Dear Seniors, I want to know if we can engage a contractor (Security less than 20 nos.) without having a principal employer registration from the labor department. If yes, under which rule or section?
Thanks & Regards,
Krishan Kant Sharma
From India, Bharuch
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4Thanks & Regards,
Krishan Kant Sharma
From India, Bharuch
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Engaging Contract Labor: Registration Considerations
For engaging contract labor of less than 20 individuals, you do not need to register under the Contract Labor (R&A) Act. However, the process of obtaining such registration is not overly complicated, and since it is a one-time registration, I recommend that you still pursue contract labor registration even if you plan to have fewer than 20 contract laborers at present. Similarly, it is always advisable to engage contract labor through licensed contractors.
Regards,
Madhu.T.K
From India, Kannur
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For engaging contract labor of less than 20 individuals, you do not need to register under the Contract Labor (R&A) Act. However, the process of obtaining such registration is not overly complicated, and since it is a one-time registration, I recommend that you still pursue contract labor registration even if you plan to have fewer than 20 contract laborers at present. Similarly, it is always advisable to engage contract labor through licensed contractors.
Regards,
Madhu.T.K
From India, Kannur
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This is okay. How about a contractor applying to the Labour Department to register himself with the authority when his workforce is 5 or fewer? Is there anything in the CLRA Act that restricts him from registering under the Act (as his workforce is less than 20)?
Regards,
Balaji
From India, Madras
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Regards,
Balaji
From India, Madras
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Clarification on Contract Labour Registration
The application for registration should only mention "proposed to engage" and not the actual number of contract labourers to be engaged. It is to be interpreted as proposing to engage around 21 contract labourers in the coming period, and it is not necessary to engage this exact number of labourers.
Regards,
Madhu.T.K
From India, Kannur
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The application for registration should only mention "proposed to engage" and not the actual number of contract labourers to be engaged. It is to be interpreted as proposing to engage around 21 contract labourers in the coming period, and it is not necessary to engage this exact number of labourers.
Regards,
Madhu.T.K
From India, Kannur
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I am having a difference of opinion on this matter. According to my understanding, the principal employer has to register the contractor even if the principal employer is engaging only one contract laborer. The contractor does not need to apply for registration if the contract laborers are fewer than twenty.
Please review and confirm.
Regards,
K ANGAPPAN
From India, Bangalore
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Please review and confirm.
Regards,
K ANGAPPAN
From India, Bangalore
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As I know, if a contractor has more than 5 laborers, they need to apply for registration under the Contract Labour Act. Additionally, if an employer wants to engage a contractor in their establishment/factory, the employer also has to apply for registration.
From India, Hyderabad
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From India, Hyderabad
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The Contract Labour Act doesn't provide registration to the Principal Employer (PE) if the contract employees are fewer than 20. If you mention in your application that the Contract Employees (CE) proposed are '20', then you'll be granted a Contract Labour Registration (CLR).
Similarly, the contractor will also not get a Contract Labour License (CLL) if his employees on the PE's site are fewer than '20'. However, when the PE declares the proposed CE as '20', then the contractor will have to apply, and he will get the license.
Regards,
Rizwan
From India, Mumbai
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Similarly, the contractor will also not get a Contract Labour License (CLL) if his employees on the PE's site are fewer than '20'. However, when the PE declares the proposed CE as '20', then the contractor will have to apply, and he will get the license.
Regards,
Rizwan
From India, Mumbai
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Contract Workers and CLRA Act Compliance
In case a principal employer is engaging more than nineteen total contract workers at any one site, irrespective of whether from one contractor or many, the principal employer has to get registration under the CLRA Act.
If any contractor is engaging more than nineteen employees at one site of the principal employer, the contractor has to get a license for the same and will receive the license based on the registration number of the principal employer.
However, every state regulates the CLRA Act differently; for example, in some states, instead of twenty, the number is five. Therefore, it is essential to check the state rules and notifications as well.
Regards,
Anurag Lakhotia
Industrial and labor law consultant.
From India, Delhi
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In case a principal employer is engaging more than nineteen total contract workers at any one site, irrespective of whether from one contractor or many, the principal employer has to get registration under the CLRA Act.
If any contractor is engaging more than nineteen employees at one site of the principal employer, the contractor has to get a license for the same and will receive the license based on the registration number of the principal employer.
However, every state regulates the CLRA Act differently; for example, in some states, instead of twenty, the number is five. Therefore, it is essential to check the state rules and notifications as well.
Regards,
Anurag Lakhotia
Industrial and labor law consultant.
