Hai every one...........
Any one plz reply..........
I am working in a company where we employ contract labour from 2 contractors.
Contractor A-12 labour
Contractor B-11 labour.
Contracto A has in total 45 contract labour(including our company).
Contractor A has not obtained Form IV.When we are asking to provide that, he is saying that as he is providing less than 20 labour to our company he is not bound to apply for Form IV under the act.
Is he correct in his opinion?
Also clarify me when a contractor has to apply and the limit in respect of labour for applying for Form IV.
Is he required to file Form IV seperatly for each of the establishment he is providing the labour?
What is the case if labour supplied falls below 20 to each company?
Plz reply me back fast..........
Awaiting your reply...........
From India, Secunderabad
2Any one plz reply..........
I am working in a company where we employ contract labour from 2 contractors.
Contractor A-12 labour
Contractor B-11 labour.
Contracto A has in total 45 contract labour(including our company).
Contractor A has not obtained Form IV.When we are asking to provide that, he is saying that as he is providing less than 20 labour to our company he is not bound to apply for Form IV under the act.
Is he correct in his opinion?
Also clarify me when a contractor has to apply and the limit in respect of labour for applying for Form IV.
Is he required to file Form IV seperatly for each of the establishment he is providing the labour?
What is the case if labour supplied falls below 20 to each company?
Plz reply me back fast..........
Awaiting your reply...........
From India, Secunderabad
In the present case none of your contractors needs to take licence. At the same time you are bound to take registration under the CLRA Act. Registration under the CLRA Act is required for the Principal employer if he engages 20 or more labourers through contractors. Since you have engaged 33 labourers through (two) contractors you need registration.
Licence under Contract Labour (Regulation and Abolition) Act is required for a contractor who places at least 20 employees in one establishment. Since Contractor A has engaged only 12 or Contractor B has engaged only 11 persons, none is under any statutory obligation to apply for Licence.
Licence is principal employer specific and is obtained only if applied in form IV along with a certificate from the Principal employer in form V which states that he has been appointed as contractor for engaging contract workers. Therefore, a contractor has to take separate licences for separate principal employers.
Madhu.T.K
From India, Kannur
Licence under Contract Labour (Regulation and Abolition) Act is required for a contractor who places at least 20 employees in one establishment. Since Contractor A has engaged only 12 or Contractor B has engaged only 11 persons, none is under any statutory obligation to apply for Licence.
Licence is principal employer specific and is obtained only if applied in form IV along with a certificate from the Principal employer in form V which states that he has been appointed as contractor for engaging contract workers. Therefore, a contractor has to take separate licences for separate principal employers.
Madhu.T.K
From India, Kannur
Dear Sir,
I am really glad for your reply.
This is the answer provided by a senior person on other website.
Both your views and his views are divergent in this respect.
So,can u please go through the answer given by him and provide your guidance in this regard.
According to section 1(4)(b) of the Contract Labour(Regulation and Abolition) Act 1970, this Act is applicable to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.
According to section 12 of the Contract Labour(Regulation and Abolition) Act every contractor to whom the Act applies can undertake or execute any work through contract except under and in accordance with a license issued in that behalf by the licensing officer.
If the above two sections are read together it would be seen that these two sections do not refer to the "Principal Employer". Further, if the contractor employs 20 or more workers, he has to take out a license. The Act does not say that only if the same contractor undertakes to supply 20 or more contract worker to a single principal employer, the contractor has to take out a license.The grammatical interpretation of section 1(4)(b) read with section 12 is that if the contractor supplies less than 20 contract workers to individual principal employers but on the whole he is supplying 20 or more contract workers to more than one principal employer then he should take out a license under the Contract Labour(Regulation and Abolition) Act.
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From India, Secunderabad
I am really glad for your reply.
This is the answer provided by a senior person on other website.
Both your views and his views are divergent in this respect.
So,can u please go through the answer given by him and provide your guidance in this regard.
According to section 1(4)(b) of the Contract Labour(Regulation and Abolition) Act 1970, this Act is applicable to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.
