Dear Nilesh,
I understand you supply manpower to different clients. You need to apply the following tests:
1. If you provide services to a client that comes under central CL&RA, you need not apply for registration as long as your supply of manpower does not exceed 20.
2. If your client falls under State CL&RA rules, please check the applicability strength for registration with the labor commissioner.
3. If you supply manpower to different states, you need to comply with that state's rules like CL&RA, ESI, PT, etc. In such a case, please check your State CL&RA rules; if it states that a contractor has to register even if the engagement strength is less than 20, you have to apply for registration with the concerned labor commissioner.
From India
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7I understand you supply manpower to different clients. You need to apply the following tests:
1. If you provide services to a client that comes under central CL&RA, you need not apply for registration as long as your supply of manpower does not exceed 20.
2. If your client falls under State CL&RA rules, please check the applicability strength for registration with the labor commissioner.
3. If you supply manpower to different states, you need to comply with that state's rules like CL&RA, ESI, PT, etc. In such a case, please check your State CL&RA rules; if it states that a contractor has to register even if the engagement strength is less than 20, you have to apply for registration with the concerned labor commissioner.
From India
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Please have a look at http://labour.nic.in <link updated to site home> (from the Government of India website).
The act states that it applies to any contractor who employs more than 20 workmen. No, it's not 20 per location. The act also states that all contractors covered under the act need a license. Therefore, in your case, a license is required.
Meanwhile, the specific terms of the license and the conditions under which it will be issued depend on the rules that are notified by each state. You will need to review the rules in your state. Where are you located? Or, more precisely, in which states do you supply your contract labor?
From India, Mumbai
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The act states that it applies to any contractor who employs more than 20 workmen. No, it's not 20 per location. The act also states that all contractors covered under the act need a license. Therefore, in your case, a license is required.
Meanwhile, the specific terms of the license and the conditions under which it will be issued depend on the rules that are notified by each state. You will need to review the rules in your state. Where are you located? Or, more precisely, in which states do you supply your contract labor?
From India, Mumbai
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Hi All,
It is as simple as that. The act states that 20 or more than 20 workmen, who are actually under the payroll of the principal employer directly or indirectly, need to be registered for an LC License. Whether it be through outsourcing from a third party or the principal employer. At the end of the day, the principal employer is held responsible for the abidance of the law, not the contractor, since the work is done at his site. However, the principal employer has to enforce the same laws to be followed by the contractor/third party before appointing them through mutual agreements. More precisely, contractors hiring the manpower and deploying it at the client's site will have to obtain the LC License for the client's sake. It is also true that security services will not require an LC where such services are governed by the Security Agencies Act 2005 and the state/district boards.
Thanks and warm regards,
B K Majumdar
9922254949
From India, Vadodara
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It is as simple as that. The act states that 20 or more than 20 workmen, who are actually under the payroll of the principal employer directly or indirectly, need to be registered for an LC License. Whether it be through outsourcing from a third party or the principal employer. At the end of the day, the principal employer is held responsible for the abidance of the law, not the contractor, since the work is done at his site. However, the principal employer has to enforce the same laws to be followed by the contractor/third party before appointing them through mutual agreements. More precisely, contractors hiring the manpower and deploying it at the client's site will have to obtain the LC License for the client's sake. It is also true that security services will not require an LC where such services are governed by the Security Agencies Act 2005 and the state/district boards.
Thanks and warm regards,
B K Majumdar
9922254949
From India, Vadodara
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Dear Nilesh,
Since you are a Manpower Provider company with 50 employees working for different clients, if their salaries are prepared by your company, then your company has to be registered under the Shops & Establishment Act. If your company is preparing the salary for more than 20 employees, then Provident Fund (for 20 employees) and Employee State Insurance (for 10 employees) are also applicable to your establishment.
Regarding your second question, if the number of employees provided by your company exceeds 20 at any given day at your client's site, you will need to obtain a labor license. Please note that different companies require different labor licenses depending on the number of employees exceeding 20.
Kindly remember,
Ratikanta Rath
From India, Durgapur
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Since you are a Manpower Provider company with 50 employees working for different clients, if their salaries are prepared by your company, then your company has to be registered under the Shops & Establishment Act. If your company is preparing the salary for more than 20 employees, then Provident Fund (for 20 employees) and Employee State Insurance (for 10 employees) are also applicable to your establishment.
Regarding your second question, if the number of employees provided by your company exceeds 20 at any given day at your client's site, you will need to obtain a labor license. Please note that different companies require different labor licenses depending on the number of employees exceeding 20.
Kindly remember,
Ratikanta Rath
From India, Durgapur
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There is no dispute at all. When, as a principal employer, you agree to employ contract labor in your establishment, it is incumbent on the principal employer to obtain a Registration certificate. Hence, all employers employing fewer or more than 20 contract laborers should obtain a license from the labor commissioner.
