Dear all,
We offer Contract/Temp Staffing in Mumbai and have contract staff on our payrolls working at various customer sites. At each of the customers', the number is less than 20 employees. However, our total employee strength is more than 50. In such a scenario, do we have to register ourselves with the Labour Commissioner?
Some consultants say that since we are into Contract staffing, we have to register ourselves, whereas some say that once the number of employees at one customer site exceeds 20, then the customer has to issue Form 5, and then only we have to register.
I request your learned views and experience on this issue.
Wishing you all a Happy Deepawali & warm regards,
Nilesh Joshi
From India, Mumbai
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We offer Contract/Temp Staffing in Mumbai and have contract staff on our payrolls working at various customer sites. At each of the customers', the number is less than 20 employees. However, our total employee strength is more than 50. In such a scenario, do we have to register ourselves with the Labour Commissioner?
Some consultants say that since we are into Contract staffing, we have to register ourselves, whereas some say that once the number of employees at one customer site exceeds 20, then the customer has to issue Form 5, and then only we have to register.
I request your learned views and experience on this issue.
Wishing you all a Happy Deepawali & warm regards,
Nilesh Joshi
From India, Mumbai
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Dear Nilesh Joshi,
Though you are offering contract staff, that means you are also using a "Name" under which all this work is going on. So, according to labor law, you are also running an organization and providing contract labor, that is the second thing. In this case, you have to register for all the legal compliance like ESI, EPF, registration for providing contract labor, service tax, etc.
But, if you are already registered with EPF-ESI, then the Labor Commissioner knows about you. You need not register separately with the Labor Commissioner.
From India, Delhi
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163Though you are offering contract staff, that means you are also using a "Name" under which all this work is going on. So, according to labor law, you are also running an organization and providing contract labor, that is the second thing. In this case, you have to register for all the legal compliance like ESI, EPF, registration for providing contract labor, service tax, etc.
But, if you are already registered with EPF-ESI, then the Labor Commissioner knows about you. You need not register separately with the Labor Commissioner.
From India, Delhi
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Hello Bcarya, Thanks for your inputs, please note that we are already registered with ESIC, PF & PT. I am still not clear on the Contract Labour registration. Regards: Nilesh
From India, Mumbai
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From India, Mumbai
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Dear Nilesh Joshiji,
Deepavali Greetings to you!!!
You need to see first what the Labour Laws applicable to you are. You are providing staff to various establishments/companies. There is a contract between you and the companies to whom you supply the staff. Your staff are working on the premises of such establishments/companies. In these circumstances, the Contract Labour (Regulation & Abolition) Act, 1970, is applicable to you. Under this Act, you need to obtain a labor license if, on any day, you supply 20 or more staff to such establishments/companies.
Any questions regarding the law cannot be fully addressed on this platform. Please do not misunderstand me. Law is a very vast and complex subject. One needs to hire a practicing consultant/adviser.
Thanks & Regards,
Keshav Korgaonkar
From India, Mumbai
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Deepavali Greetings to you!!!
You need to see first what the Labour Laws applicable to you are. You are providing staff to various establishments/companies. There is a contract between you and the companies to whom you supply the staff. Your staff are working on the premises of such establishments/companies. In these circumstances, the Contract Labour (Regulation & Abolition) Act, 1970, is applicable to you. Under this Act, you need to obtain a labor license if, on any day, you supply 20 or more staff to such establishments/companies.
Any questions regarding the law cannot be fully addressed on this platform. Please do not misunderstand me. Law is a very vast and complex subject. One needs to hire a practicing consultant/adviser.
Thanks & Regards,
Keshav Korgaonkar
From India, Mumbai
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Dear Nilesh,
As a matter of fact, you can register yourself as an establishment for supplying manpower to various agencies/companies. Then you can engage more manpower with various companies. Furthermore, you can register your office premise under the Shops and Establishment Act, so no one can question you for such registration.
Thank you.
From India, Kumbakonam
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As a matter of fact, you can register yourself as an establishment for supplying manpower to various agencies/companies. Then you can engage more manpower with various companies. Furthermore, you can register your office premise under the Shops and Establishment Act, so no one can question you for such registration.
Thank you.
From India, Kumbakonam
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Dear Bhaskar ji,
Deepavali Greetings!!!
You are correct. Mr. Nilesh ji has to register his business/establishment under the Shops and Establishment Act. It is a statutory obligation to register any kind of establishment, whether it is proprietary, a partnership, private limited, public limited, or run by a trust, under the Shops and Establishment Act even if no employee is employed.
