We have a Computer Software & Hardware Trade License. We are a partnership firm. We are executing data entry jobs on an annual rate contract basis. We have 20 data entry operators engaging in our different establishments. We are working in a CPUC where only 12 data entry operators are engaged.
Now the question is, the PSU wants us to get a labor license. Is it mandatory to take a labor license for this sort of job as per the Contract Labor Act? Please provide proper guidance.
From India, Kolkata
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1Now the question is, the PSU wants us to get a labor license. Is it mandatory to take a labor license for this sort of job as per the Contract Labor Act? Please provide proper guidance.
From India, Kolkata
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1. Principle employer has to register your establishment under CLRA Act.
2. You need to apply for a contract labour license once a principal employer has obtained a contract registration certificate for your firm. In your case, only 11 data entry operators are working in PSU. If the principal employer registers your establishment under the CLRA Act, you do not need to apply for a labor license because you have engaged/supplied only 11 data entry operators (less than 20 workmen - Condition one will apply).
Condition 1: The CLRA Act applies only to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.
Condition 2: If any notification in the official gazette applies provisions of the CLRA Act to any establishment or contractor employing such a number of workmen less than 20 as may be specified in the notification.
Regards,
D. Pannerselvam
09842219133
From India, coimbatore
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2. You need to apply for a contract labour license once a principal employer has obtained a contract registration certificate for your firm. In your case, only 11 data entry operators are working in PSU. If the principal employer registers your establishment under the CLRA Act, you do not need to apply for a labor license because you have engaged/supplied only 11 data entry operators (less than 20 workmen - Condition one will apply).
Condition 1: The CLRA Act applies only to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.
Condition 2: If any notification in the official gazette applies provisions of the CLRA Act to any establishment or contractor employing such a number of workmen less than 20 as may be specified in the notification.
Regards,
D. Pannerselvam
09842219133
From India, coimbatore
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Dear Indrajeet,
Your question is a little bit confusing. When your client is asked for a labor license, why are you asking for a Contract Labor License? You need to obtain a labor license under the Shop & Establishment Act. That is sufficient for your needs.
Regards,
Praveen
From India, Bengaluru
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Your question is a little bit confusing. When your client is asked for a labor license, why are you asking for a Contract Labor License? You need to obtain a labor license under the Shop & Establishment Act. That is sufficient for your needs.
Regards,
Praveen
From India, Bengaluru
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Dear Sir/Madam,
Kindly clarify the following:
We have a Computer Software & Hardware Trade License. We operate as a partnership firm and execute data entry jobs on an annual rate contract basis. Currently, we have a total of 20 employees working across our various establishments, with 12 employees engaged in a Public Sector Undertaking (PSU).
Now, the PSU is requesting us to obtain a labor license. Is it mandatory to acquire a Contract Labor License as per the Contract Labor Act?
Please provide us with proper guidance.
Thank you,
Indrajit Sharma
From India, Kolkata
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Kindly clarify the following:
We have a Computer Software & Hardware Trade License. We operate as a partnership firm and execute data entry jobs on an annual rate contract basis. Currently, we have a total of 20 employees working across our various establishments, with 12 employees engaged in a Public Sector Undertaking (PSU).
Now, the PSU is requesting us to obtain a labor license. Is it mandatory to acquire a Contract Labor License as per the Contract Labor Act?
Please provide us with proper guidance.
Thank you,
Indrajit Sharma
From India, Kolkata
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Dear Indrajit,
Please follow Mr. Pannerselvam's instructions without any confusion. The Shop & Establishment Act and the Contract Labour Act are different. Regarding your question, you are required to have a labor license.
From India
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Please follow Mr. Pannerselvam's instructions without any confusion. The Shop & Establishment Act and the Contract Labour Act are different. Regarding your question, you are required to have a labor license.
From India
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As per contract labour act, if you engaged more than 20 employees then only you can appply for the Labour Licence, as per the CLR act no need to make labour license. Manjunatha E HR Generalist
From India, Chennai
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From India, Chennai
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Since you have more than 20 employees, you need to take contract labour license. It’s better you comply.
From India, Mumbai
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From India, Mumbai
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Dear Indrajit,
It is not clear from your query in which state you have these 12 employees. Please note that in some states, a labor license is required even if the number of employees is less than 20. I can give you examples of at least two such states: West Bengal and Andhra Pradesh.
