Hi All,
What kind of business organisations need to go in for a Labour Licence? What kind of manpower comes under the purview of the definition, 'labour'. Also, appreciate if you can elaborate as to what laws are applicable in general for a business with the title of a 'Pvt Ltd' organization.
Regards
From India, Hyderabad
3What kind of business organisations need to go in for a Labour Licence? What kind of manpower comes under the purview of the definition, 'labour'. Also, appreciate if you can elaborate as to what laws are applicable in general for a business with the title of a 'Pvt Ltd' organization.
Regards
From India, Hyderabad
Dear friend,
The suffix behind the name of any business venture such as " Pvt Ltd", " Public Ltd" etc., denotes the constitution/ type of the organization as incorporated under the Companies Act,1956. As such it has got an existence as a separate legal entity distinct from its investors. Therefore, it is a juristic person or artificial person in the eye of law subject to all legal rights and liabilities.
To me, your word " Labour Licence " is a bit vague. Licence is a wider term indicating a permit issued by a Statutory Authority to own or use something, to do something or to carry on a trade. Employment or labour in any activity, in general, would be called as such when people are hired for wages or reward or compensation in consideration of the services rendered by them. So, the question of licensing in respect of employment of labour is dependent on factors like the nature of activity carried on, the type of the establishment,the number of people employed, the duration of employment. For example the contract labour system prevalent in all industrial establishments, Employment of interstate migrant workmen in industrial establishments, the building and other construction activities, factories, motor transport undertakings, shops and other establishments etc.
The terms "workman", "worker", "employee" are used in Labour Laws depending upon their respective purposes for the generic term " labour", if I were correct. However, my suggestion to you to appreciate and understand the inherent differences between such terms would be referring to the concerned definition clauses of the terms used as such in the Employees Compensation Act,1923, The Industrial Employment (Standing Orders) Act,1946,The Industrial Disputes Act, 1947, The Factories Act,1948, The EPF Act,1952, The Payment of Bonus Act,1965, The Payment of Gratuity Act,1972, various States Shops and Establishments Acts.
From India, Salem
The suffix behind the name of any business venture such as " Pvt Ltd", " Public Ltd" etc., denotes the constitution/ type of the organization as incorporated under the Companies Act,1956. As such it has got an existence as a separate legal entity distinct from its investors. Therefore, it is a juristic person or artificial person in the eye of law subject to all legal rights and liabilities.
To me, your word " Labour Licence " is a bit vague. Licence is a wider term indicating a permit issued by a Statutory Authority to own or use something, to do something or to carry on a trade. Employment or labour in any activity, in general, would be called as such when people are hired for wages or reward or compensation in consideration of the services rendered by them. So, the question of licensing in respect of employment of labour is dependent on factors like the nature of activity carried on, the type of the establishment,the number of people employed, the duration of employment. For example the contract labour system prevalent in all industrial establishments, Employment of interstate migrant workmen in industrial establishments, the building and other construction activities, factories, motor transport undertakings, shops and other establishments etc.
The terms "workman", "worker", "employee" are used in Labour Laws depending upon their respective purposes for the generic term " labour", if I were correct. However, my suggestion to you to appreciate and understand the inherent differences between such terms would be referring to the concerned definition clauses of the terms used as such in the Employees Compensation Act,1923, The Industrial Employment (Standing Orders) Act,1946,The Industrial Disputes Act, 1947, The Factories Act,1948, The EPF Act,1952, The Payment of Bonus Act,1965, The Payment of Gratuity Act,1972, various States Shops and Establishments Acts.
From India, Salem
Thanks for the response, Mr Umakanthan.
I understand my question is too general. To be more specific, this is relating a Company with a workforce of 100+ registered under the STPI Act and the Companies Act. Recently someone suggested we need to have a Labour Licence too.
I wanted to understand whether it is mandatory. Would the employees working here come within the definition of 'Labour' as required for the Labour Licence.
Would appreciate if you could share your mail ID.
Thanks & Regards
From India, Hyderabad
I understand my question is too general. To be more specific, this is relating a Company with a workforce of 100+ registered under the STPI Act and the Companies Act. Recently someone suggested we need to have a Labour Licence too.
I wanted to understand whether it is mandatory. Would the employees working here come within the definition of 'Labour' as required for the Labour Licence.
Would appreciate if you could share your mail ID.