The query of Mr. Nilesh ji was on registration with the labor commissioner.
Thanks and regards,
Keshav Korgaonkar
From India, Mumbai
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Deepavali Greetings!!!
You are correct. Mr. Nilesh ji has to register his business/establishment under the Shops and Establishment Act. It is a statutory obligation to register any kind of establishment, whether it is proprietary, a partnership, private limited, public limited, or run by a trust, under the Shops and Establishment Act even if no employee is employed.
The query of Mr. Nilesh ji was on registration with the labor commissioner.
Thanks and regards,
Keshav Korgaonkar
From India, Mumbai
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Dear Bhaskar ji, Certain establishments are given exemptions from registration, which I want to add it over. Any query, we can be discussed. Thanks and regards. Keshav Korgaonkar
From India, Mumbai
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From India, Mumbai
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Dear Mr. Keshav,
Please provide details of establishments that are exempt from registration, as I would like to be informed. I am an ex-serviceman who has recently entered this field, so I am not familiar with these specifics. Kindly share the types of establishments that are exempt from registration and the corresponding act under which they fall.
Thank you, Mr. Keshav.
From India, Kumbakonam
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Please provide details of establishments that are exempt from registration, as I would like to be informed. I am an ex-serviceman who has recently entered this field, so I am not familiar with these specifics. Kindly share the types of establishments that are exempt from registration and the corresponding act under which they fall.
Thank you, Mr. Keshav.
From India, Kumbakonam
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Hi Keshav & Bhaskar,
Please note that we are already registered with ESI, PF, PT as well as Sop & Est (for registering with ESI, Shop & Est regn a prerequisite).
Keshav, thank you for your inputs. Please note that I have mentioned in my post that different consultants have offered divergent views, and that's the key reason for me to seek expert and experienced views on this forum. Let me reiterate that consultants offer views that may not be really or legally correct, and that's when forums like this, where we talk and share, can help immensely as some of us would have already undergone such a predicament earlier. You have mentioned about registering only after reaching 20 employees. One of my consultants says the same, whereas the other has different views.
I once again request learned views and experiences.
Regards,
Nilesh Joshi
From India, Mumbai
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Please note that we are already registered with ESI, PF, PT as well as Sop & Est (for registering with ESI, Shop & Est regn a prerequisite).
Keshav, thank you for your inputs. Please note that I have mentioned in my post that different consultants have offered divergent views, and that's the key reason for me to seek expert and experienced views on this forum. Let me reiterate that consultants offer views that may not be really or legally correct, and that's when forums like this, where we talk and share, can help immensely as some of us would have already undergone such a predicament earlier. You have mentioned about registering only after reaching 20 employees. One of my consultants says the same, whereas the other has different views.
I once again request learned views and experiences.
Regards,
Nilesh Joshi
From India, Mumbai
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If you supply manpower to a contractor or any establishment, and if you supply manpower for fewer than 20 members, then it is the responsibility of the principal employer/client who has to maintain the licensing procedure and other documents on behalf of the contractor.
You have to maintain all the statutory records like workmen register in total and client-wise, attendance register, overtime register, Wages Register, PF Monthly Remittance record, PT Remittance Record, ESI Remittance Record. PF, PT, and ESI Records should match with the records of Workmen Register, Attendance Register, and Wages Register, Bonus Register (Form C of Payment of Bonus Rules), Nomination Form for every workman (Form F as per Payment of Gratuity Rules), and any other relevant documents as required by your clients/principal employer of any concerned premises.
For that one PE's requirement on the concerned premise, you can obtain a license to satisfy the requirement of that employer. We have to satisfy the requirement of PE, then only we can keep a cordial relationship, which will keep our business in the long run.
All the best
From India, Kumbakonam
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You have to maintain all the statutory records like workmen register in total and client-wise, attendance register, overtime register, Wages Register, PF Monthly Remittance record, PT Remittance Record, ESI Remittance Record. PF, PT, and ESI Records should match with the records of Workmen Register, Attendance Register, and Wages Register, Bonus Register (Form C of Payment of Bonus Rules), Nomination Form for every workman (Form F as per Payment of Gratuity Rules), and any other relevant documents as required by your clients/principal employer of any concerned premises.
For that one PE's requirement on the concerned premise, you can obtain a license to satisfy the requirement of that employer. We have to satisfy the requirement of PE, then only we can keep a cordial relationship, which will keep our business in the long run.
All the best
From India, Kumbakonam
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Contract Labor - PPT.ppt
Go on Core Activity-Contra ct labor.pdf