Hi all,
I have one query related to contract labor. The current scenario is as follows: a Residential Building Housing Society wants to repair small damages and paint the building. The committed members have hired a job contractor to carry out the work. The contractor has engaged laborers to handle the repairs and painting of the old residential building.
Is the Contract Labor (P&A) Act, 1970 applicable to the Housing Society? Can the Housing Society be considered a Principal Employer?
Please reply.
With regards,
Avinash K.
From India, Mumbai
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66I have one query related to contract labor. The current scenario is as follows: a Residential Building Housing Society wants to repair small damages and paint the building. The committed members have hired a job contractor to carry out the work. The contractor has engaged laborers to handle the repairs and painting of the old residential building.
Is the Contract Labor (P&A) Act, 1970 applicable to the Housing Society? Can the Housing Society be considered a Principal Employer?
Please reply.
With regards,
Avinash K.
From India, Mumbai
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Dear Avinash, Yes, if you have any doubts on the above said subject you may approach me 9866917232 Laxmi
From India, Hyderabad
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From India, Hyderabad
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How many laborers has the contractor engaged? The applicability depends on the above question. If the labor strength is less than 20, then you need not worry. In some states, the strength must be within 10.
From India, Kumbakonam
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From India, Kumbakonam
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Hi all,
The workforce varies from time to time. When repair work is ongoing, it will require around 15-18 laborers, whereas for painting, approximately 16 laborers will be needed.
Regards,
Avinash K.
From India, Mumbai
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The workforce varies from time to time. When repair work is ongoing, it will require around 15-18 laborers, whereas for painting, approximately 16 laborers will be needed.
Regards,
Avinash K.
From India, Mumbai
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If you do the same in a phased manner, i.e., first carrying out repair work with 15 to 18 laborers and then, upon completion of the repair work, painting work, you do not need to obtain any license. However, if you undertake the work all at once, then you must obtain a registration certificate under the CL Act, and the contractors you engage must acquire the necessary licenses.
From India, Kumbakonam
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From India, Kumbakonam
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Hi Bhaskar,
Thank you for your reply.
My point is that the Housing Society is solely used for residential purposes. It is not involved in any commercial or manufacturing activities. Therefore, how could the Contract Labour Regulation and Abolition Act (CLRA) be applicable?
Regards,
From India, Mumbai
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Thank you for your reply.
My point is that the Housing Society is solely used for residential purposes. It is not involved in any commercial or manufacturing activities. Therefore, how could the Contract Labour Regulation and Abolition Act (CLRA) be applicable?
Regards,
From India, Mumbai
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Dear Avinash,
If a person is injured in an accident while performing repair or painting work, will the WC Act exclude the owner of the house from paying compensation? There are exemptions for the BOCW Act, but there is no exemption for the CLRA. If you engage any contract labor, you must obtain registration under the CL Act. If the workforce exceeds 20, contractors must apply for a license under the CL Act.
If the total cost is less than Rs. 10 Lakhs, you do not need to apply for BOCW Act registration.
From India, Kumbakonam
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If a person is injured in an accident while performing repair or painting work, will the WC Act exclude the owner of the house from paying compensation? There are exemptions for the BOCW Act, but there is no exemption for the CLRA. If you engage any contract labor, you must obtain registration under the CL Act. If the workforce exceeds 20, contractors must apply for a license under the CL Act.
If the total cost is less than Rs. 10 Lakhs, you do not need to apply for BOCW Act registration.
From India, Kumbakonam
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Dear Mr. Akatrap,
According to section 1(4)(a) of the Contract Labour (Regulation and Abolition) Act, this law applies to every "establishment" in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour. Therefore, for the CLRA Act to be applicable to the Housing Society, the society should be an "establishment" referred to in section 1(4)(a) and defined in section 2(e) of the CLRA Act.
According to section 2(e)(i), any office or department of the Government or a local authority is an establishment under this Act. This clause is not applicable to the Housing Society referred to by you. Further, Section 2(e)(ii) states that "establishment" means any place where any industry, trade, business, manufacture, or occupation is carried on. Your post does not indicate whether any industry, trade, business, or manufacture or occupation is carried on by the Housing Society referred to by you.
