the definition of 'contract labour' and you may need to include them in your CLRA Registration.

Secondly, concerning the number to display in the CLRA license, the number should reflect the maximum number of workmen to be employed as contract labour in the establishment on any day during the year. In your case, if the maximum number of employees provided to you over a certain period is 175 (including replacements for leaves and offs), then the contractor should display 175 in his CLRA license.

I would recommend consulting with a legal professional or expert in labour laws to get a more accurate understanding of these matters as these are legal interpretations and can vary based on the specific situation and jurisdiction. It's always best to ensure compliance with all relevant laws and regulations to avoid any potential legal issues.

I hope this helps!

Best regards,
[Your Name]

Dear PJ,
1. It\'s crucial to note that you cannot legally assign the central and regular tasks of manufacturing or service work to a contractor.
2. The CLRA Act stipulates the cessation of contract labour engagement in an organization where manpower is required 365 days a year and in shifts that span 24 hours.
3. The Act also regulates the service conditions of workers who are engaged through contractors.
4. The remuneration of a worker should not fall below the specified minimum wages per shift as stated and should be higher if calculated on a piece-rate basis.
5. All the laborers are working through the contractors within your premises should not be more than the registration numbers.
6. The contractors need not required license under CLR&A, when the total workforce is less than the threshold of 20 or 50, as the case may be.
7. The engagement of multiple contractors to avoid the threshold limit is bad and illegal. All the contractors worker shall be treated the workmen of principal employer.
8. A workman worked for a day only and left, the replacement worker count as number two. Thus the names borne in workmen register in a calendar year or in a year as the rules may be,.
9. Suppose your daily reqirement is 40 but due to leave and workerd left job, and replacement workmen cont is 10.Then the total manpower engagement is 50 but not forty. Thus equal to threshhold limit makes the contractors liable for obtaining licence.

Dear Sir,

I appreciate your detailed explanation about the rules and conditions that a company needs to follow under the CLRA Act. However, I\'m still unclear on a couple of points. Specifically, I\'m unsure whether a worker deployed by a job-worker at my premises for job work should be considered as Contractual Manpower under the CLRA Registration.

Furthermore, you mentioned in your last point (9) that if 10 workers are brought in to replace any absentees or to cover weekly offs, separate from the regular 40 workers, they should be reported independently in the Contract Labour License. Therefore, to ensure that I have 150 workers on-site at all times, should I be employing 175 workers through the contractor to allow for weekly offs? If this is the case, should my contractor be quoting 175 as the number of workers in the Labour License?

I ask this because the License and law states, \'The number of workmen employed as Contract Labour in the establishment ABC Limited shall not, on any day, exceed 150.\' This suggests that it\'s referring to the number of workers working, rather than the total workforce engaged.

I would appreciate it if you could provide some clarity on these two queries.

Kind regards.

Firstly, regarding your question about including workers from the other organization in your CLRA Registration Certificate, the general rule is that if these workers are working within your premises and are under your supervision and control, they should be included in your count for the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA) registration, regardless of the workforce number. This is because the Act requires every establishment to which it applies to be registered, and every contractor to get a license. The Act applies to every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour. However, please consult with a labour law expert or legal professional for a more accurate understanding applicable to your situation.

Secondly, as for the number to be displayed in the CLRA license, the Act does not specifically provide for a situation where the contractor is required to ensure a certain number of man-days, irrespective of leave or off-days. However, as per the general understanding, the number should reflect the maximum number of contract labour that could be employed on any single day. Therefore, if you are employing 175 workers over a month to ensure 150 workers are present every day, the license should indicate 175. However, you must ensure that this does not violate any conditions of the license, which usually specifies the maximum number of workers to be employed on any day.

For more information, you can refer to the http://clc.gov.in/clc/acts-rules/clra-act where the Contract Labour (Regulation and Abolition) Act, 1970 is available.

Please note that while I have tried to provide a detailed answer based on my understanding of the subject, it is advisable to consult with a legal professional or labour law expert for advice tailored to your specific situation.

Dear Recipient,
However, more than 50 employees licence or CLRA licence is required, for 20 or 50 no need to for licence or permission.
Apart from this for offs or absentees this is between principal employer and contractor's mutual consent how they comensate the deficiencies of employees numbers.

Rgds

Dear Prateek,
The law is quite clear.
1.Two entities are involved, one is principal employer and Contractors.
2. The PE's establishment with two jobs i.e, Perennial/Core, incidental and Non-core activities.
3. The directly employ man power for the core and perennial nature of work.
4.The PE's establishment engage manpower through contractors for the work of incidental and Non-core activities
5. The PE's establishment get themselves Registered/registration for engagement of certan number of manpower through contractors.
6. The PE's establishment issued form V to the contractors for obtaining labour license to engage manpower in PE's establishment
7. All the contractors can engage upto registration quantity in anyday or A contractor can engage the Licence quantity in any day.
8. The threshold limit is limited, whether a contractor liable for a licence or not.
9. But the workmen engaged through licence contractor or non licence contractor should not be more than the registration numbers of manpower.
10. Therefore, you can't engage contractor manpower more than the limit in any single day operation.
11.Let us assume your limit is 200,so you can not engage 201 people in any day. The paysheet for a single day count either 200 or less but not above.
12.You can enhance the quantity by making fresh applications for amendment.

Hello PJ,

Your question pertains to the applicability of the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act), and how it affects the count of employees in a specific circumstance. I'll attempt to clarify your concerns, based on my understanding of the CLRA Act.

Firstly, if you're assigning work to an organization on a piece rate basis, and the workers from that organization work within your premises, they will generally be counted in your CLRA Registration Certificate. The CLRA Act applies to every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour. However, this is subject to the state rules and notifications, which may vary.

For your second question, the number to be displayed in the CLRA license should be the maximum number of workmen to be employed on any day. In other words, if there's a possibility that you might have 175 employees on any given day, then that's the number you should display. However, it's best to consult with a labor law expert or a legal adviser to ensure you're complying with all the relevant laws and rules.

Regarding the issue of minimum man-days, as per my understanding, the law does not differentiate between regular employees and their replacements in terms of counting the number of workmen. The key factor is the number of workmen employed on any given day. If a replacement is provided for a worker who takes a day off, then the replacement is counted as an employee for that day.

Please note that these interpretations are based on my understanding of the CLRA Act and may not be entirely accurate. It's always best to seek legal advice for any concerns regarding labor laws.

I hope this helps!

Best,
[Your Name]