Hello Sir,

I have 18 employees on contract basis. I think there is no need to register up to 20 employees, but in the future, if we increase the number of employees on contract basis, then we will have to register with the labor office.

Please tell me about the formalities required at the time of registration with the labor office.

From India, Haldwani
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I have 18 employees on contract bases. I think there is no need to register up to 20 employees, but in the future, if we increase the number of employees on contract bases, then we have to register with the labor office.

Please tell me about the formalities required at the time of registration with the labor office.

From India, Haldwani
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Dear Kumar,

Please contact the labor inspector of your region. You need to obtain Form V from your principal employer, then fill out the registration form and apply for a license. The fees will depend on the manpower, specifically on the number of employees for whom you are obtaining the license.

Mahesh

From India, Bangalore
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Dear Kumar,

This act applies to every establishment in which five or more workmen are employed or were employed on any day of the preceding twelve months as contract labour;

To every contractor who employs or who employed on any day of the preceding twelve months five or more workmen.

Registration (Employer/Establishment): Application in Form-I in triplicate to be filed by the Establishment, which sought to be registered under this act. (Labour license fee will depend upon the labour engaged)

The certificate of registration granted shall be in Form-II and shall contain the following particulars.
A. The Name and Address of Establishment.
B. The maximum number of workmen to be employed as contract labour in the Establishment.
C. The type of business, trade, industry, manufacture, or occupation, which is carried on in The Establishment.

Registration (Contractor/Agency): Application in Form-IV shall be made in triplicate to the licensing officer of the area in which the Establishment in relation to which he is the contractor.

The application for the grant of a license shall be accompanied by a certificate by the Principal Employer in Form-V to the effect that the applicant has been employed by him as a contractor in relation to his establishment and that he undertakes to be bound by all the provisions of the act.

The contractor has to deposit (Security) Rs. 50/- for each of the workmen to be employed as contract labour, in respect of which the application for a license has been made and also to pay an amount as per the details mentioned below. In case of a cooperative society, Rs. 10/-

The certificate of the license granted shall be in Form-VI and shall be subject to the following conditions.

The license shall remain in force for 12 months from the date it is granted or renewed, or till the actual date of completion of the contract work, whichever is earlier.

Renewal of License:
1. Every contractor shall apply for renewal of the license in Form-VII in triplicate not less than 30 days before the expiry date.
2. The fee payable for the renewal of the license shall be the same as for the grant thereof.

Applicability of other laws to the workers engaged under Contract Labour (Regulation & Abolition) Act, 1970.

1. Employees Provident Fund and Miscellaneous Provisions Act, 1952.
2. Employees State Insurance Act, 1948.
3. Factories Act, 1948
4. Payment of wages Act, 1936.
5. Minimum Wages Act, 1948.
6. Workmen's Compensation Act, 1923

Registers to be maintained under the Act

Sl. No.
Form No.
Description of Forms
01.
Form-XII
Register of Contractors
02.
Form-XIII
Register of Persons Employed
03.
Form-XIV
Employment Card
04.
Form-XV
Service Certificate
05.
Form-XVI
Muster Roll
06.
Form-XVII
Register of Wages
07.
Form-XX
Register of deduction for damage or loss
08.
Form-XXI
Register of Fines
09.
Form-XXII
Register of Advances
10.
Form-XXIII
O.T. Register

Thanks & Regards
RAJACHAND.POTLURI
09492976775

From India, Hyderabad
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Dear Kumar,

This act 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; to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.

Provided that the appropriate Government may, after giving not less than two months' notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or contractor employing such a number of workmen less than twenty as may be specified in the notification.

Always give correct information.