According to section 12 of the Contract Labour(Regulation and Abolition) Act every contractor to whom the Act applies can undertake or execute any work through contract except under and in accordance with a license issued in that behalf by the licensing officer.
If the above two sections are read together it would be seen that these two sections do not refer to the "Principal Employer". Further, if the contractor employs 20 or more workers, he has to take out a license. The Act does not say that only if the same contractor undertakes to supply 20 or more contract worker to a single principal employer, the contractor has to take out a license.The grammatical interpretation of section 1(4)(b) read with section 12 is that if the contractor supplies less than 20 contract workers to individual principal employers but on the whole he is supplying 20 or more contract workers to more than one principal employer then he should take out a license under the Contract Labour(Regulation and Abolition) Act.
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From India, Secunderabad
I would prefer to take you to the same sections along with the relevant Rules framed in which it is said that application for licence (licence is for the contractor whereas the Principal employer is expected to take Registration and not licence) is issued subject to Principal employer issuing form V to the contractor. Form V is an undertaking by the Principal employer declaring that so an so person (contractor) has been appointed by him.
A contractor like any other person can employ any number of persons and until and unless any of these is engaged for another employer (principal employer) the question of CLRA does not arise. Now, when his employees work FOR ANOTHER only the issue of contract labour arises and it is from this act of letting his employees for that another person (Principal employer) that he becomes an intermediate employer. Section 1(4)(a) states that the CLRA Act applies to establishments which engages 20 or more contract workers and section 1(4)(b) states that it applies to every " CONTRACTOR" who employs 20 or more.....Now see the definition of contractor as given in section 2 (c) which says among others one who supplies labour for the establishment.
If contractor is one who supplies manpower, the engagement of manpower at the principal employer's place is the main factor which decides contract and in this exercise the number of employees employed by him for working for him and not for another person is immaterial. This is the interpretation I could draw from the Act.
Madhu.T.K
From India, Kannur
A contractor like any other person can employ any number of persons and until and unless any of these is engaged for another employer (principal employer) the question of CLRA does not arise. Now, when his employees work FOR ANOTHER only the issue of contract labour arises and it is from this act of letting his employees for that another person (Principal employer) that he becomes an intermediate employer. Section 1(4)(a) states that the CLRA Act applies to establishments which engages 20 or more contract workers and section 1(4)(b) states that it applies to every " CONTRACTOR" who employs 20 or more.....Now see the definition of contractor as given in section 2 (c) which says among others one who supplies labour for the establishment.
If contractor is one who supplies manpower, the engagement of manpower at the principal employer's place is the main factor which decides contract and in this exercise the number of employees employed by him for working for him and not for another person is immaterial. This is the interpretation I could draw from the Act.
Madhu.T.K
From India, Kannur
Thank you for your valuable interpretation and speedy reply................
Cau you please draw a conclusion for this case............
Is Contractor A bound to apply for Form IV?
Is there any limit for the number of labour under which he has to apply?
I mean as he has provided 12 labour is he required to apply for Form IV.
From India, Secunderabad
Cau you please draw a conclusion for this case............
Is Contractor A bound to apply for Form IV?
Is there any limit for the number of labour under which he has to apply?
I mean as he has provided 12 labour is he required to apply for Form IV.
From India, Secunderabad
I have already stated that the contractor is under no obligation to take licence but you have to Registration since you engage 20 or more from all the contractors taken together. Madhu.T.K
From India, Kannur
From India, Kannur
Dear Sir,
Condition for obtaining Labour License under C.L (R&A) Act,1970 & State Rules made thereunder is differ from state to state as in Gujarat, Labor License is applicable for engaging 10 or more contract labors.
Further, Labour License may be obtained by the respective contractor even if he engaged less than the prescribed limit provided the Principal Employer is having Registration under the said Act.
Regards
RKB
From India, Gandhidham
Condition for obtaining Labour License under C.L (R&A) Act,1970 & State Rules made thereunder is differ from state to state as in Gujarat, Labor License is applicable for engaging 10 or more contract labors.
Further, Labour License may be obtained by the respective contractor even if he engaged less than the prescribed limit provided the Principal Employer is having Registration under the said Act.
Regards
RKB
From India, Gandhidham
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