Dear Seniors Our company take a contract with hospital in Chennai to run mess inside the hospital, now I want to know is CLRA license is mandatory for us or not?
From India, Mohali
From India, Mohali
Hi Neeraj,
The Contract Labour (Regulation and Abolition) Act, 1970, commonly known as the CLRA, is a crucial piece of legislation that governs the employment of contract workers in India. When a company takes on a contract to provide services within an establishment, the applicability of the CLRA must be carefully examined.
In the case of your company's contract to run the mess inside a hospital in Chennai, the CLRA license may indeed be a mandatory requirement. The CLRA applies to establishments that employ or have employed on any day of the preceding 12 months, 20 or more workmen as contract labor. Hospitals, being large-scale establishments, often fall under the purview of this Act.
Furthermore, the nature of the work involved in running a hospital mess is typically considered "perennial" in nature, meaning that it is an ongoing, regular activity rather than a temporary or casual one. This further strengthens the argument for the CLRA's applicability in your case.
Failure to obtain the necessary CLRA license can lead to significant legal and financial consequences for the contractor. The Act imposes penalties for non-compliance, including fines and potential imprisonment for the responsible persons. Additionally, the principal employer (in this case, the hospital) may also be held liable for any violations.
Therefore, it is strongly recommended that your company thoroughly review the CLRA requirements and ensure compliance before commencing the hospital mess operations in Chennai. Obtaining the CLRA license will not only ensure legal adherence but also demonstrate your commitment to providing quality services while protecting the rights and welfare of the contract workers employed in the hospital mess.
It is advisable to consult with legal experts who specialize in labor laws to gain a comprehensive understanding of the CLRA's requirements and the steps necessary to obtain the license. This proactive approach will help your company navigate the regulatory landscape and successfully fulfill the hospital's contract while avoiding any potential legal pitfalls.
Thanks
From India, Bangalore
163The Contract Labour (Regulation and Abolition) Act, 1970, commonly known as the CLRA, is a crucial piece of legislation that governs the employment of contract workers in India. When a company takes on a contract to provide services within an establishment, the applicability of the CLRA must be carefully examined.
In the case of your company's contract to run the mess inside a hospital in Chennai, the CLRA license may indeed be a mandatory requirement. The CLRA applies to establishments that employ or have employed on any day of the preceding 12 months, 20 or more workmen as contract labor. Hospitals, being large-scale establishments, often fall under the purview of this Act.
Furthermore, the nature of the work involved in running a hospital mess is typically considered "perennial" in nature, meaning that it is an ongoing, regular activity rather than a temporary or casual one. This further strengthens the argument for the CLRA's applicability in your case.
Failure to obtain the necessary CLRA license can lead to significant legal and financial consequences for the contractor. The Act imposes penalties for non-compliance, including fines and potential imprisonment for the responsible persons. Additionally, the principal employer (in this case, the hospital) may also be held liable for any violations.
Therefore, it is strongly recommended that your company thoroughly review the CLRA requirements and ensure compliance before commencing the hospital mess operations in Chennai. Obtaining the CLRA license will not only ensure legal adherence but also demonstrate your commitment to providing quality services while protecting the rights and welfare of the contract workers employed in the hospital mess.
It is advisable to consult with legal experts who specialize in labor laws to gain a comprehensive understanding of the CLRA's requirements and the steps necessary to obtain the license. This proactive approach will help your company navigate the regulatory landscape and successfully fulfill the hospital's contract while avoiding any potential legal pitfalls.
Thanks
From India, Bangalore
Dr. Raghunath as given a detailed answer above.
Basically, if you have 20 or more workers at that hospital, you will need to have Contract Labour License.
TN has a portal where you can register and then apply. It is at https://labour.tn.gov.in/services/Applicants/applicantRegistration
You will find a lot of details at https://dish.tn.gov.in/assets/pdf/ContractLabourAct1.pdf
From India, Mumbai
Basically, if you have 20 or more workers at that hospital, you will need to have Contract Labour License.
TN has a portal where you can register and then apply. It is at https://labour.tn.gov.in/services/Applicants/applicantRegistration
You will find a lot of details at https://dish.tn.gov.in/assets/pdf/ContractLabourAct1.pdf
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
CLRA Amendment 2018.pdf
Professional tax chennai.doc
FORM II for Renewal of License.jpg