Sanjay
Advocate

From India, Delhi
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Can anyone let me know if I can get a labour licence for contractors without having worked anywhere before? Actually I would like to commence work after getting the licence. Is this possible?
From India, Mumbai
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Dear Raj Chand and Sanjay, both of your arguments i.e 5 or more and 20 or more are correct because in Andhra Pradesh(5 or more) where as centarl act is saying 20 or more........both are correct Jai
From India, Hyderabad
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Only in Andhra Predesh 5 or more other than Ap it’s 20 or more&for central government sites it’s 20 for all over india satya
From India, Hyderabad
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Dear
Pl refer following and go accordingly for its implemetation
Satish


CONTRACT LABOUR

(REGULATION & ABOLITION) ACT, 1970

OBJECT


•To regulate employment of contract labour
• To provide for its abolition in certain cases


CONTRACT LABOR

(REGULATION & ABOLITION) ACT, 1970
Applicability - Sec 1



• Every Establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour.
• To every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.
• Does not apply to Establishments where work only of an intermittent or casual nature is performed.
• <120 days in preceding 12 months or if it is of a seasonal character I.e. <

60 days in a year.
CONTRACT LABOUR

(REGULATION & ABOLITION) ACT, 1970


Establishment
Means –
• Any office or department of the Government or a local authority; or
• Any place where any industry, trade, business, manufacture or occupation is carried on.


Registration of Establishment - Sec 7



• Principal employer employing 20 or more workmen through the contractor.
• Rule 17 Form I
• Certificate of Registration in Form II
• Change in particulars of Regn to be notified within 15 days with reasons for change.
• Incomplete form – amendment to be carried within 15 days from receipt of intimation.


LICENSING OF CONTRACTORS

• No contractors to undertake or execute work through CL except under and in accordance with a license issued under the Act.
• Form IV – Rules 21 to 23
• Certificate from Principal employer-Form V
• Conditions – hours of work, wages and other essential amenities.

Terms and conditions of license

• License shall be in Form VI
• Non transferable
• Contract labour should not exceed, on any day, maximum specified in the license.
• Wages, hours of work and other conditions of service.
• Notify any change in no. of workmen or conditions of service.
Terms and conditions of license


•Number of employees not to exceed maximum specified in the license.
•Wages and conditions of service as per Rule 25 IV and V.
•Room for use of children under six years where 20 or more women are ordinarily employed.
•Intimation in Form VI-A the date of commencement and completion of each contract within 7 days of commencement and completion.
Validity of license
•Every license shall remain in force up to 31st December of the year for which the license is granted or renewed.
•Application for renewal to be made in Form VII not less than 60 days before expiry.
•Deemed to have been renewed until the date when renewal is granted or refused.

Liability of Principal Employer - Sec – 20

•If the contractor does not provide amenities under S 16 to 19 within the time prescribed such amenities shall be provided by the principal employer.
•Expenses incurred by principal employer in providing these amenities may be recovered from the contractor by deductions or as a debt payable.

Liability of Principal Employer - Sec – 20

•Where the contractor fails to pay wages within the time prescribed or makes short payment, then the principal employer to pay wages in full or unpaid balance due.
•Principal employer can recover the amount from contractor by deductions or as a debt payable.

Welfare and health measures

•S.16 r/w Rule 40
•Where 100 or more CL are employed.
•Work likely to continue for 6 months.
•Contractor shall provide canteen within 60 days.

Canteen

•Where PE has a canteen u/s 46 of Factories Act, arrangements made with
PE by the Contractor will be considered as due compliance.
•Where contractor fails to provide a canteen, the PE shall provide within 60 days of the expiry of the time provided to the contractor.

•Rule 39
•Where CL is required to halt at night.
•Work to continue for 3 months or more
•Contractor to provide and maintain rest rooms within 30 days.
•As specified by Commissioner of Labour.
•Sufficiently lighted and ventilated and maintained in a clean and comfortable condition.

Rest Rooms


•Where PE is required to provide rest rooms under the Factories Act any arrangements made by Contractor with PE for use of rest rooms by CL
will be due compliance.
•If Contractor fails, the PE to provide such amenity within 30 days of the expiry of the period laid down in the Rule.

