Dear all,

My factory is registered under the Factory Act. Here, we don't have contract labor. Please guide me on how to register the factory under the government labor department.

My factory is registered under the FA Act. We are paying leaves as per the FA Act. I want to know if it is necessary to pay the leaves as per other acts like the Shop & Establishment Act. Please explain the rules regarding SL, PL, and CL leaves.

With regards,
Ramesh

From United States, San Jose
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Dear LAWANDE RAMESH,

If you want to deploy Contract Labour in your factory, then first of all, you have to register your unit under the Contract Labour Act. Second, you have to understand the difference between the Factory Act and the Shop and Establishment Act. If you are registered under the Factory Act, then obviously, you have to follow the rules that come under the Factory Act and not any other act. Both acts are totally different. You have to only follow the Factory Act.

From India, Dehra Dun
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Dear Indrajeet Singh Sir,

Haridwar, UK

Thank you; I appreciate your immediate reply. You have clarified the second point, but I am still confused about the first point. If we are employing direct labor, what is the intimation procedure to the government labor? Is there any ready format for this?

With regards,
Ramesh Lawande

From United States, San Jose
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Dear Mr. Ramesh lawande, your unit is already register under factory Act. now you have to see how many employee you can hire, this would be very clear in your factory license.
From India, Dehra Dun
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Dear Friend,

If you are appointing employees directly and you were registered under the Factories Act, there is no need to register with the Labour department. However, you have to maintain all the registers prescribed under acts such as the Attendance Register, Wage Register, Leave Register, Bonus Register, etc., and they will be verified by Labour department officials under the Minimum Wages Act and other related Acts.

If you want to engage contract labor, then you should obtain a Principal Employer License. You can engage Contractors, and they must obtain a Contract Labor License. You should comply with the provisions of the said Act.

AVGN Vara Prasad

From India, Kakinada
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Anonymous
1

Dear all,

The Factory Act is different from the Shop and Establishment Act. If one goes through the Factories Act, one will understand all the important aspects such as leave, working hours, extra working hours, payment, etc. Leave with wages and safety details are given in detail.

The Contract Labour Regulation and Abolition Act is another Act. If one employs less than 20 contract workers, there is no need for registration but compliance with all regulations is necessary. If there are more than 20 workers, registration under this act is required.

Regards,
R J Rammohan


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Mr. Ramesh,

The answer depends on whether you are based in San Jose, California (as your note on the top right indicates) or the United Kingdom (UK) (as your second note says) or Uttaranchal, where Haridwar is situated.

If you are in India anywhere, the factory comes under the Factories Act, and the office comes under the Shops & Establishments Act.

R. Ramamurthy

From India, Bangalore
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The Factory Act has its own built-in system. In the case of the Contract Labour (Regulation and Abolition) Act 1970, you have to obtain a Labour License as the Principal Employer if you intend to avail the services of a contractor and their labor if the workforce is 20 or more. With the recommendation of the Principal Employer, the Labour Contractor also has to obtain a license from the Labor Authorities.

Thank you for your understanding.

From India, Nellore
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Dear all,

Thank you for your valuable reply. My basic question was, "If we engage only direct labor in the factory without using any agencies, is it binding/necessary/mandatory to inform the government labor department?" If it is necessary, what will be the procedure for it?

Thanks with regards,
Ramesh Lawande

From United States, San Jose
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Dear Ramesh,

I do not know how it is in the USA from where you seem to be writing, but in India, if the 'labour' are regular employees, they come under the Factories Act. If they are 'Casual Labour' (not permanent), you have to follow the Contract Labour Regulation and Abolition Rules irrespective of whether you engage a Labour contractor or not for the purpose.

R. Ramamurthy

From India, Bangalore
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Dear All,

As per the Factory Act, if the Principal employer wants to engage contractor labor, the principal employer must first obtain contractor registration from the Labor Department. The question arises: how can this be done?

The procedure involves:
1. Drafting a letter to the Labor Department for intimation and record.
2. Making a challan (which can be obtained from the Labor Dept and submitted at an SBI branch).
3. Providing a list of Contractors.

Once these steps are completed, they should be submitted to the Labor Department. Upon receiving the license from the Labor Department, the Principal employer can proceed to make an agreement with the contractor, issue Form-5, and then the Contractor can make a challan. A letter should be drafted and submitted to the Labor Department, following which the Labor Department will issue the license to the contractor for the specific company.

