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Dear All,

A is the Principal Employer. A has been awarded contract work. A engages C as a Sub-Contractor. Now the question is, who will be the principal Employer of C.

Please clear the Temporary license.

Regards,
Anshuman

From India, Delhi
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Dear Anshuman,

According to the Contract Labour (R&A) Act, 1970, 'A' is the Principal Employer for both 'B' and 'C'. What is to be clear in case of temporary license?

Regards,
R.N.Khola

From India, Delhi
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Dear Sir,

Thank you for your reply.

Contract Labour (Regulation & Abolition) 1970. What is the meaning of Regulation & Abolition in the light of CLRA? What kind of nature of work can contract labour be engaged in?

Nowadays, companies are hiring outsourced agencies. This is also a kind of contract work. Are graduates/MBAs engaged through outsource agencies covered under contract labour as they work in the executive cadre?

Please clarify.

Regards

From India, Delhi
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Dear Member,

In my opinion if we are allowed to employ contract labour then we are to adhere to the provisions as contained in the CL(R&A) Act, 1970 & the applicable central or state rules whichever is applicable in our case. This is called as regulatory system & where we are not allowed to engaged the contract labour on prohibited employments as notified by the appropriate government then this is called as abolition of contract labour. Section 10 may be read as under:

Sec.10. Prohibition of employment of contract labour.-(1) Notwithstanding anything contained in this Act, the appropriate Government may, after consultation with the Central Board or, as the case may be, a State Board, prohibit, by notification in the Official Gazette, employment of contract labour in any process, operation or other work in any establishment.

This means we are not allowed to engage contract labour on any process, operation or other work in any establishment which has been prohibited by the appropriate Govt. by notification in the official gazette.

Before attempting your last query we should first go through the definition of contract labour & workman as given under this Act of 1970. These may be read as under:

Sec. 2(b) ‘contract Labour' a workman shall be deemed to be employed as "contract labour" in or in connection with the work-of:-an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer;

Sec. 2(i) "workman" means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person-

(A) who is employed mainly in a managerial or administrative capacity; or
(B) who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by' reason of the powers vested in him? functions mainly of a managerial nature; or
(C) who is an out worker, that is to say, a person to whom any articles and materials are given out by or on behalf of' the principal employer to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the .trade or business of the principal employer and the process is to be carried out either in the home of the out-worker or in some other premises, not being premises under the control and management of the principal employer.

Now going through the definition of the workman you can see who are to consider as contract labour & who the persons which are not to be considered as contract labour.

Query attempted as per your request.

Regards,
R.N.Khola



From India, Delhi
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Dear Sir, Can principal employer will issue form no V to subcontractor also. and for contractor labour who will be principal employer. regards Sachin
From India, Mumbai
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Dear Sachin,

As per the definition of the contractor under CL Act, the subcontractor is also included in the definition of the contractor, then the subcontractor is also required to obtain Form V from the principal employer to obtain a license. The principal employer will be the issuing authority of Form V for the contract laborers of the subcontractor.

Regards,
R.N.Khola

Dear Sir,

Can the principal employer issue Form V to the subcontractor as well? And for the contractor labor, who will be the principal employer?

Regards,
Sachin

From India, Delhi
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Dear Sir,

Is it possible to have in-house outsourcing in a factory? For example, can a company (A) outsource a job to a vendor (B) within the factory premises (by providing a separate agreement, work order, and paying based on piece rate)? Would they be covered under the C&L Act? Is this kind of mechanism feasible in factories? I would appreciate the insights of senior professionals on this matter.

Thanks, Sukumar

From India
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