Latrines and Urinals


•Contractor shall provide –
•In every establishment coming within the scope of the Act
•1 latrine for every 20 persons upto the first 100 and 1 for every 30 thereafter.
•Partitioned to secure privacy.
•Proper identification – Men – Women


Latrines and Urinals

•1 urinal for male workers upto 50
•1 urinal for female workers upto 50
•Adequately lighted and maintained in good sanitary condition at all times.
•Comply with requirements of public health authorities.

Latrines and Urinals

•Where PE under Factories Act has provided latrines n urinals arrangements by contractor with PE for use of the same by his workmen shall due compliance.
•If the contractor fails to provide within 60 days, the PE to comply within
30 days of the expiry of 60 days given to contractor.

Washing Facilities


•S. 18 r/w Rule 42
•Contractor to provide –
•Adequate and suitable facilities for washing
•Adequate number of buckets and tumblers or mugs and water supply @ 20 litres a day for each workman employed.
•Within 30 days – on failure by PE within 60 days from the expiry of 30 days.

First Aid Facilities

•S. 19 r/w Rule 44
•Not less than 1 box for every 150-contract labour or part thereof.
•Different provisions for contents for establishments employing <50 and >
50.
•Nothing except the prescribed contents shall be kept in the First Aid Box.

First Aid Facilities

•Box to be kept in charge of a responsible person.
•Who shall be readily available during working hours.
•Where the No of CL is 150 or more the person in charge shall be a trained
person in First Aid treatment.

Wages S.21 Rule 45-54 Ch VI

•Rules 45 to 51will not apply where Payment of Wages or Minimum Wages
Act applies.
•Contractor to fix wage period.
•Not to exceed one month.
•To be paid within 3 days from the end of the wage period where wage period is 1 week or a fortnight.
•In other cases before 7th or 10th day depending on No of workers (1000).

Wages

•In case of termination earned wages to be paid before the expiry of the day
succeeding the one on which employment is terminated.
•Payment of wages to be made on a working day, at the work site and
during working hrs
•Where work is completed before the wage period, payment to be made
within 48 hours of last working day.

Wages

•To be paid directly to worker or to other person authorised by him in this
behalf.
•Wages to be paid in coin or currency or both.
•To be paid without any deductions except those permissible under the
Payment of Wages Act.

? Notice showing wage period, place and time of disbursement shall be displayed at the place of work and copy to be sent to PE under acknowledgement.

Wages

•Duty of contractor to disburse wages in the presence of the authorised
representative of Principal Employer.
•PE to nominate a rep to be present at the time of disbursement of wages by
contractor.
•Rep shall certify the amounts pd as wages.

Wages

•Rep shall affix his initials against each entry and record a certificate……
•“Certified that the amount shown in column No ___has been paid to the
workman concerned in my presence”.
•Entries denoting time, place and payments made shall be made in the
register simultaneously as the payments are made.
Registers, Records and Notices

•Following registers under PW Act or MW Act shall be deemed to
maintained under the CL Act under Rule 59(1):

l Muster Roll, Wage Register, Register of deductions, Register of
overtime, Register of fines, Register of Advances.


Registers, Records and Notices

•Where 59(1) does not apply –
•Contractor to maintain –
•Muster Roll-cum-Wage Register under Rule 27(1) of MW Rules.
•Attendance card-cum-Wage slip under Rule 27(2) of MW Rules.
•Signature or thumb impression of every worker on the wage register be obtained and entries to be authenticated by the contractor.

Registers…..Rule 61

•All Registers and Records shall be kept at an office or the nearest convenient bldg within the precincts of the work place or at a place within a radius of 3 kms.
•Maintained legibly in English, Hindi or Marathi.
•To be preserved in original for a period of 3 calendar years from the date of last entry.
•To be produced on demand before Inspector or other authority.

Notices Rule 62

•Notices showing the wages, hours of work, wage periods, dates of payment, names and addresses of inspectors having jurisdiction, the PE or the Contractor shall display date of payment of unpaid wages in English, Hindi or Marathi in conspicuous places at the Est and the worksite as the case may be.

