Dear Sir,
In the event that a job contract for fabrication and erection is awarded to a vendor/contractor, and the contractor obtains a labor license as they are likely to employ more than 20 workers, what would be the requirement for labor licenses for the two sub-contractors if the contractor subcontracts the job to them and each sub-contractor employs 10 laborers? Is it necessary to ensure that the sub-contractors engage fewer than 20 laborers?
Regards,
DG
From India, Delhi
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4In the event that a job contract for fabrication and erection is awarded to a vendor/contractor, and the contractor obtains a labor license as they are likely to employ more than 20 workers, what would be the requirement for labor licenses for the two sub-contractors if the contractor subcontracts the job to them and each sub-contractor employs 10 laborers? Is it necessary to ensure that the sub-contractors engage fewer than 20 laborers?
Regards,
DG
From India, Delhi
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Hi,
The Contract Labour Act of 1970 states that 20 or more individuals should produce a labor license. A contractor should have a license if they take on subcontracts of 10 or more. Even if the subcontractors amount to 20 under a single contract, the main contractor is the one required to show the license, not the subcontractor.
When a contract is given to a contractor and then that contractor further assigns the work to another contractor on behalf of the main contractor, it is termed a subcontract. Therefore, the contractor is essential, and they must possess licenses such as PF, ESI, and service tax numbers.
Regards
From India, Hyderabad
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The Contract Labour Act of 1970 states that 20 or more individuals should produce a labor license. A contractor should have a license if they take on subcontracts of 10 or more. Even if the subcontractors amount to 20 under a single contract, the main contractor is the one required to show the license, not the subcontractor.
When a contract is given to a contractor and then that contractor further assigns the work to another contractor on behalf of the main contractor, it is termed a subcontract. Therefore, the contractor is essential, and they must possess licenses such as PF, ESI, and service tax numbers.
Regards
From India, Hyderabad
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