Varghese & Kargaonkar
This is not the view being taken by the labour officers in many states.
Most companies are not taking the risk of the courts later declaring that mere supply of goods is only supply of goods, and installation and erection do not come under the term mere supply, etc. I do not know of any case decided by the court on this count. If anyone has info on that, please let me know.
That is also the reason that many of the state rules provide for a temporary license taken for up to 15 days. In most cases, a license is not required as they are less than 10 workers. However, the ones I have been seeing in large factories is that teams that come to install transformers, boilers, etc., are often as large as 25-30 people. I saw one team consisting of 85. This is more likely in the case of large projects like the expansion of plants.
In any case, for the mitigation of risk, companies insist on ensuring that PF, ESIC and/or Workman Liability Insurance (or workman compensation insurance) is taken. Also, they try to ensure that the concerned workers are paid above minimum wages.
From India, Mumbai
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2642This is not the view being taken by the labour officers in many states.
Most companies are not taking the risk of the courts later declaring that mere supply of goods is only supply of goods, and installation and erection do not come under the term mere supply, etc. I do not know of any case decided by the court on this count. If anyone has info on that, please let me know.
That is also the reason that many of the state rules provide for a temporary license taken for up to 15 days. In most cases, a license is not required as they are less than 10 workers. However, the ones I have been seeing in large factories is that teams that come to install transformers, boilers, etc., are often as large as 25-30 people. I saw one team consisting of 85. This is more likely in the case of large projects like the expansion of plants.
In any case, for the mitigation of risk, companies insist on ensuring that PF, ESIC and/or Workman Liability Insurance (or workman compensation insurance) is taken. Also, they try to ensure that the concerned workers are paid above minimum wages.
From India, Mumbai
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Varghese ji wrote rightly, there is in CL 1970 (RA) only a licensing provision for a few categories like housekeeping, fabrication, loading & unloading, material shifting, gardening. But in the above case, there is no need to obtain a license from the authority because the work does not align with the nature of CL1970. There are fewer than 20 workmen. However, if the organization is registered under the P.F. & E.S.I.C. Act, it should be the responsibility of the principal employer.
Regards,
Ashish
Contact No. 09469489001
From India, Velluru
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Regards,
Ashish
Contact No. 09469489001
From India, Velluru
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I hope you all have seen the latest court judgment that clearly states that employers' liability exists under all laws irrespective of whether it is a service contract or labor supply. It's about compensation for employees who were recruited by an agency to ferry cars of Mahindra and Mahindra from the factory to various other places. The fact that it was a service contract, piece rate, not controlled by the PE, and not even in the factory was disregarded by the court.
So, I think you better obtain a license if the numbers cross the limit.
From India, Mumbai
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So, I think you better obtain a license if the numbers cross the limit.
From India, Mumbai
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Can you give the title and citation of the Mahindra;s case please? Varghese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear members,
I am in total agreement with Mr. Korgaonkar. The Contract Labor Act comes into play only in a situation wherein a contract of service is hired by an establishment through contract labor that is: (1) perennial and on a day-to-day basis, (2) incidental but necessary to the core activity, (3) sufficient enough to permit the employment of a considerable number of regular and full-time workforce, and (4) being carried out mostly in similar establishments through regular workers. In my opinion, when the erection of a particular machinery, due to its enormity or sophistication, is inextricably linked to its sale or supply, it cannot be brought within the above parameters.
From India, Salem
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I am in total agreement with Mr. Korgaonkar. The Contract Labor Act comes into play only in a situation wherein a contract of service is hired by an establishment through contract labor that is: (1) perennial and on a day-to-day basis, (2) incidental but necessary to the core activity, (3) sufficient enough to permit the employment of a considerable number of regular and full-time workforce, and (4) being carried out mostly in similar establishments through regular workers. In my opinion, when the erection of a particular machinery, due to its enormity or sophistication, is inextricably linked to its sale or supply, it cannot be brought within the above parameters.
From India, Salem
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Hi Varghese,
Unfortunately, I do not have a copy of the judgment yet. This is the article that appeared in TOI about the same:
Liability of employee is on principal employer: HC - The Times of India
From India, Mumbai
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Unfortunately, I do not have a copy of the judgment yet. This is the article that appeared in TOI about the same:
Liability of employee is on principal employer: HC - The Times of India
From India, Mumbai
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Banerjee,
If you read the article, you can understand that the case was not under the CLRA Act. Instead, it was an appeal by the insurance company against the order of the EC commissioner awarding compensation to the driver employed by the contractor. The court observed, "It was not proved that due to any terms of the contract between the parties, the liability is on the contractor (MGM Motors)."