Also, note that a labor license is to be taken location-wise. For example, if you operate in Mumbai at 7 different locations, and if a labor license is applicable in all these locations, you have to obtain a separate labor license for each of these 7 locations within Mumbai. From your query, it is not clear whether these 12 employees are working in the same location of the PSU or if they are scattered. If they are scattered (not sitting in the same location), then you need to check if taking a license is applicable to you or not.
So, please check two things:
1. What is the minimum number of employees required in your state for the applicability of the act?
2. Whether the employees are working in the same location or if they are scattered. If they are scattered, then check whether the CLRA is applicable considering point number 1 above.
Regards,
Kuldeep Singh
From India, Vijayawada
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It is not clear from your query in which state you have these 12 employees. Please note that in some states, a labor license is required even if the number of employees is less than 20. I can give you examples of at least two such states: West Bengal and Andhra Pradesh.
Also, note that a labor license is to be taken location-wise. For example, if you operate in Mumbai at 7 different locations, and if a labor license is applicable in all these locations, you have to obtain a separate labor license for each of these 7 locations within Mumbai. From your query, it is not clear whether these 12 employees are working in the same location of the PSU or if they are scattered. If they are scattered (not sitting in the same location), then you need to check if taking a license is applicable to you or not.
So, please check two things:
1. What is the minimum number of employees required in your state for the applicability of the act?
2. Whether the employees are working in the same location or if they are scattered. If they are scattered, then check whether the CLRA is applicable considering point number 1 above.
Regards,
Kuldeep Singh
From India, Vijayawada
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Labour License under the Contract Labour Act is required for a contractor only if he has employed 20 or more employees in any establishment against a particular work order. To obtain a labour license, the requirements are as follows:
1. The Principal employer must have registration with the Licensing authority under CLR&A Act.
2. A copy of the work order.
3. Form V issued by the principal employer and DD towards security and license fee.
Please ensure proper compliance with the above requirements for obtaining the necessary Labour License.
From India, Delhi
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1. The Principal employer must have registration with the Licensing authority under CLR&A Act.
2. A copy of the work order.
3. Form V issued by the principal employer and DD towards security and license fee.
Please ensure proper compliance with the above requirements for obtaining the necessary Labour License.
From India, Delhi
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Dear Indrajit,
Labour License under the Contract Labour Act is required for a contractor only if he has employed 20 or more employees in any establishment against a particular work order. For obtaining a labor license, it is required.
However, there is one more thing to note: in West Bengal (Labour dept), an internal notification has been issued. The notification clearly states that if a contractor has employed 10 or more employees in any establishment, they must obtain a contract labor license from the authority.
Thanks & Regards,
Abhijit Barua
From India, Kolkata
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Labour License under the Contract Labour Act is required for a contractor only if he has employed 20 or more employees in any establishment against a particular work order. For obtaining a labor license, it is required.
However, there is one more thing to note: in West Bengal (Labour dept), an internal notification has been issued. The notification clearly states that if a contractor has employed 10 or more employees in any establishment, they must obtain a contract labor license from the authority.
Thanks & Regards,
Abhijit Barua
From India, Kolkata
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Dear Mr. Sharma,
I agree with Kantkamal's opinion. In the factory, only Form V is issued against the work order to obtain the LL. This means the LL will be issued against Form V. Without Form V, there is no possibility of issuing the LL to any contractor.
From India, Visakhapatnam
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I agree with Kantkamal's opinion. In the factory, only Form V is issued against the work order to obtain the LL. This means the LL will be issued against Form V. Without Form V, there is no possibility of issuing the LL to any contractor.
From India, Visakhapatnam
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Our establishment has two coal mines controlled by one Principal employer. One of the contractors supplies 15 contract laborers for each of the two mines under separate work orders, thus crossing the limit of 20 persons employed in the same establishment. Should the contractor obtain a license in this case or not?
From India, Pune
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From India, Pune
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Hai hotgautamji, the labour licence is required for more than 20 employed in one work order it may be in the same establishment
From India, Visakhapatnam
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From India, Visakhapatnam
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Dear Saswata Benarjee,
I am not adding "ji" to your name because it is already a part of your name. Thank you for your clarification. I believe the number of workers required for a labor license varies from state to state, as does the issuing authority. In our state, it has been transferred to the central authority. Our licensing authority is now ACL, previously JCL in the state of AP.
I am happy to see you, sir.
Best regards, [Your Name]
From India, Visakhapatnam
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I am not adding "ji" to your name because it is already a part of your name. Thank you for your clarification. I believe the number of workers required for a labor license varies from state to state, as does the issuing authority. In our state, it has been transferred to the central authority. Our licensing authority is now ACL, previously JCL in the state of AP.
