Dear Respected Seniors,
We recently sold an old plant building to an external party through an auction. As per the conditions of the sale order, the buyer is obligated to dismantle the plant's metal structures, cut them into manageable pieces, load them onto trucks, and transport them away from our premises. The buyer has enlisted the services of over 150 labourers to carry out this work. In this context, could the buyer be classified as a 'contractor' as per the definition provided in Section 2(1)(c) of the Contract Labour (Regulation and Abolition) Act, 1970? And is it necessary for him to obtain a licence under this Act?
From India, Calcutta
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2We recently sold an old plant building to an external party through an auction. As per the conditions of the sale order, the buyer is obligated to dismantle the plant's metal structures, cut them into manageable pieces, load them onto trucks, and transport them away from our premises. The buyer has enlisted the services of over 150 labourers to carry out this work. In this context, could the buyer be classified as a 'contractor' as per the definition provided in Section 2(1)(c) of the Contract Labour (Regulation and Abolition) Act, 1970? And is it necessary for him to obtain a licence under this Act?
From India, Calcutta
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Based on the activities described, the buyer in this scenario could potentially be classified as a 'contractor' under the Contract Labour (Regulation and Abolition) Act, 1970. According to Section 2(1)(c) of the Act, a contractor is defined as a person who undertakes to produce a given result for the establishment, through contract labor or who supplies contract labor for any work of the establishment. In this case, the buyer is engaging laborers to perform specific tasks related to the dismantling and removal of the plant's structures, which aligns with the definition of a contractor under the Act.
Regarding the necessity of obtaining a license under the Contract Labour Act, it is crucial to comply with the legal requirements to avoid any potential issues. As per the Act, if the buyer is indeed considered a contractor, they would likely need to obtain a license to engage contract labor for the specified work. Failure to do so could lead to legal implications and penalties. It is advisable for the buyer to review the specific provisions of the Contract Labour Act and seek legal counsel to ensure full compliance with the regulations.
From India, Gurugram
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Regarding the necessity of obtaining a license under the Contract Labour Act, it is crucial to comply with the legal requirements to avoid any potential issues. As per the Act, if the buyer is indeed considered a contractor, they would likely need to obtain a license to engage contract labor for the specified work. Failure to do so could lead to legal implications and penalties. It is advisable for the buyer to review the specific provisions of the Contract Labour Act and seek legal counsel to ensure full compliance with the regulations.
From India, Gurugram
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Since you have surrendered your factory licence and sold the property including building you cannot engage any labourers or contractor. The person who has bought the property has to deploy his personnel and do the work of dismantling the building etc. In this process you have no role and there does not exist any Principal Employer Contractor relationship between you and the person who bought your factory building. Since you have sold the property and thereby factory licence stood cancelled you cann not issue form V declaring that you have engaged a contractor. But at the same time, the contractor being an employer who hires workers to do work of dismantling and transporting the scraps he has to follow the relevant laws like ESI, PF etc. Obviously, if he wishes to do it with a contractor or by engaging contract workers of 20 or more in numbers then he can take registration under CLRA also. In that process you will not become a party since you have already sold the factory building and premises.
From India, Kannur
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From India, Kannur
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Respected Madhu T K Sir,
Thanks for your comments. However, Sir, situation is a little bit different.
The Plant structure is within a non-working open cast mines. We have sold the structure by auction, but the mines is still under our control and have not surrendered the lease to State Govt.
Will this situation make us liable to full fill the obligation as a Principal Employer?
From India, Calcutta
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Thanks for your comments. However, Sir, situation is a little bit different.
The Plant structure is within a non-working open cast mines. We have sold the structure by auction, but the mines is still under our control and have not surrendered the lease to State Govt.
Will this situation make us liable to full fill the obligation as a Principal Employer?
From India, Calcutta
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SELF-CERTIFICAT E PROFORMA UNNDER CONTRACT LABOUR (R&A) ACT, 1970.doc
Contract Labour _Regln & Abolition_ Act 1970.pdf