Navigating Third-Party Employment: Do We Need a License Under the Contract Employee Regulation Act?

Dear Friends,

I am working in an ITES company that has operations all across India. They wish to have employees on third-party rolls. Do they need to apply for a license under the Contract Employee Regulation & Abolition Act or under any other related act?

Please reply to my query on an ASAP basis.

Wishing you all a very Happy Weekend.

Thanks & Regards,
Himanshu Sharma

Hi Himanshu,

A license for the deployment of contract labor is only required for helper roles involving loading and unloading in the manufacturing process. I don't think this regulation applies to ITES companies.

Regards,
Nawal

The Contract Labour (R&A) Act applies to every industry, trade, business, manufacture, and occupation. According to the act, the principal employer should register all contractors and their labor, and contractors should obtain a license for employing labor.

JAGAN
09847355055

Yes, you need to apply for a license under the Contract Employee Regulation and Abolition Act. However, there are some companies that have done so and follow the legal route. A clear example is contract labor, as seen in the company 'DELL'.

With regards,
valbooj