Thanks & Regards
From India, Hyderabad
Dear Lexalumnus,
The concept of registration under any Labour Law like that of establishment-oriented laws like the Factories Act, Shops and Establishment Acts etc or employment -nature- related laws like the CLRA Act,1970, the BOCW Act,1996 etc., is based on the effective regulation of the conditions of labour and ensuring certain welfare amenities, health and safety in view of the peculiar or special nature the employments. If your establishment or pattern of its employment falls within the purview of any such Labour Legislation having specific provision for registration, it is mandatory that you should abide by that. Your registration under the STPI Rules or the Companies Act has no relevance at all in the matter of registration under the Labour Laws applicable to both your establishment and the employees/workmen employed therein since the purposes of registration under the former are totally different.
Since the IT and ITES Establishments are covered by the respective State's Shops and Establishments Act, the employees are called " Persons Employed" for the purpose of the Act and not as "labour" as in the conventional or colloquial sense. At the same time, they are " workmen" for the purpose of the Industrial Disputes Act,1947 and the Trade Unions Act,1926, "employees" for the purpose of the Payment of Gratuity Act,1972 for instance. It is not the nomenclature of the designation nor the salary paid or the essential academic qualification determines the nature or status of employment of a hired person. There are other predominent parameters like control, supervision, empowerment or authority to take independent decisions on behalf of the employer in matters like hiring and firing of people. In so far as your IT industry is concerned, quantum of compensation, fancy designations like consultant, team lead, executive, software engineer, architect etc., are deceptive parameters to determine the concerned persons status of employment.
From India, Salem
The concept of registration under any Labour Law like that of establishment-oriented laws like the Factories Act, Shops and Establishment Acts etc or employment -nature- related laws like the CLRA Act,1970, the BOCW Act,1996 etc., is based on the effective regulation of the conditions of labour and ensuring certain welfare amenities, health and safety in view of the peculiar or special nature the employments. If your establishment or pattern of its employment falls within the purview of any such Labour Legislation having specific provision for registration, it is mandatory that you should abide by that. Your registration under the STPI Rules or the Companies Act has no relevance at all in the matter of registration under the Labour Laws applicable to both your establishment and the employees/workmen employed therein since the purposes of registration under the former are totally different.
Since the IT and ITES Establishments are covered by the respective State's Shops and Establishments Act, the employees are called " Persons Employed" for the purpose of the Act and not as "labour" as in the conventional or colloquial sense. At the same time, they are " workmen" for the purpose of the Industrial Disputes Act,1947 and the Trade Unions Act,1926, "employees" for the purpose of the Payment of Gratuity Act,1972 for instance. It is not the nomenclature of the designation nor the salary paid or the essential academic qualification determines the nature or status of employment of a hired person. There are other predominent parameters like control, supervision, empowerment or authority to take independent decisions on behalf of the employer in matters like hiring and firing of people. In so far as your IT industry is concerned, quantum of compensation, fancy designations like consultant, team lead, executive, software engineer, architect etc., are deceptive parameters to determine the concerned persons status of employment.
From India, Salem
Dear Lexalumnus,
Though Umakanth sir has given a detailed explanation of your query (which seems to be a general).
If it is somewhere specific or related to you than you should give more detail like Nature of your business, Any Contract, Location / Site etc.
I m considering it as a general query related to Labour Licence.
Labour Licence is being issued by the Deputy Labour Commissioner of the area under “The Contract Labour (R&A) Act, 1970”.
If any business entity (be it Proprietorship, Partnership, HUF, Co. etc) deploy 20 or more contractual labour/personnel at a particular site / location / agreement. Than the entity need to obtain Labour Licence agst the deployment.
There are further many laws, rules, documentation which also need to be comply.
Hope this will help you to clarify your query.
Fellow members can correct me or put more light on the subject.
From India, Delhi
Though Umakanth sir has given a detailed explanation of your query (which seems to be a general).
If it is somewhere specific or related to you than you should give more detail like Nature of your business, Any Contract, Location / Site etc.
I m considering it as a general query related to Labour Licence.
Labour Licence is being issued by the Deputy Labour Commissioner of the area under “The Contract Labour (R&A) Act, 1970”.
If any business entity (be it Proprietorship, Partnership, HUF, Co. etc) deploy 20 or more contractual labour/personnel at a particular site / location / agreement. Than the entity need to obtain Labour Licence agst the deployment.
There are further many laws, rules, documentation which also need to be comply.
Hope this will help you to clarify your query.
Fellow members can correct me or put more light on the subject.
From India, Delhi
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