Contract Labour and Registration Requirements
If the principal employer has hired (all from third-party contractors) the following strength:
1. No. of manpower (office boys) from third-party contractor = 6
2. No. of housekeeping staff from third-party contractor = 5
3. Security personnel from DGR empanelled contractor = 4 (including 1 supervisor and 3 security guards without arms)
4. Under canteen "rate contract," the contractor provided canteen workers (cook, waiter, cleaner) = 5
5. A software company (third party) has provided a computer technician to the principal employer under AMC/FMS services = 2
The total count of the above goes to 22 during the previous year. So, will the principal employer be required to take registration under THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970?
From India, New Delhi
Acknowledge(0)
Amend(0)
1If the principal employer has hired (all from third-party contractors) the following strength:
1. No. of manpower (office boys) from third-party contractor = 6
2. No. of housekeeping staff from third-party contractor = 5
3. Security personnel from DGR empanelled contractor = 4 (including 1 supervisor and 3 security guards without arms)
4. Under canteen "rate contract," the contractor provided canteen workers (cook, waiter, cleaner) = 5
5. A software company (third party) has provided a computer technician to the principal employer under AMC/FMS services = 2
The total count of the above goes to 22 during the previous year. So, will the principal employer be required to take registration under THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970?
From India, New Delhi
Acknowledge(0)Amend(0)
Yes, would you please go through Section 1(4)(a) of the CLRA Act, 1970? Even excluding the two computer technicians probably deputed on a call basis under the AMC, the number of contract labour employed during the preceding 12 months comes to 20.
From India, Salem
Acknowledge(2)
Amend(0)
From India, Salem
Acknowledge(2)Amend(0)
Further, in the case mentioned above, as per the exception to the definition of "workmen" defined in clause (i), which states: 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.
Thus, since we are employing one supervisor in our security personnel, the number of workmen will be 19 (excluding the supervisor and 2 computer technicians).
Can you please advise whether such interpretation is correct on my end and thereby making the entity exempt from taking labor license registration?
Thanks
From India, New Delhi
Acknowledge(0)Amend(0)
Thus, since we are employing one supervisor in our security personnel, the number of workmen will be 19 (excluding the supervisor and 2 computer technicians).
Can you please advise whether such interpretation is correct on my end and thereby making the entity exempt from taking labor license registration?
Thanks
From India, New Delhi
Acknowledge(0)Amend(0)
In relation to the above question, I would like to clarify whether the staff provided by the contractor under "Rate contract" will be counted while checking the applicability of the Act. Since the organization has entered into a contract with a third party to provide canteen services, the contractor has provided 5 workers to manage the canteen services of the organization.
Suppose, in the future, the contractor increases the strength of the staff provided to, say, 6 or 7, to provide a good level of service to the organization (though the rate will still be fixed as per the rate contract, which is generally as per the number of plates consumed). Then, will such workers provided under the rate contract be counted while checking the limit of 20 workmen employed during the year?
Thanks
From India, New Delhi
Acknowledge(0)Amend(0)
Suppose, in the future, the contractor increases the strength of the staff provided to, say, 6 or 7, to provide a good level of service to the organization (though the rate will still be fixed as per the rate contract, which is generally as per the number of plates consumed). Then, will such workers provided under the rate contract be counted while checking the limit of 20 workmen employed during the year?
Thanks
From India, New Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Contract Labour Act.zip
SELF-CERTIFICAT E PROFORMA UNNDER CONTRACT LABOUR (R&A) ACT, 1970.doc