I am happy to see you, sir.
Best regards, [Your Name]
From India, Visakhapatnam
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Yes, sorry. I stand corrected. The number of 20 was in the original act. Various states have chosen to lower it. So the user needs to check the state amendments if any. I did not understand what you meant by "transferred to central." I remember reading on citehr about registration under the central zone, but never got clarity on it. As for my name, I would be happy to be addressed without a "ji" even if it was not in my name :)
From India, Mumbai
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From India, Mumbai
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Licence issuing authority is assist commissioner of labour, central previously joint commissioner of labour, state. Happy on seeing your reply sir
From India, Visakhapatnam
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From India, Visakhapatnam
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I meant to ask : When does the contral government issue a license as against the normal practice of a state government. What conditions do we need to fulfill ?
From India, Mumbai
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From India, Mumbai
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Where can i get a list of places which are under central authority ? I would like to know more about that
From India, Mumbai
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From India, Mumbai
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Thanks to everyone, but the answers are not categorical. The contractor has more than 20 laborers on his payroll, but by distributing them to different locations, he is able to evade license requirements and, thus, all the responsibilities of an employer.
From India, Pune
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From India, Pune
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Dear hotgautam,
The act applies to every contractor who has more than 20 workers. The applicability is not restricted to those with 20 at one location. While the license may not be a requirement, the rest of the act and the rules will apply. He does not escape the liabilities of an employer. He has to follow the regulations all through - maintaining relevant records, leave, payment on due dates, deduction of PF, ESIC, etc. The principal employer better be careful and monitor as well since he is responsible for any failure of the contractor, irrespective of whether there is a license requirement.
From India, Mumbai
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The act applies to every contractor who has more than 20 workers. The applicability is not restricted to those with 20 at one location. While the license may not be a requirement, the rest of the act and the rules will apply. He does not escape the liabilities of an employer. He has to follow the regulations all through - maintaining relevant records, leave, payment on due dates, deduction of PF, ESIC, etc. The principal employer better be careful and monitor as well since he is responsible for any failure of the contractor, irrespective of whether there is a license requirement.
From India, Mumbai
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Dear Seniors As per CLRA BIHAR or West Bengal Rules 1971 , is there any provision for more than 09 employeses to get a License under CLRA Act 1970. Please carify. Regards
From India, Kolkata
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From India, Kolkata
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Hi sir,
I have a firm (enterprises) where I am providing labor, but the company is demanding a labor license. My CA says that a labor license is not required in the case of enterprises; only the registration copy of this firm is enough. Can you please provide clarification on this matter?
Thank you.
From India, Delhi
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I have a firm (enterprises) where I am providing labor, but the company is demanding a labor license. My CA says that a labor license is not required in the case of enterprises; only the registration copy of this firm is enough. Can you please provide clarification on this matter?
Thank you.
From India, Delhi
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Hi,
We are a civil construction company currently running a project in Chennai. My query is that our principal employer wants us to get a labor license since the count of labor is above 20. Based on my knowledge, I requested Form 5 and a labor registration certificate, for which they shared Form 2 with us, covering 2000 workmen.
How do we proceed with obtaining the labor license now? Please advise.
From India, Mumbai
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We are a civil construction company currently running a project in Chennai. My query is that our principal employer wants us to get a labor license since the count of labor is above 20. Based on my knowledge, I requested Form 5 and a labor registration certificate, for which they shared Form 2 with us, covering 2000 workmen.
How do we proceed with obtaining the labor license now? Please advise.
From India, Mumbai
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Dear Sir/Madam, I have required the latest application format for applying central labour license. Also required all latest formats of CLRA. Thanks & Regards Asif Nilger #9413803467
From India, Mumbai
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From India, Mumbai
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The Contract Labour Regulation Act (CLR Act) applies if any establishment employs 20 or more workmen. In this case, a contractor is exempt from obtaining a labor license if they employ/employed fewer than 20 workmen. The Payment of Bonus Act also applies in establishments where 20 or more workmen are employed. However, the contractor claims bonus and pays the same to the workmen even if the number of workmen is less than 20. Why?
From India, Mumbai
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From India, Mumbai
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Labour licence are use to many companies valid or no valid ?
From India, Bharuch
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From India, Bharuch
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TELANGANA-Onlin e Renewal Of License Under Contract Labour (Regulation And Abolition) Act, 1970 I.pdf
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