You have issued 3 Form V for the same contractor. In each of the Form V, you have stated that the contractor has only 19 workers deployed in your factory. That is definitely falsification of records and, in effect, a fraudulent activity. A complaint by any worker will bring the entire government machinery on you like a ton of bricks. Your RLC would not have given you the ruling in writing.


From India, Mumbai
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The Act, Rules, and Regulations are made for the benefit of the public in general, be it industry or factory, etc. The applicable act should be followed strictly by the industries as stipulated and should not be interpreted or misrepresented. This is not prepared for any one industry or factory. If there is any lapse in implementing the same, every act and rule has a penal clause as well. The law cannot be twisted as per individual requirements.

Our friend Mr. Madhu has given his opinion elaborately on this subject thread. Thanks to him.

Adoni Suguresh Labour Laws Consultant

From India, Bidar
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Thanks to all. Yes, we are registered under the CL Act. In the Register of Contractors (Form-12), we mention the name of the contractor, his work period, and the maximum number of labor deployed. It is possible that the same contractor name is found in the register with the same or different work period. Madhu sir is right in this regard. Since the nature of the job is different, we see no wrong, and RLC has also inspected this without any comments.
From India, Pune
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In spite of what the RLC has said, you are going to get into trouble for allowing a contractor to have more than 20 workers to work without a license. The law requires a license for each contractor, not for each contract or activity.


From India, Mumbai
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I hasten to add that the process of verification of all records of the contractors' compliance with statutory obligation should be followed before payment of his each monthly bill. A. S. Bhat
From India, Pune
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Thanks to all once again. I want elaboration on Mr. Banarjee’s thread that " The law requires license for each contractor not for each contract or activity".
From India, Pune
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Please refer to section 1 of the act. It very clearly states that the act applies to all contractors who have 20 or more contract workers. There is no stretch of imagination by which it can be said that it will only apply to each different activity in the same factory.
From India, Mumbai
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Mr. S. Banerjee has given his valuable opinion on your query in the thread by interacting with the posts step by step regarding your contractor's license. Other members have also elaborated on their opinions in the thread. I hope that with this, you now understand your query without any further interpretation on the law.

Adoni Suguresh
Labour Laws Consultant

From India, Bidar
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Hi, I am 9 months old in the HR field. Can you give me valuable advice regarding my query? It has been observed that one of the field employees is very lethargic and is not reporting properly. The manager has given him several warnings, but it is of no use. The employee has given two apologies from his side, stating that he will improve. He is a non-confirmed employee. Can we terminate him?
From India, Mumbai
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