From India, Delhi
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Security services fall under the Private Security Agencies Act 2005. Regarding engaging manpower under contract, if the contract involves more than 20 employees, a license needs to be obtained by the contractor, provided the Principal Employer (PE) issues a copy of the agreement and Form V.
Maharashtra Security Services Regulations
In Maharashtra, security services are governed under the Maharashtra Private Security Guards (Regulation of Employment & Welfare) Act, 1981. Here, a license is not applicable, but registration under the guard board and exemptions under Section 23 of the MPSG (Regulation of Employment & Welfare) Act 1981 are required.
Thanks,
Bijay
From India, Vadodara
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Maharashtra Security Services Regulations
In Maharashtra, security services are governed under the Maharashtra Private Security Guards (Regulation of Employment & Welfare) Act, 1981. Here, a license is not applicable, but registration under the guard board and exemptions under Section 23 of the MPSG (Regulation of Employment & Welfare) Act 1981 are required.
Thanks,
Bijay
From India, Vadodara
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I think there is some confusion in our minds between the terms ‘Registration’ and ‘License’. There need not be any doubt that once you engage a contractor to provide contract labor for your establishment, you become the Principal Employer (PE) and have to mandatorily register with the labor department. In the application, you have to indicate the number of personnel you wish to engage.
The contractor, on the other hand, need not register himself. However, if he provides 20 or more personnel at the site, he needs to apply for a ‘License’. It is done by submitting a Form V obtained from the PE. The application for the contractor's license must be accompanied by a copy of the PE's registration certificate in which the name of the contractor's firm and the number of employees to be engaged are clearly indicated.
Hence, a PE's registration becomes mandatory if he wishes to employ contractual labor through a contractor. The contractor need not register but needs to obtain a license if he deploys 20 or more personnel. This is relevant to separate PEs. To clarify, if one contractor is serving more than one PE, he has to follow the procedure for each PE separately, i.e., one license will not do for all PEs.
I hope that clears your doubt. Good luck.
Regards,
Colonel Gahlot
'TRURECRUIT'
From India, Delhi
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The contractor, on the other hand, need not register himself. However, if he provides 20 or more personnel at the site, he needs to apply for a ‘License’. It is done by submitting a Form V obtained from the PE. The application for the contractor's license must be accompanied by a copy of the PE's registration certificate in which the name of the contractor's firm and the number of employees to be engaged are clearly indicated.
Hence, a PE's registration becomes mandatory if he wishes to employ contractual labor through a contractor. The contractor need not register but needs to obtain a license if he deploys 20 or more personnel. This is relevant to separate PEs. To clarify, if one contractor is serving more than one PE, he has to follow the procedure for each PE separately, i.e., one license will not do for all PEs.
I hope that clears your doubt. Good luck.
Regards,
Colonel Gahlot
'TRURECRUIT'
From India, Delhi
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I think the whole thing has become confused now. I am familiar with the formalities. Please provide a straightforward response. This is a typical example (or even the reality) in such cases.
Contractor Engagement Scenario
A contractor is engaged in a specified job. He probably has 2-3 workmen employed by him (working with him). You (we) are the Principal Employer issuing a work order to execute a particular job. I am well aware of the CLRA formality that the Principal Employer has to submit Form I to the authority. The contractor has to submit Form IV (along with Form V, issued by the Principal Employer).
Labour Officer's Perspective
What would be the view of the Labour Officer receiving these two forms? Please discuss from the Labour Officer's angle. Should he accept the application forms for registration or reject them, citing certain rules (if provided in the Act)? If so, on what basis? I am interested in discussing this.
Can anyone shed light on this?
Regards,
V. Balaji
From India, Madras
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Contractor Engagement Scenario
A contractor is engaged in a specified job. He probably has 2-3 workmen employed by him (working with him). You (we) are the Principal Employer issuing a work order to execute a particular job. I am well aware of the CLRA formality that the Principal Employer has to submit Form I to the authority. The contractor has to submit Form IV (along with Form V, issued by the Principal Employer).
Labour Officer's Perspective
What would be the view of the Labour Officer receiving these two forms? Please discuss from the Labour Officer's angle. Should he accept the application forms for registration or reject them, citing certain rules (if provided in the Act)? If so, on what basis? I am interested in discussing this.
Can anyone shed light on this?
Regards,
V. Balaji
From India, Madras
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Everyone here has given differing opinions.
Original Question
Can we engage security guards on contract (less than 20) without having registration under the Contract Labour Act?
The answer differs from state to state as the states have passed amendments to the central act.
Assuming you are in a state that has no modifications passed, the rules are as below:
1. The Contract Labour Act applies to any establishment that has 20 or more contract employees (establishment is defined mainly as a single factory or office - check the definition to see where you fit).