Registers - Rule 55

•Register in form VIII by Principal Employer.
•Employment card in form X

Returns Rule 63
•Form XXI by Principal employer by 15th Feb.

Abstract


•Every Contractor shall display an Abstract of the Act and the Commissioner of Labour may approve Rules in English, in Hindi or in Marathi in such Form as.
Prohibition of Employment of Contract Labour - Sec – 10


•By Appropriate Government through notification.

Criteria for abolition


•By Appropriate Government through notification.


Consequences on abolition


•Contractor gets eliminated and so does the contract.
•Contract Labour does not automatically become direct employees of Principal Employer.
•Contract Labour gets preference for employment with Principal Employer subject to their meeting the employment requirements.
•The displaced Contract Labour can still raise an I.d claiming that contract was sham and they were always the direct employees of the Principal Employer.
•Contract Labour cannot be employed in such processes thereafter.


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Make it clear whether you want to obtain a REGISTRATION CERTIFICATE or a CONTRACT LABOUR LICENSE? Under the Contract Labour Act-1970, there are two components: 1) To obtain a 'Registration Certificate' (by all Principal Employers who are hiring more than 19 employees in any establishment through contractors on any day) by filing an application through FORM-I (Rule 17(a)). 2) To obtain a Contract Labour License (by all Contractors who are deploying more than 19 employees in any establishment on any day (5 in the state of Andhra Pradesh and 10 in the state of Gujarat)) by filing an application through FORM IV (Rule 21(1)) along with Form-V which has to be issued by the Principal Employer.
From India, Mumbai
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Contract labor license will be issued to you only when you have engaged any contractual labor for any organization. If you don't have any contractual labor for any organization, how will the license be issued to you? The contact license is issued only after obtaining Form 5 from that organization, and the license will be valid for that particular organization. For issuing Form 5, at least 20 persons must be engaged by the employer.
From United States, Chicago
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Dear Sir/Madam,

Greetings.

We, a group of students from XLRI - Personnel Management & Industrial Relations course in Jamshedpur, are conducting a survey on the various perspectives of the contract labor system in the Indian industry.

The current survey is being carried out as partial fulfillment of a two-year postgraduate course requirement, and the data collected will be utilized solely for academic purposes.

Therefore, I kindly request you to spare a few minutes to participate in the survey, which will aid us in gaining further insights into the contract labor system in the country. The data collected will be used exclusively for academic purposes. If you prefer not to disclose your name, please leave the fields blank:

[A SURVEY ON CONTRACT LABOR IN INDUSTRY: INDUSTRY PERSPECTIVE](http://google.com) *(link updated to site home)*

*[Search on Cite](https://www.citehr.com/results.php?q=A%20SURVEY%20ON%20CONTRACT%20LABOR%2 0IN%20INDUSTRY%20INDUSTRY%20PERSPECTIVE) | [Search on Google](https://www.google.com/search?q=A%20SURVEY%20ON%20CONTRACT%20LABOR%20IN%2 0INDUSTRY%20INDUSTRY%20PERSPECTIVE)*

Additionally, we will share the study results with you for the benefit of the industry.

Thank you.

From India, Calcutta
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You will get a license only after obtaining Form 5 from any company. If the strength exceeds 20, then the principal employer will issue Form 5 to you. Afterward, you can apply for the license. There is no need for any experience in this regard.

J.S. Negi

From United States, Chicago
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Dear Member, Go through your applicable Rules for having format of Form V. Regards, R.N.Khola
From India, Delhi
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Dear Sir,

Under Section 7 of the Contract Labour (Regulation & Abolition) Act, the employer willing to engage 20 or more labor through a contractor has to get itself registered. Under the specific state rules, there is a certain amount of registration fees fixed for a certain number of contract labor, and a specific application form is also prescribed. Please apply in the prescribed form with the appropriate fee to the registering officer.

From India, Delhi
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