Dear All,
RNSwamy
From India, Mumbai
4Under Contract Labour (Regulation&Abolition) Act, applies every establishment in which twenty or more work men are employed on any day of the proceeding tweleve months as contract labour.
We have 9 establishment under one umbralla, now my query is one contactor is supplying 5 contract labour to each establishmnent and total comes 45 contract labour. Kindly let us know whether the aforesaid act is applicable to the above contractor.
Regards,We have 9 establishment under one umbralla, now my query is one contactor is supplying 5 contract labour to each establishmnent and total comes 45 contract labour. Kindly let us know whether the aforesaid act is applicable to the above contractor.
RNSwamy
From India, Mumbai
Dear R N Swami,
If all the nine establishment are having their separate entity & are separately registered under either State Shops Act or factories Act, 1948 then in my opinion he is not required to have any licence under this C L (R&A) Act, 1970.
With Regards,
R.N.Khola
From India, Delhi
If all the nine establishment are having their separate entity & are separately registered under either State Shops Act or factories Act, 1948 then in my opinion he is not required to have any licence under this C L (R&A) Act, 1970.
With Regards,
R.N.Khola
From India, Delhi
Dear Mr. Narayan Swamy Contention of Mr. R N Khola is right. But as a pricnipal employer you need to register your establishment with the Labour Deptt for engaging contrator. Thanks
From India, Mumbai
From India, Mumbai
Dear Mr. Khola, I have a query. If we would like to have a housekeeping on contract, what all compliances we need to take care of. Thanks for your help, Raman
From India, Gurgaon
From India, Gurgaon
Dear Sir
Please see section 1(4)(b) of the Contract Labour Act. According to this section the Act applies to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen. So the Act applies to the contractor if employs 20 or more workmen. In the case referred to by Mr.Narayanaswamy, the contractor having employed 45 workers, is covered by the CLR Act. The section 1(4)(a) uses the word "establishment" while section 1(4(b) uses the word "contractor".
From India, Madras
Please see section 1(4)(b) of the Contract Labour Act. According to this section the Act applies to every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen. So the Act applies to the contractor if employs 20 or more workmen. In the case referred to by Mr.Narayanaswamy, the contractor having employed 45 workers, is covered by the CLR Act. The section 1(4)(a) uses the word "establishment" while section 1(4(b) uses the word "contractor".
From India, Madras
If the nine separate establishments are controlled by the same management/ broad of directors, then it will be easy for the authorities to prove that there exists functional integrality or dependency among each unit which will, in turn, lead to clubbing of units for deciding coverage of EPF Act, ESI Act and similar other Labour Acts. Viewed from that perspective, even if the units have different factory/ shop registrations, the CLRA Act provisions will be applicable to you.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear Sir
It makes no difference even if the nine employers are owned by different legal entitities. If the contractor who supplies workmen to these different nine employers, whether the nine employers are under the same umbrella or not, whether the nine employers are different entities are not, the contractor, having employed more than twenty workmen in the case referred to by Mr.Narayana Swamy, is bound to take out a license. Section 1(4)((b) makes the CLR and A Act applicable to every contractor who employs twenty or more workers. According to section 12(1) of the CLRand A Act, it is the legal obligation of a contractor who employs twenty or more workers to take out a license. In this case as in any case where there is engagement of contract labour, the employer of the contract worker is the contractor and not the principal employer. It may be that all the contract workers employed by the individual contractor are not working in the same location, but still they continue to be the employees of that particular contractor irrespective of their location/place of employment.
From India, Madras
It makes no difference even if the nine employers are owned by different legal entitities. If the contractor who supplies workmen to these different nine employers, whether the nine employers are under the same umbrella or not, whether the nine employers are different entities are not, the contractor, having employed more than twenty workmen in the case referred to by Mr.Narayana Swamy, is bound to take out a license. Section 1(4)((b) makes the CLR and A Act applicable to every contractor who employs twenty or more workers. According to section 12(1) of the CLRand A Act, it is the legal obligation of a contractor who employs twenty or more workers to take out a license. In this case as in any case where there is engagement of contract labour, the employer of the contract worker is the contractor and not the principal employer. It may be that all the contract workers employed by the individual contractor are not working in the same location, but still they continue to be the employees of that particular contractor irrespective of their location/place of employment.
From India, Madras
Yes,I understand. But my post was to say that if the nine establishments are working under the same umbrella, then registration as is required to be taken by the Principal Employer for engaging contract labour will have to be taken by the employer. If these nine units have separate functional identity, then each unit may not be required to take separate registration under the CLRA Act. On the other hand, if functional integrality is proved, all the nine units could be clubbed together, following which the requirement of taking registration will be applicable to the unit.
For the purpose of Provident Fund and ESI coverage, it is very common that the authorities club the units. In the similar way is it not possible in the case of Contract labour also?
Regards,
Madhu.T.K
From India, Kannur
For the purpose of Provident Fund and ESI coverage, it is very common that the authorities club the units. In the similar way is it not possible in the case of Contract labour also?
Regards,
Madhu.T.K
From India, Kannur
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Contract Labour Act.zip
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