Hello Seniors,
Please advise me whether I have to furnish a Form V under THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 to the Carrying and Forwarding Agent. Since they are working independently and based on per CBB they handle, we give them the amount.
My query is, do we have to give Form V? If we do, then we will become the principal employer, and if anything goes wrong with the employee, we will be held responsible.
From India, Bengaluru
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1Please advise me whether I have to furnish a Form V under THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 to the Carrying and Forwarding Agent. Since they are working independently and based on per CBB they handle, we give them the amount.
My query is, do we have to give Form V? If we do, then we will become the principal employer, and if anything goes wrong with the employee, we will be held responsible.
From India, Bengaluru
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Contract Labour (Regulation and Abolition) Act, 1970
As per "THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970," all contractors must register and obtain a license from the labor department for outsourced work given by the principal employer if he/she has employed 20 or more laborers. To obtain the license, the employer or the owner must provide Form V to the contractor.
Your statement, "if we do so, then we will become the principal employer and if anything goes wrong with the employee, then we will be held responsible," is well understood. My dear friend, I would like to tell you that, as a principal employer, you are responsible for everything, even when your contractors do not apply and seek permission for a license. Your company cannot escape from the provisions of the law. Section 25 has stated clear instructions for companies for prosecution in case of any offense.
So, the best approach is for your company to first register, apply for its registration, and then ensure your contractors are covered as well. Compliance must be upheld in this current age of technology.
From India, New Delhi
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As per "THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970," all contractors must register and obtain a license from the labor department for outsourced work given by the principal employer if he/she has employed 20 or more laborers. To obtain the license, the employer or the owner must provide Form V to the contractor.
Your statement, "if we do so, then we will become the principal employer and if anything goes wrong with the employee, then we will be held responsible," is well understood. My dear friend, I would like to tell you that, as a principal employer, you are responsible for everything, even when your contractors do not apply and seek permission for a license. Your company cannot escape from the provisions of the law. Section 25 has stated clear instructions for companies for prosecution in case of any offense.
So, the best approach is for your company to first register, apply for its registration, and then ensure your contractors are covered as well. Compliance must be upheld in this current age of technology.
From India, New Delhi
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Issuing Form V to a Carrying and Forwarding Agent
My submission: I believe you have a Principal-to-Principal Contract. If the agent is engaging more than 20/50 workers (refer to state amending rules) at the site, you need to issue Form V. Failing to do so may result in an unnecessary call from the enforcement authority regarding a violation of the provisions of the CLRA, or the workers may file litigation later, claiming the contract is a sham. Not issuing Form V does not exempt you from liability as a Principal employer. You are always liable for...
Regards,
Gajendra Verma
From India
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My submission: I believe you have a Principal-to-Principal Contract. If the agent is engaging more than 20/50 workers (refer to state amending rules) at the site, you need to issue Form V. Failing to do so may result in an unnecessary call from the enforcement authority regarding a violation of the provisions of the CLRA, or the workers may file litigation later, claiming the contract is a sham. Not issuing Form V does not exempt you from liability as a Principal employer. You are always liable for...
Regards,
Gajendra Verma
From India
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Dear Mr. Nishkar Roy,
The Form V need not be generated. It is used to apply for a Labor License under the CL (R&A) Act, 1970, and Central Rules (1971). It is an obligation for the Principal Employer. The PE is required to issue Form V to the contractor(s), if a certain number (as defined under the state govt. rule) of contract manpower is deployed at your site/office. If you are a contractor and come under the Act, then ask your PE to issue Form V and apply for a Labor License.
From India, Delhi
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The Form V need not be generated. It is used to apply for a Labor License under the CL (R&A) Act, 1970, and Central Rules (1971). It is an obligation for the Principal Employer. The PE is required to issue Form V to the contractor(s), if a certain number (as defined under the state govt. rule) of contract manpower is deployed at your site/office. If you are a contractor and come under the Act, then ask your PE to issue Form V and apply for a Labor License.
From India, Delhi
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FORM-I- Contract Labour Act.doc
NOTE ON PRINCIPAL EMPLOYER TO ENGAGE CONTRACT LABOUR.pptx