If your Housing Society does not carry on any industry, trade, business, or manufacture or occupation, then it is not an "establishment" as defined in section 2(e)(ii) of the CLRA Act and therefore need not take out a registration under the CLRA Act if contract labour is employed. You may refer to the judgment in the case Powar vs Labour Enforcement Officer (C) reported in 1993(66) FLR 833 (Kerala) = 1993 I LLJ 521 wherein it was held that the residential quarters of a Bank are not an "establishment" as defined under the CLRA Act and therefore the CLRA Act does not apply.
With regards
From India, Madras
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According to section 1(4)(a) of the Contract Labour (Regulation and Abolition) Act, this law applies to every "establishment" in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour. Therefore, for the CLRA Act to be applicable to the Housing Society, the society should be an "establishment" referred to in section 1(4)(a) and defined in section 2(e) of the CLRA Act.
According to section 2(e)(i), any office or department of the Government or a local authority is an establishment under this Act. This clause is not applicable to the Housing Society referred to by you. Further, Section 2(e)(ii) states that "establishment" means any place where any industry, trade, business, manufacture, or occupation is carried on. Your post does not indicate whether any industry, trade, business, or manufacture or occupation is carried on by the Housing Society referred to by you.
If your Housing Society does not carry on any industry, trade, business, or manufacture or occupation, then it is not an "establishment" as defined in section 2(e)(ii) of the CLRA Act and therefore need not take out a registration under the CLRA Act if contract labour is employed. You may refer to the judgment in the case Powar vs Labour Enforcement Officer (C) reported in 1993(66) FLR 833 (Kerala) = 1993 I LLJ 521 wherein it was held that the residential quarters of a Bank are not an "establishment" as defined under the CLRA Act and therefore the CLRA Act does not apply.
With regards
From India, Madras
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Hi Harikrishnan Sir,
As I said, it is purely a residential building. The residents have formed the Housing Society. Over the period of time, maintenance issues have come up, and hence the housing society has decided to carry out maintenance and painting of the building.
Regards,
From India, Mumbai
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As I said, it is purely a residential building. The residents have formed the Housing Society. Over the period of time, maintenance issues have come up, and hence the housing society has decided to carry out maintenance and painting of the building.
Regards,
From India, Mumbai
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Dear Mr. Avinash,
If, as you have said, the building is purely a residential building and the Housing Society is not carrying on any industry, etc., then the CLRA Act is not applicable. Therefore, the Society need not get a registration under the CLRA Act as Principal Employer, even if more than 20 contract workers are employed. However, the Housing Society will be liable to pay compensation under the Employees' Compensation Act (formerly Workmen's Compensation Act) if the workers engaged for maintenance/repairs are injured or lose their lives as a result of an accident arising out of and in the course of their employment. The applicability of the Employees' Compensation Act is subject to the condition that the ESI Act is not applicable. The circumstances/conditions under which the Employees' Compensation Act is applicable to a particular employment/employer and worker are different from the circumstances/conditions under which the Contract Labour Act or the BOCW Act is applicable to an employer/worker.
With regards,
From India, Madras
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If, as you have said, the building is purely a residential building and the Housing Society is not carrying on any industry, etc., then the CLRA Act is not applicable. Therefore, the Society need not get a registration under the CLRA Act as Principal Employer, even if more than 20 contract workers are employed. However, the Housing Society will be liable to pay compensation under the Employees' Compensation Act (formerly Workmen's Compensation Act) if the workers engaged for maintenance/repairs are injured or lose their lives as a result of an accident arising out of and in the course of their employment. The applicability of the Employees' Compensation Act is subject to the condition that the ESI Act is not applicable. The circumstances/conditions under which the Employees' Compensation Act is applicable to a particular employment/employer and worker are different from the circumstances/conditions under which the Contract Labour Act or the BOCW Act is applicable to an employer/worker.
With regards,
From India, Madras
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