We are working on a customer site as their contractors in Jharkhand. We have our CLRA license from the customer.
Meanwhile, we have engaged workmen on the rolls of our 3rd-party vendor at the customer premise to subcontract some specialized skill jobs. To obtain a CLRA license, this 3rd-party vendor requires Form 5 from the Principal employer. My question is: are we the Principal employer or our customer, to issue Form 5 to enable them to obtain the CLRA license?
Regards,
Sania
From India, Mumbai
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2Meanwhile, we have engaged workmen on the rolls of our 3rd-party vendor at the customer premise to subcontract some specialized skill jobs. To obtain a CLRA license, this 3rd-party vendor requires Form 5 from the Principal employer. My question is: are we the Principal employer or our customer, to issue Form 5 to enable them to obtain the CLRA license?
Regards,
Sania
From India, Mumbai
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This arrangement is very common in India - Contractor and Sub-contractor. For labor license, Principal Employer (PE) can only issue the Form-V, not the contractor under PE.
Now the question is, why would the PE issue Form-V to the subcontractor? It all depends on the PE's intention. In Jharkhand, a very big and renowned Steel Plant is issuing Form-V to Sub-Contractors after checking the basic credibility of the subcontractor along with the Vendor's code.
In Maharashtra, I have noticed in the past that there was an agreement where the Contractor would do the main job, but the manpower supply would be from the Subcontractor. Based on the merit of the agreement, the PE issued Form-V to both Contractor and Subcontractor.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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Now the question is, why would the PE issue Form-V to the subcontractor? It all depends on the PE's intention. In Jharkhand, a very big and renowned Steel Plant is issuing Form-V to Sub-Contractors after checking the basic credibility of the subcontractor along with the Vendor's code.
In Maharashtra, I have noticed in the past that there was an agreement where the Contractor would do the main job, but the manpower supply would be from the Subcontractor. Based on the merit of the agreement, the PE issued Form-V to both Contractor and Subcontractor.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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Most companies will not provide the documentation to the contractor to allow his subcontractors to work. The contractor is not the PE, so he cannot issue the form either.
A properly managed company will ask the contractor to put the employees into his own register and ensure compliance from his end. His personal agreement with the subcontractor is of no importance to the PE.
From India, Mumbai
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A properly managed company will ask the contractor to put the employees into his own register and ensure compliance from his end. His personal agreement with the subcontractor is of no importance to the PE.
From India, Mumbai
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Dear SricityHR,
At no point in time, the same person could be both a Principal Employer and a Contractor to the same establishment for which work is performed through contract labor. A contractor engaging subcontractors during the course of execution of the work for obvious reasons of economy, specialty, urgency, and the like are practical possibilities. But such a contingency would not alter the status of the main contractor or subcontractors, and as such, they are bound by all the provisions of the CLRA Act, 1970 pertaining to contractors.
From India, Salem
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At no point in time, the same person could be both a Principal Employer and a Contractor to the same establishment for which work is performed through contract labor. A contractor engaging subcontractors during the course of execution of the work for obvious reasons of economy, specialty, urgency, and the like are practical possibilities. But such a contingency would not alter the status of the main contractor or subcontractors, and as such, they are bound by all the provisions of the CLRA Act, 1970 pertaining to contractors.
From India, Salem
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Dear Member,
I would like to add:
It is important to check how many personnel you have taken the license for. If, as a prime contractor, you have taken the license for extra personnel (actual + projected) and the subcontractor does not require to deploy 20 or more persons in Jharkhand, then your license is sufficient. However, you need to include the data of the subcontractor's employees in the Half-Yearly Labour Return.
If the subcontractor is required to deploy 20 or more employees, then they can apply separately. The Form V will be issued by the Principal Employer (PE) only. They will mention, "M/s XXXXX has been engaged as a subcontractor to M/s XXXXXX (Contractor) in my establishment for XXXXXXX work."
In most of our sites, we generally take a license for the whole manpower (Technical, Garden, Security, Housekeeping + extra projected) and include their data in the Half-Yearly Labour Return. Our subcontractors have never taken the CLRA License.
From India, Delhi
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I would like to add:
It is important to check how many personnel you have taken the license for. If, as a prime contractor, you have taken the license for extra personnel (actual + projected) and the subcontractor does not require to deploy 20 or more persons in Jharkhand, then your license is sufficient. However, you need to include the data of the subcontractor's employees in the Half-Yearly Labour Return.
If the subcontractor is required to deploy 20 or more employees, then they can apply separately. The Form V will be issued by the Principal Employer (PE) only. They will mention, "M/s XXXXX has been engaged as a subcontractor to M/s XXXXXX (Contractor) in my establishment for XXXXXXX work."
In most of our sites, we generally take a license for the whole manpower (Technical, Garden, Security, Housekeeping + extra projected) and include their data in the Half-Yearly Labour Return. Our subcontractors have never taken the CLRA License.
From India, Delhi
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