Anonymous
Whether labor license is required for each contract employing 20 or more workmen or for the contractor employed more than 20 workmen through the various contracts in the same establishment under CLRA?
From India, Faridabad
umakanthan53
6018

Dear friend,

Though the CLRA Act,1970 comes into play when there is a contract for service accomplished through the engagement of contract labor between the principal employer and the contractor in whatever the place of work of the establishment of the former is situated, always the emphasis on the criteria for applicability are the number of contract labor in the establishment of the principal employer as well as the contractor which stands at a minimum of 20 in case of both. It would automatically imply that the PE is bound to register himself u/s 7 when the total no of contract labor was/is 20 or above notwithstanding the no of contractors and the contractor is bound to take up licence u/s12 when he engages 20 or more no of contract labor for any particular contract work.

In other words, the registration of the PE and the licensing of the contractor is both work-specific and number specific. I would request you to go through sections 1 (4) (b), 7 and 12 of the CLRA Act,1970.

From India, Salem
R.N.Khola
363

If contract labour is engaged in the state of Haryana & the appropriate Govt. is also Haryana then RC & Labour Licence is required under CLRA Act in case the employment of Contract Labour is fifty or more.
R N KHOLA

From India, Delhi
Madhu.T.K
4226

Licence is contractor specific and, therefore, who all are deploying 20 or more persons in your establishment should obtain separate licence under the CLRA. For that you will have to issue separate form VI to each contractor to enable them to take licence.
From India, Kannur
sitaramsn
26

The basis for contract labour license depends on state rules. At the same time for PE it is the total number of contract workers in organization. it differs in case of license to contractor depending on his number.
Basically the underlying principle of activities is as stated by Sri Umakantanji.

From India, Hyderabad
PRABHAT RANJAN MOHANTY
586

A contractor awarded multiple work orders by the Principal Employer to execute work. Then the contractor has to take separate Licence for each work order if the engagement of labour is equal or more than the limit prescribed by the appropriate Govt. In such cases PE will have to issue separate form VI for each work order to the contractor to enable them to take licence.
From India, Mumbai
sudha-acharya
Is labour license required in case of 2 different projects (different work orders) at the same location and with the same principal employer having less than 20 manpower i.e. 17-18 in each project? please advise.
From India, Mumbai
Madhu.T.K
4226

If the total number of contract workers engaged through all the contractors put together is 20 or more, then registration under CLRA Act is mandatory for the principal employer. At the same time, licence is meant for the contractor who engages 20 or more workers. Therefore, if one contractor is engaging only 19 workers, he need not obtain a licence.
From India, Kannur
Pocket HRMS
8

Under the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA), a labor license is mandatory for contracts employing 20 or more workers, regardless of whether the contractor employs more than 20 workers through multiple contracts in the same establishment.

The Act defines a "contract labourer" as someone employed by or through a contractor to perform work typically done by the establishment's employees. A contractor cannot employ contract labor in any establishment without obtaining a license from the appropriate government.

The application for a license must be submitted in the prescribed form with the required fee. The appropriate government reviews the application and relevant factors before granting or refusing the license.

The license is valid for one year and can be renewed periodically, with a fee payable for renewal.

The Act sets certain conditions for contractors employing contract labour, including maintaining a register of contract labourers, providing them with the same facilities as regular employees, and ensuring they are not subjected to unfair labour practices.

Penalties, such as imprisonment and fines, are specified for contravening the Act's provisions.

In summary, the CLRA requires a labor license for each contract employing 20 or more workers. The contractor must pay a fee and adhere to the Act's conditions.

From India, Dombivali
PRABHAT RANJAN MOHANTY
586

Dear S Acharya,
Labour license is not required because workmen engagement in each work order is less than twenty.
The location may be same but two different work orders. The requisite document to obtain license is is work orders.
No, CL (R&A) license is required to take since work force is less than twenty. Hopefully you understand.

From India, Mumbai
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