If any contractor is providing services of labor supply to different organizations at different locations in the same state, but the number of laborers is below 9 at each location, and the total number of laborers altogether is greater than 20 when adding all supplied labor to different organizations by a single contractor, then should this contractor have a labor license or not?
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From India, Delhi
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From India, Delhi
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As per rules: No, but if he wish to remain in bussines: Yes. Nowdays many employers seek prior license.
From India, Moradabad
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16From India, Moradabad
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Dear Rathor,
The CL (R&A) Act applies to every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labor and to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen. We need to assess whether the establishments to whom you are providing services of labor supply are employing 20 or more contract labor, which includes yours plus other contractors. In that case, the PE of that establishment shall have to take registration from the Registration officer of the Area. Since you are presently supplying contract labor, the number of which is below 9 at each location, you need not take licenses from the licensing officer. But mind it, if any day your numbers become 20 or more in any of the establishments you are dealing with, you shall have to obtain a license.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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The CL (R&A) Act applies to every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labor and to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen. We need to assess whether the establishments to whom you are providing services of labor supply are employing 20 or more contract labor, which includes yours plus other contractors. In that case, the PE of that establishment shall have to take registration from the Registration officer of the Area. Since you are presently supplying contract labor, the number of which is below 9 at each location, you need not take licenses from the licensing officer. But mind it, if any day your numbers become 20 or more in any of the establishments you are dealing with, you shall have to obtain a license.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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No. If the contractor has more than 20 workers employed by him, he shall take a license regardless of whether he is supplying less than 20 workers to each PE. The PE does not need to register if the total number of workers engaged through all his contractors is less than 20.
Varghese Mathew
From India, Thiruvananthapuram
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Varghese Mathew
From India, Thiruvananthapuram
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As per the section you have quoted, it applies to a contractor who has more than 20 workmen, not 20 at any single location. So the contractor is very much covered in the act. The requirement of a license depends on the state rules, so the state rules may provide for a license only if he has more than 20 in each location. According to me, it seems that he should take a license as he has more than 20 workmen.
From India, Mumbai
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From India, Mumbai
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My dear Mathew,
I am sorry to contradict on your point. What you said is that "if the contractor is having more than 20 workmen employed by him, he shall take a license irrespective of the fact that he is supplying less than 20 workers to each PE. The PE need not take registration if the total number of his workmen engaged through all his contractors is less than 20." My understanding is that if a contractor is deploying 9-10 workmen in different establishments, even though the total number comes to more than 20, he need not take a license.
Now my query to you is if the Principal Employer has not obtained the registration certificate from the Registering Officer of the area, whether he can still issue Form V to the contractor. If the contractor is supplying 9-10 workmen in different establishments, from which PEs, he should obtain Form V to enable him to obtain the license. Whether he should collect a bunch of Form V from all the PEs, for whom he is supplying the contract labor before applying for the license.
I would request my seniors as well to help me in clearing my doubts.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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I am sorry to contradict on your point. What you said is that "if the contractor is having more than 20 workmen employed by him, he shall take a license irrespective of the fact that he is supplying less than 20 workers to each PE. The PE need not take registration if the total number of his workmen engaged through all his contractors is less than 20." My understanding is that if a contractor is deploying 9-10 workmen in different establishments, even though the total number comes to more than 20, he need not take a license.
Now my query to you is if the Principal Employer has not obtained the registration certificate from the Registering Officer of the area, whether he can still issue Form V to the contractor. If the contractor is supplying 9-10 workmen in different establishments, from which PEs, he should obtain Form V to enable him to obtain the license. Whether he should collect a bunch of Form V from all the PEs, for whom he is supplying the contract labor before applying for the license.
I would request my seniors as well to help me in clearing my doubts.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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