Labour Licence
1. What is the number of workers in Gujarat above which one has to apply for a Labour Licence? (As in Maharashtra, it has increased to 50).
2. If a contractor receives two work orders from one principal employer, is the Labour Licence to be obtained one or two?
3. If work orders are received for working at 30+ locations:
a. Is a licence to be obtained for each site separately or for one employer?
b. Does it depend on the number of workers on each site or the number of workers for each employer?
From India, Mumbai
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1. What is the number of workers in Gujarat above which one has to apply for a Labour Licence? (As in Maharashtra, it has increased to 50).
2. If a contractor receives two work orders from one principal employer, is the Labour Licence to be obtained one or two?
3. If work orders are received for working at 30+ locations:
a. Is a licence to be obtained for each site separately or for one employer?
b. Does it depend on the number of workers on each site or the number of workers for each employer?
From India, Mumbai
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Hi Vikram,
Below mentioned are the details:
1. Registration is compulsory for the principal employer to employ 10 or more contract laborers. The contractor must pay the security deposit at the rate of Rs. 270/- for each workman.
2. If you have received two work orders for the same location/premises, then only one license needs to be obtained.
3. If you have received work orders for 30 or more locations, then you need to obtain licenses location-wise based on the number of employees (based on applicability).
Feel free to call or revert for any assistance.
From India, Bangalore
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131Below mentioned are the details:
1. Registration is compulsory for the principal employer to employ 10 or more contract laborers. The contractor must pay the security deposit at the rate of Rs. 270/- for each workman.
2. If you have received two work orders for the same location/premises, then only one license needs to be obtained.
3. If you have received work orders for 30 or more locations, then you need to obtain licenses location-wise based on the number of employees (based on applicability).
Feel free to call or revert for any assistance.
From India, Bangalore
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Here I would like to add the information as:
1. As per my knowledge and the information I am getting on the site, the license by the contractor is required if he is employing 20 casual laborers instead of 10 (Please check and confirm). Now the question is:
i) Employing 20 or more employees on each site of an employer or 20 for the employer may work on different sites, in our case 30+, will be the criteria for obtaining the license.
2) There are two work orders from one principal employer for working on their different sites - e.g., one work order for 15 sites and another one for another 17 sites, then the labor license would be:
i) Two as there are two work orders
ii) Only one as there is one principal employer
iii) 32 labor licenses (depending upon the number of casual labor employed) i.e. labor licenses for the sites where there would be more than 20 casual laborers and no license for where it is less than 20.
Second issue:
a. After having a labor license, is it necessary to renew the same if the number of workers at the site is reduced below 20 as the job is near completion.
b. Can the same be canceled as not more than 20 workers would be required on the site hereafter, but before completion of the job and before getting a completion certificate.
c. What would be if the license is not renewed and we go for its cancellation after a few months after getting a completion certificate.
V Dave
From India, Mumbai
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1. As per my knowledge and the information I am getting on the site, the license by the contractor is required if he is employing 20 casual laborers instead of 10 (Please check and confirm). Now the question is:
i) Employing 20 or more employees on each site of an employer or 20 for the employer may work on different sites, in our case 30+, will be the criteria for obtaining the license.
2) There are two work orders from one principal employer for working on their different sites - e.g., one work order for 15 sites and another one for another 17 sites, then the labor license would be:
i) Two as there are two work orders
ii) Only one as there is one principal employer
iii) 32 labor licenses (depending upon the number of casual labor employed) i.e. labor licenses for the sites where there would be more than 20 casual laborers and no license for where it is less than 20.
Second issue:
a. After having a labor license, is it necessary to renew the same if the number of workers at the site is reduced below 20 as the job is near completion.
b. Can the same be canceled as not more than 20 workers would be required on the site hereafter, but before completion of the job and before getting a completion certificate.
c. What would be if the license is not renewed and we go for its cancellation after a few months after getting a completion certificate.
V Dave
From India, Mumbai
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Hi Vikram,
As per the act, it is 20.