Please read section 12 of the EC Act. This decision of the Bombay High Court is of no use for our topic of discussion.
Varghese Mathew
From India, Thiruvananthapuram
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If you read the article, you can understand that the case was not under the CLRA Act. Instead, it was an appeal by the insurance company against the order of the EC commissioner awarding compensation to the driver employed by the contractor. The court observed, "It was not proved that due to any terms of the contract between the parties, the liability is on the contractor (MGM Motors)."
Please read section 12 of the EC Act. This decision of the Bombay High Court is of no use for our topic of discussion.
Varghese Mathew
From India, Thiruvananthapuram
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Well, from what I understand and what some of my lawyer friends have explained, the principles on which the court decided the case are very likely to be extended to CLRA as well. The insurance company had provided coverage for employees under the Workmen's Compensation Act. The court ruled that these contract workers are entitled to compensation from the insurance company, not under motor insurance but under the Workmen's Compensation Act.
I am waiting for someone to provide me with the full copy of the decision, and then I will share it here so we can analyze it together and figure out how it affects CLRA.
From India, Mumbai
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I am waiting for someone to provide me with the full copy of the decision, and then I will share it here so we can analyze it together and figure out how it affects CLRA.
From India, Mumbai
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Trimurti Group offers Contract Labour Act compliance consultancy services.
We provide the following services in compliance with the provisions of the Contract Labour (Regulation & Abolition) Act 1970:
Contract Labour Compliance for Employers (Companies) & Contractors:
1. Obtaining Registration of Principal Employer Establishment under the Contract Labour Act (Form-1)
2. Obtaining Labour License for Contractors from the Labour Commissioner (Form-6)
3. Amendments in Principal Employer Registration/Labour License
4. Obtaining Duplicated Copy of Certificate of Registration/Labour License
5. Renewal of Labour License from time to time from the Labour Commissioner
6. Preparation & Maintenance of Various registers as provided under the Contract Labour Act, including Register of Contractors, Register of Workmen Employed by Contractors, Register of Wages, Register of Overtime, Register of Fine, Register of Deductions, and Register of Advance.
7. Providing Assistance in Preparation & Maintenance of various Records like Wage slips, Muster Rolls as per the Contract Act
8. Assisting in Ensuring Compliance with the provisions of the Contract Labour Act related to Disclosure, Notices, Displays, Deductions, etc.
For inquiries, please contact:
Trimurti Group & Project Support Consultants
Email: info@trimurtigroup.co.in
Web: [link outdated-removed] ([Search On Cite](https://www.citehr.com/results.php?q=Domain%20Default%20page) | [Search On Google](https://www.google.com/search?q=Domain%20Default%20page))
Phone: 9423387048
From India, Pune
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We provide the following services in compliance with the provisions of the Contract Labour (Regulation & Abolition) Act 1970:
Contract Labour Compliance for Employers (Companies) & Contractors:
1. Obtaining Registration of Principal Employer Establishment under the Contract Labour Act (Form-1)
2. Obtaining Labour License for Contractors from the Labour Commissioner (Form-6)
3. Amendments in Principal Employer Registration/Labour License
4. Obtaining Duplicated Copy of Certificate of Registration/Labour License
5. Renewal of Labour License from time to time from the Labour Commissioner
6. Preparation & Maintenance of Various registers as provided under the Contract Labour Act, including Register of Contractors, Register of Workmen Employed by Contractors, Register of Wages, Register of Overtime, Register of Fine, Register of Deductions, and Register of Advance.
7. Providing Assistance in Preparation & Maintenance of various Records like Wage slips, Muster Rolls as per the Contract Act
8. Assisting in Ensuring Compliance with the provisions of the Contract Labour Act related to Disclosure, Notices, Displays, Deductions, etc.
For inquiries, please contact:
Trimurti Group & Project Support Consultants
Email: info@trimurtigroup.co.in
Web: [link outdated-removed] ([Search On Cite](https://www.citehr.com/results.php?q=Domain%20Default%20page) | [Search On Google](https://www.google.com/search?q=Domain%20Default%20page))
Phone: 9423387048
From India, Pune
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