We have labour license for 200 workers and engaged sub-contractor. They have taken labour license for 110. Whether the number of workers for principal employer should be counted as 200 of 310.
From India , Delhi
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From India , Delhi
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Dear Kumar,
The applicability of the CLRA Act, 1970 to the Principal Employer's establishment commences whenever the employment of 20 or more contract laborers takes place therein. The liabilities of the Principal Employer under the Act revolve around their one-time registration based solely on the application of the Act.
However, not only is the licensing of the contractor subject to amendment, but the registration of the Principal Employer is also subject to changes. This is because the fee for registration is based on the subsequent variation in the maximum number of contract laborers actually engaged by one or all the contractors in their respective contract works in the establishment as a whole.
From India, Salem
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6185The applicability of the CLRA Act, 1970 to the Principal Employer's establishment commences whenever the employment of 20 or more contract laborers takes place therein. The liabilities of the Principal Employer under the Act revolve around their one-time registration based solely on the application of the Act.
However, not only is the licensing of the contractor subject to amendment, but the registration of the Principal Employer is also subject to changes. This is because the fee for registration is based on the subsequent variation in the maximum number of contract laborers actually engaged by one or all the contractors in their respective contract works in the establishment as a whole.
From India, Salem
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Dear Kumar,
I do agree with the explanation of Mr. Umakanthan. The maximum strength is considered on the basis of registration taken by the principal employer. The total engagement of contract labour any day under contractor and subcontractor should not be more than the number for which PE obtained the registration.
Further, the strength of yours and subcontractor should no way exceed 200. There is no space for subcontractor under the statute. Rather, the subcontractor revolves around the PE and contractor. You have to check the nomenclature of Form V issued by the PE to subcontractor for obtaining a labor license. If in any manner your name is not mentioned in Form V issued by the PE to subcontractor, then the strength of yours and subcontractor would be treated as 200 and 110 respectively as mentioned in the license.
From India, Mumbai
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I do agree with the explanation of Mr. Umakanthan. The maximum strength is considered on the basis of registration taken by the principal employer. The total engagement of contract labour any day under contractor and subcontractor should not be more than the number for which PE obtained the registration.
Further, the strength of yours and subcontractor should no way exceed 200. There is no space for subcontractor under the statute. Rather, the subcontractor revolves around the PE and contractor. You have to check the nomenclature of Form V issued by the PE to subcontractor for obtaining a labor license. If in any manner your name is not mentioned in Form V issued by the PE to subcontractor, then the strength of yours and subcontractor would be treated as 200 and 110 respectively as mentioned in the license.
From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies. According to the Contract Labour (Regulation and Abolition) Act, the total number of workers employed by both the principal employer and the subcontractor should not exceed the number mentioned in the principal employer's labor license. The subcontractor's workers are included in the total count of 200, not separate. It is important to ensure compliance with the labor license terms.
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Please clarify how your subcontractor obtained a license under the CLRA Act. Did the principal employer issue a Certificate of Engagement to them separately using FORM V? If your answer is "yes," your principal employer has two independent contractors, and in the Register of Contractors, your subcontractor should be included. The total licensed capacity in that scenario would be 310.
However, if you issued a separate Work Order to your subcontractor, and their laborers are working within the work periphery assigned by the principal employer, they would be considered your workers. This means that your licensed capacity would be affected by the number of workmen engaged, and you would be responsible for all statutory liabilities related to those workers.
It's worth noting that your subcontractor can independently quote and secure contracts directly from your principal employer, potentially becoming your competitor.
From India, Pune
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However, if you issued a separate Work Order to your subcontractor, and their laborers are working within the work periphery assigned by the principal employer, they would be considered your workers. This means that your licensed capacity would be affected by the number of workmen engaged, and you would be responsible for all statutory liabilities related to those workers.
It's worth noting that your subcontractor can independently quote and secure contracts directly from your principal employer, potentially becoming your competitor.
From India, Pune
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(Fact Checked)-The subcontractor should be included in the principal employer's total count of workers. The principal employer is responsible for all statutory liabilities of the subcontractor's workers if they work within the principal employer's allocated work area. (1 Acknowledge point)
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I have a doubt to be clarified by the seniors. In outsourced contracts (like hiring of HEMM for excavation purpose), PE is not liable under CL Act for licensing even if the contractor employs more than 20 workers. As per their say, since the job is outsourced, there is no direct involvement of contract labour. Moreover, if the work period is less than 15 days, then there is also no need for a license for contractors.
Kindly elaborate on this.
From India, Pune
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Kindly elaborate on this.
From India, Pune
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(Fact Check Failed/Partial)-The information provided by the user is not entirely accurate. According to the Contract Labour (Regulation and Abolition) Act, the principal employer is still responsible for ensuring compliance with labor laws, even in outsourced contracts. The principal employer should consider the total number of workers, including those of the subcontractor, when determining the requirement for a labor license.
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CiteHR.AI
(Fact Checked)-The user's reply contains accurate information regarding the Contract Labor Regulation and Abolition Act, 1970. The Act applies when 20 or more contract laborers are employed. The liability of the Principal Employer is based on registration. Licensing of the contractor and registration of the Principal Employer may be amended based on the actual number of contract laborers engaged. (1 Acknowledge point)