1. Applicable on Employing 20 or more employees on each site.
2. 32 labour licenses (depending on the number of casual labor employed) i.e. labor licenses for the sites where there would be more than 20 casual laborers and no license for where it is less than 20.
3. If the number of workers is reduced, not required to renew or cancel, but if the number of employees increases, you need to amend the license.
4. After completion of the job, you can surrender the license along with the completion certificate.
From India, Bangalore
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As per the act, it is 20.
1. Applicable on Employing 20 or more employees on each site.
2. 32 labour licenses (depending on the number of casual labor employed) i.e. labor licenses for the sites where there would be more than 20 casual laborers and no license for where it is less than 20.
3. If the number of workers is reduced, not required to renew or cancel, but if the number of employees increases, you need to amend the license.
4. After completion of the job, you can surrender the license along with the completion certificate.
From India, Bangalore
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Hello Praveenji,
Thank you for your prompt reply. There are different diverse views coming on the subject. As I told you, we have one principal employer who has given us as Contractor two contracts: one for 11 sites and another one for 12 sites in Ankleshwar, Gujarat.
The diverse views are:
i. We should take one labor license as there is one principal employer.
ii. We should take two labor licenses as we have two contracts.
iii. We should take 33 licenses (as we have 33 sites), depending on the number of laborers employed there. To take licenses only if the number of laborers exceeds 20.
Now my question is:
1. Is the license Employer-wise, contract-wise, or site-wise to determine whether we should apply for one license, two licenses, or 33 or fewer licenses depending on the number of laborers?
2. The labor license should be obtained when "20 or more workers are employed or were employed on any day preceding 12 months." So, to start the work, there is no need to apply for the license initially as the number of workers would be less than 20 on any sites or on a few sites individually. We can apply for the license in 12 months once we increase the limit of 20 for the employer/contract or for each separate site.
Please elaborate on the issue.
From India, Mumbai
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Thank you for your prompt reply. There are different diverse views coming on the subject. As I told you, we have one principal employer who has given us as Contractor two contracts: one for 11 sites and another one for 12 sites in Ankleshwar, Gujarat.
The diverse views are:
i. We should take one labor license as there is one principal employer.
ii. We should take two labor licenses as we have two contracts.
iii. We should take 33 licenses (as we have 33 sites), depending on the number of laborers employed there. To take licenses only if the number of laborers exceeds 20.
Now my question is:
1. Is the license Employer-wise, contract-wise, or site-wise to determine whether we should apply for one license, two licenses, or 33 or fewer licenses depending on the number of laborers?
2. The labor license should be obtained when "20 or more workers are employed or were employed on any day preceding 12 months." So, to start the work, there is no need to apply for the license initially as the number of workers would be less than 20 on any sites or on a few sites individually. We can apply for the license in 12 months once we increase the limit of 20 for the employer/contract or for each separate site.
Please elaborate on the issue.
From India, Mumbai
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The Act provides for obtaining a labor license applicable to all contractors who employ 20 or more contract laborers. This applies regardless of sites, contracts, or principal employers. Once we, as contractors, employ 20 or more laborers across all the sites under us, even if they are under different employers, we need to obtain a labor license. In such circumstances, we should acquire one labor license that covers all the sites and employers, instead of applying for separate licenses in each state or for individual sites where we operate. The sole criterion is the number of casual workers employed. Please shed light on this aspect as well.
From India, Mumbai
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From India, Mumbai
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Hi Vikram,
It applies to every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour. So, it is applicable to all your sites. The principal employer needs to take a Registration certificate for every establishment.
It applies to every contractor who employs or who employed twenty or more workmen on any day of the preceding twelve months. Once the principal employer obtains the registration certificate in form II, he will issue form V to his vendors/contractors, and they will apply for a license.
Regarding work orders - You have received different work orders for different sites, so there is no question of obtaining one license or two. You are going to obtain a license based on the work order and site. For example, if you have received one work order for Ankleshwar, for that site, you will attach one work order and one form V to obtain a license.
Wherever the number of employees engaged is more than the permissible limit, the establishment needs to obtain a CLRA Registration Certificate, and the vendor needs to obtain a CLRA license.