This is the procedure to deploy a contractor in a factory.

From India, Delhi
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Dear R Ramamurthy sir, I am from Nashik, Maharashtra. I worked in Nashik. Now factory is shifted to Daman. with regars
From United States, San Jose
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[QUOTE=LAWANDE RAMESH;2073621]
Dear R. Ramamurthy,

I am from Nashik, Maharashtra, and I used to work in Nashik. However, the factory has now been relocated to Daman.

Warm regards,
Mr. Ramesh

Mr. Ramamurthy,

Please update the location information on your profile to reflect your current location as Daman instead of 'United States, San Jose.' This will help in providing you with more accurate responses to your queries.

Best regards,
R. Ramamurthy

From India, Bangalore
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From India, Secunderabad
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Dear R Ramamurthy sir, I am sorry to bring to your notice that I have not posted my location - US. Where you seen that I do not know. But I appreciate your all reply. with regards ramesh lawande
From United States, San Jose
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Dear Prasad Ji, Is this fact is applicable to whole india..... the separate registration for contract labour is not necessary in case factory is register under factory act ???
From India, Pune
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Dear Mr. Barde,

If you are not engaging contract labor in your factory, there is no need to register with the Labor Department under the Contract Labor Act as the Principal Employer. Your Factory License reflects the strength of your employment.

AVGN Vara Prasad.

From India, Kakinada
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Dear Ramesh,
We are seeing your information displayed at the top right corner: LAWANDE RAMESH is online now, a following member, a contributing member since November 2011, located in the United States, San Jose.
Subject: Re: factory registration under govt. labour dept.
Attribution: https://www.citehr.com/465935-factor...#ixzz2ZHcsmgcN

From India, Secunderabad
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Dear Ramesh Lawande,

Everybody has given guidance according to their wisdom. Now, let me also try to clarify your doubts:

1. As you have subsequently mentioned that you have registered your factory under FA while at Nasik, which has now moved to Daman. In my opinion, you need a fresh registration from the Chief Inspector of Factories at Daman. You have to give closure intimation to the present labor authorities at Nasik. There are many obligations under different labor laws in the case of the closure of a factory, which you need to keep in mind.

2. If your factory is registered under the FA Act, you have to grant annual leaves as per Section 79 of the FA. There is no need to follow the Shop & Establishment Act.

3. If you are not employing Contract Labor, there is no obligation to inform the labor department.

4. As an Occupier, you have to maintain many registers concerning your factory as well as in respect of the workers you have employed, for which you can refer to the Rules framed under.

From India, Mumbai
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Dear Sir,

My construction company has engaged contractors, and being a PE with an L License of 2000 strength, we have the ability to hire contractual labor. Could you please guide us on the following:

- BOCW registration
- Insurance for workers
- PF

Will the above requirements be managed by our company or the contractor in relation to the laborers?

With regards,
Akshay

From India, Bongaigaon
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Dear Akshay Kar,

Let me clarify the application of various labor laws to be implemented by the contractor one by one.

A. Obligations on the part of PE:

1. First of all, you need to take registration from the Registering Officer of the area as you have engaged a contractor for your company.

2. You have to obtain a PF registration code if the number of your company's employees is twenty and above.

3. You need to get an ESI registration code if the number of your company's employees is ten and above, and your establishment is falling in the ESI Implemented area. Otherwise, the employees have to be covered under some insurance policy.

B. Obligations on the part of the Contractor

1. The PE will issue Form-V to the contractor who is required to obtain a license from the Licensing Officer of the area where he has engaged contractor labor.

2. The contractor will register his establishment with the Registering Officer of the area as he has engaged building workers and ensure to pay Cess @ 1% of the cost of construction to the Welfare Board of the state. The building workers will be issued an employment certificate if they wish to register as beneficiaries with the competent officer appointed by the state government.

3. The contractor has to obtain a PF registration code for the contract labor.

4. The contractor has to get an ESI registration code for the contract labor if his establishment is falling in the ESI Implemented area. Otherwise, the employees have to be covered under some insurance policy.

BS Kalsi

Member since Aug 2011

[QUOTE=Akshay Kar;2073821]Dear Sir,

My construction company has engaged contractors and, being the PE with the L License for 2000 strength to engage as contractual labor.

Could you guide me on the following:

- BOCW registration.
- Insurance for workers.
- PF.

Would the above be handled by our company or the contractor concerning the laborers?

From India, Mumbai
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