Dear Mr. Nilesh,
According to my knowledge, a Contract license is given for a specific industry for a specific purpose, wherein the Principal employer has to give a declaration in Form V. Therefore, there can be many licenses for one contractor.
We are also in the contracting business. When we canceled a contract with one company and entered into a contract with their sister concern, we had to cancel the old license and get a new one, as changing the name or adding new parties on one license is not allowed.
Therefore, if you are not providing more than 20 persons in one organization, you need not take any license.
With warm regards,
Nitin Tadvalkar
From India, Pune
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1According to my knowledge, a Contract license is given for a specific industry for a specific purpose, wherein the Principal employer has to give a declaration in Form V. Therefore, there can be many licenses for one contractor.
We are also in the contracting business. When we canceled a contract with one company and entered into a contract with their sister concern, we had to cancel the old license and get a new one, as changing the name or adding new parties on one license is not allowed.
Therefore, if you are not providing more than 20 persons in one organization, you need not take any license.
With warm regards,
Nitin Tadvalkar
From India, Pune
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That statement does not match up with what I am reading in the act. The act says every contractor who has 20 or more employees needs to have a license. So if he has fewer than 20 in one location but more in others, it will need a license for every location.
From India, Mumbai
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From India, Mumbai
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Dear Mr. S. Banerjee,
I went to the Labour Commissioner's office and was informed that a general license cannot be given, as the license requires Form V from the Principal Employer. In case there are fewer than 20 employees with any client, they will not provide Form V, and therefore, the license cannot be obtained. Additionally, as I mentioned earlier, the license is specific to the industry and cannot be a general license.
This is the situation in Maharashtra. There may be different rules in other states, but I doubt it very much.
From India, Pune
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I went to the Labour Commissioner's office and was informed that a general license cannot be given, as the license requires Form V from the Principal Employer. In case there are fewer than 20 employees with any client, they will not provide Form V, and therefore, the license cannot be obtained. Additionally, as I mentioned earlier, the license is specific to the industry and cannot be a general license.
This is the situation in Maharashtra. There may be different rules in other states, but I doubt it very much.
From India, Pune
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Dear Mr. Nitin Ji,
You are right, for contracting agencies, the principal employer has to issue Form V and a copy of the agreement to procure a license for the people deployed at a specific site for working. It is also true that for any business entity where the employees are more than 20 on their payroll, the company has to obtain a license as well, for which Form V will not be required.
Thanks and regards,
B K Majumdar
From India, Vadodara
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You are right, for contracting agencies, the principal employer has to issue Form V and a copy of the agreement to procure a license for the people deployed at a specific site for working. It is also true that for any business entity where the employees are more than 20 on their payroll, the company has to obtain a license as well, for which Form V will not be required.
Thanks and regards,
B K Majumdar
From India, Vadodara
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Contract Labor - PPT.ppt
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