From India, Mumbai
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From India, Mumbai
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Hello,
You are providing employment for more than 20 persons, paying them, and exercising ultimate control over their nature of work and place of work. Here, the meaning of the master-servant relationship is established beyond doubt. Therefore, it is deemed that you are a company employing 50 workers.
Since you are providing contract labor to other establishments, you will be governed by the provisions of the Contract Labour Act. Accordingly, you will have to comply with it. Please notify this to the Commissioner of Labour.
Warm regards,
Kathirvel HR Executive
From India, Coimbatore
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You are providing employment for more than 20 persons, paying them, and exercising ultimate control over their nature of work and place of work. Here, the meaning of the master-servant relationship is established beyond doubt. Therefore, it is deemed that you are a company employing 50 workers.
Since you are providing contract labor to other establishments, you will be governed by the provisions of the Contract Labour Act. Accordingly, you will have to comply with it. Please notify this to the Commissioner of Labour.
Warm regards,
Kathirvel HR Executive
From India, Coimbatore
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Dear Friends,
I work for an infrastructure company. Here is a brief note on the point of discussion:
The project was allocated by the Government of India to a Public Sector Undertaking (PSU) for implementation in the state. The PSU is registered with the Department of Labour, Central. However, for the execution of the project, Form V was issued by the end beneficiary, i.e., the state department. Consequently, we obtained the license from the Department of Labour, State. All formalities such as renewal, returns, etc., are being complied with the Chief Labour Officer (CLO), State.
The PSU is not registered with the state, and we do not have registration with the Department of Labour, Central. The Department of Labour, Central is now insisting on us registering with them.
The questions are as follows:
1. Would registrations with either the state or central authorities not be sufficient?
2. In the given scenario, where should we register?
Please help.
Regards,
Srinivas
From India, Secunderabad
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I work for an infrastructure company. Here is a brief note on the point of discussion:
The project was allocated by the Government of India to a Public Sector Undertaking (PSU) for implementation in the state. The PSU is registered with the Department of Labour, Central. However, for the execution of the project, Form V was issued by the end beneficiary, i.e., the state department. Consequently, we obtained the license from the Department of Labour, State. All formalities such as renewal, returns, etc., are being complied with the Chief Labour Officer (CLO), State.
The PSU is not registered with the state, and we do not have registration with the Department of Labour, Central. The Department of Labour, Central is now insisting on us registering with them.
The questions are as follows:
1. Would registrations with either the state or central authorities not be sufficient?
2. In the given scenario, where should we register?
Please help.
Regards,
Srinivas
From India, Secunderabad
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Dear Mr. Srinivas,
Once the PSU, which is your principal employer, has registered with Central Registration and established itself with Central, only then can you obtain the Labor License from the Central. This may be a ploy by some official, and with your application, they may pressure the PSU to extract some valuable personal documents (the meaning of the document is explained in Kamal Haasan's Hindustani Movie), where Mahatma Gandhi's photo will have a smiling face.
Please discuss this matter with the notice issued to you by the Central Labor Enforcement Officer, along with your principal employer, to ensure that no third party benefits from the Assistant Labor Officer of your area through oral (threatening) instructions.
Break the barrier and immediately discuss this with your client/principal employer to resolve the issue. If you have any doubts, please feel free to call me at 9099024667.
Wishing you all the best.
From India, Kumbakonam
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Once the PSU, which is your principal employer, has registered with Central Registration and established itself with Central, only then can you obtain the Labor License from the Central. This may be a ploy by some official, and with your application, they may pressure the PSU to extract some valuable personal documents (the meaning of the document is explained in Kamal Haasan's Hindustani Movie), where Mahatma Gandhi's photo will have a smiling face.
Please discuss this matter with the notice issued to you by the Central Labor Enforcement Officer, along with your principal employer, to ensure that no third party benefits from the Assistant Labor Officer of your area through oral (threatening) instructions.
Break the barrier and immediately discuss this with your client/principal employer to resolve the issue. If you have any doubts, please feel free to call me at 9099024667.
Wishing you all the best.
From India, Kumbakonam
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Here, the question arises: who is the appropriate government in this case? Many times, the entire funding for a project is being done by the Central Government in a respective state; however, the control for the said project is under the State Government's jurisdiction. In that case, the State government authorities will be the appropriate government. On the other side, when the stake is entirely held by the central government, then the appropriate government is the Central Government.
In your case, it seems that your company, being a PSU controlled by the central government as stated by the authorities, registration has to be obtained from the Central Government.
From India, Mumbai
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In your case, it seems that your company, being a PSU controlled by the central government as stated by the authorities, registration has to be obtained from the Central Government.
From India, Mumbai
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Contract Labor - PPT.ppt
Go on Core Activity-Contra ct labor.pdf