2. The Contract Labour Act applies to all contractors that have 20 or more contract employees (across all establishments that he is working for).
So, if you are not employing more than 20 contract workers through all the contractors working for that establishment, then you do not fall under the act and you do not have to get yourself registered under the act. You can voluntarily register; nothing in the act stops that. But why will anyone invite trouble?
If the contractor you are employing has more than 20 contract workers (not only at your establishment but in all establishments together), then you need to ensure he gets a license for your establishment also.
In some states (e.g., Andhra Pradesh), the act applies to anyone having 10 or more contract workers. So you need to see any amendments in your state.
You also need to check if your state has passed any notification prohibiting the use of contract labor in your state for security guards. Such notification was passed in Bihar, UP, and AP among others, but now reversed, and contract labor for security is allowed.
From India, Mumbai
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Original Question
Can we engage security guards on contract (less than 20) without having registration under the Contract Labour Act?
The answer differs from state to state as the states have passed amendments to the central act.
Assuming you are in a state that has no modifications passed, the rules are as below:
1. The Contract Labour Act applies to any establishment that has 20 or more contract employees (establishment is defined mainly as a single factory or office - check the definition to see where you fit).
2. The Contract Labour Act applies to all contractors that have 20 or more contract employees (across all establishments that he is working for).
So, if you are not employing more than 20 contract workers through all the contractors working for that establishment, then you do not fall under the act and you do not have to get yourself registered under the act. You can voluntarily register; nothing in the act stops that. But why will anyone invite trouble?
If the contractor you are employing has more than 20 contract workers (not only at your establishment but in all establishments together), then you need to ensure he gets a license for your establishment also.
In some states (e.g., Andhra Pradesh), the act applies to anyone having 10 or more contract workers. So you need to see any amendments in your state.
You also need to check if your state has passed any notification prohibiting the use of contract labor in your state for security guards. Such notification was passed in Bihar, UP, and AP among others, but now reversed, and contract labor for security is allowed.
From India, Mumbai
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Is the security your only contractor, or do you have other contractors as well? If yes, and the total number of contractors' workers exceeds 19 on any day, then you will have to obtain a registration certificate from the authorities. If the total of all the contract labor is less than 20, then you need not obtain a registration certificate.
Regards,
Preetam Deshpande
From India, Mumbai
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Regards,
Preetam Deshpande
From India, Mumbai
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As far as security services are concerned in Maharashtra, they are governed under the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act of 1981. The Act states that a CL license is not applicable if the guards are registered under the guard board.
Thanks,
Bijay
From India, Vadodara
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Thanks,
Bijay
From India, Vadodara
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Clarification on Security Agency Registration
Does that mean the security agency is registered? Or are the guards registered? Or are they sourced from the guard board? Each of these scenarios will have different implications. Normally, no one hires guard board security personnel; they generally receive an exemption from the guard board for the agency.
From India, Mumbai
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Does that mean the security agency is registered? Or are the guards registered? Or are they sourced from the guard board? Each of these scenarios will have different implications. Normally, no one hires guard board security personnel; they generally receive an exemption from the guard board for the agency.
From India, Mumbai
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First of all, exemption is not for the agency or principal employer; it is against the guards deployed. Secondly, only an agency that has the PSARA License is valid. In Maharashtra, the cases of security are referred to Guardboard for verification. Hence, the issue of the CL License becomes void as Guardboard directs the agency to obtain exemptions, and in turn, registration of the agency and the Principal Employer with them after the publication of exemptions notification.
Please make a note that I am referring to the state of Maharashtra only and that too in the context of employing private security personnel. Experts, please correct me if I am wrong.
Regards,
Bijay
From India, Vadodara
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Please make a note that I am referring to the state of Maharashtra only and that too in the context of employing private security personnel. Experts, please correct me if I am wrong.
Regards,
Bijay
From India, Vadodara
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Can anyone tell me how many principal employers are required for a Contract Labor Supply License? Also, what is the minimum required manpower and documentation?
Regards,
Sanjay Kumar
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From India, Delhi
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Regards,
Sanjay Kumar
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]
From India, Delhi
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As per my knowledge, the Gujarat Rules specify a number of 10, and not 20, for the registration of the Principal Employer under the provisions of the Contract Labour Act. The contractor also has to obtain a license if the number of employees the contractor is engaging is 10 or more.
As you plan to deploy a contractor with just fewer than 20 employees, you will have to register yourself and also ask the contractor to obtain a license.
Regards,
Preetam Deshpande
From India, Mumbai
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As you plan to deploy a contractor with just fewer than 20 employees, you will have to register yourself and also ask the contractor to obtain a license.
Regards,
Preetam Deshpande
From India, Mumbai
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