Feel free to call or revert for any clarification.
From India, Bangalore
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It applies to every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour. So, it is applicable to all your sites. The principal employer needs to take a Registration certificate for every establishment.
It applies to every contractor who employs or who employed twenty or more workmen on any day of the preceding twelve months. Once the principal employer obtains the registration certificate in form II, he will issue form V to his vendors/contractors, and they will apply for a license.
Regarding work orders - You have received different work orders for different sites, so there is no question of obtaining one license or two. You are going to obtain a license based on the work order and site. For example, if you have received one work order for Ankleshwar, for that site, you will attach one work order and one form V to obtain a license.
Wherever the number of employees engaged is more than the permissible limit, the establishment needs to obtain a CLRA Registration Certificate, and the vendor needs to obtain a CLRA license.
Feel free to call or revert for any clarification.
From India, Bangalore
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Regarding the work order - You have received different work orders for different sites, so there is no question of obtaining one license or two. You are going to obtain a license based on the work order and site. For example, if you have received one work order for Ankleshwar, you will attach one work order and one Form V to obtain the license.
As for the above, we have not received separate work orders for different sites. As mentioned earlier, we have received two work orders: one for 11 sites and another one for 12 sites. Since the work orders are not site-specific, one labor license will be available against one work order for all the 11 sites, and another labor license will be available against another work order for the other 12 sites.
Is this correct?
From India, Mumbai
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As for the above, we have not received separate work orders for different sites. As mentioned earlier, we have received two work orders: one for 11 sites and another one for 12 sites. Since the work orders are not site-specific, one labor license will be available against one work order for all the 11 sites, and another labor license will be available against another work order for the other 12 sites.
Is this correct?
From India, Mumbai
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Hi Vikram,
With only one license, how will you deploy people to other sites? Each site needs to have a labor license. You can obtain the labor license for different locations with the same work order. It's better to get an annexure for two work orders from the Principal Employer (including a list of locations with addresses of the sites), which will assist you in processing the labor license.
Have you received Form V and Form II from the Principal Employer? Check how many Form II they have and whether they have included you as a vendor in all locations or only certain locations. This information will help you determine how many locations you need to obtain a license for.
Please feel free to call or reply for any clarification.
From India, Bangalore
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With only one license, how will you deploy people to other sites? Each site needs to have a labor license. You can obtain the labor license for different locations with the same work order. It's better to get an annexure for two work orders from the Principal Employer (including a list of locations with addresses of the sites), which will assist you in processing the labor license.
Have you received Form V and Form II from the Principal Employer? Check how many Form II they have and whether they have included you as a vendor in all locations or only certain locations. This information will help you determine how many locations you need to obtain a license for.
Please feel free to call or reply for any clarification.
From India, Bangalore
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Hi Vikram,
One license is sufficient if the nature of jobs is similar for both the work orders under the following conditions:
1. The date of commencement of the jobs is the same.
2. The contract work is to be carried out in the same state, and the Licensing Authority is the same.
3. If the Licensing Authority's jurisdiction is different based on the work you are going to carry out in different locations, they may insist on obtaining the license under their jurisdiction.
4. If you are planning to deploy manpower at CNG Stations/outlets, then one license is sufficient.
5. To the best of my knowledge, there is no company in India with 30+ locations (premises) in one state where contract work is to be carried out, other than in Real Estate.
Suresh
From India, Thane
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One license is sufficient if the nature of jobs is similar for both the work orders under the following conditions:
1. The date of commencement of the jobs is the same.
2. The contract work is to be carried out in the same state, and the Licensing Authority is the same.
3. If the Licensing Authority's jurisdiction is different based on the work you are going to carry out in different locations, they may insist on obtaining the license under their jurisdiction.
4. If you are planning to deploy manpower at CNG Stations/outlets, then one license is sufficient.
5. To the best of my knowledge, there is no company in India with 30+ locations (premises) in one state where contract work is to be carried out, other than in Real Estate.
Suresh
From India, Thane
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