Understanding Labor License Requirements and Contract Labour Act Procedures

On behalf of my employer, I am going to execute a project in Rajasthan in EPC nature. Considering the nature of construction activities, we have to engage three subcontractors in different fields to execute the site construction works. The total estimated construction labor requirement for this work shall be limited to 50, and the duration of site works is 4 months, i.e., 120 days.

My client, as a principal employer, has obtained a registration certificate for 50 laborers against my company's name (as a Contractor) from the office of the registration officer as per the Contract Labour Act of 1970.

Now, the number of laborers for each of my subcontractors to be deployed at the site shall be less than 20, and the duration of work is less than 120 days. Therefore, this Act shall not be applicable to my subcontractors, and they do not intend to obtain any labor license.

In this context, my client is insisting on me to make an application in my company's name to get a labor license, but my company does not handle labor directly.

Kindly advise me on the procedures to overcome the above situation.

Best regards,

T. Sarkar
Mumbai

Dear Tusar,

As a Principal employer, your client has obtained the Labor License and is listing you as a Contractor who will provide 50 employees to complete the work. Since you are supplying the manpower to your client, and the number exceeds 20, you are required to obtain the Labor License.

You must complete FORM No IV under The Contract Labour (R&A) Act, 1970, and submit it to the Labor Department along with the prescribed fee and a copy of your principal employer's Labor License.

You have hired 3 Contractors to supply the workforce. In this scenario, you act as the PRINCIPAL EMPLOYER. Once you have secured the Labor License, you can instruct these Sub-Contractors to obtain their Labor Licenses.

AMATYA

Dear Tusar,

"As a principal employer, your client has taken the labour license" and "copy of the Labour License of your principal employer."

AMATYA

To add, the principal employer has not taken a contract labor license; he has registered under the CL Act and obtained a registration certificate so that he can engage a contractor. Now you (Tushar) are the contractor, and your client is the principal employer. You need to obtain a contract labor license now:

1. Form V from the principal employer
2. Application for license in Form IV in 3 copies
3. Copy of the registration certificate of the principal employer in Form II

In CLA, only the principal employer and contractors are involved. There is nothing to do with a subcontractor, so you will have to obtain a license from the licensing authority, whether State or Central.

Please correct me if I am wrong.

Regards,
Anirudh

Dear Sir,

My case resembles that of Mr. T. Sarkar. I am going to execute a project in EPC nature in Orissa. Considering the nature of construction activities, we have to engage four subcontractors in different fields to execute the site construction works. The total estimated construction labor requirement for this project shall be limited to 150, and the duration of site works is 6 months, i.e., 240 days.

Here, I have obtained the labor license in my name. However, I am facing a problem because my company is a project office of a foreign company with 9 employees, and we do not have our independent PF code. On the site, our subcontractors have their independent PF code, and they are depositing.

Thank you.

Dear Sir,

My case resembles that of MR. T. SARKAR. I am going to execute a project in ORISSA in an EPC nature. Considering the nature of construction activities, we have to engage four subcontractors in different fields to execute the site construction works. The total estimated construction labor requirement for this project shall be limited to 150, and the duration of the site works is 6 months, i.e., 240 days.

Here, I have obtained the labor license in my name. However, I am facing an issue as my company is a project office of a foreign company with 09 employees, so we do not have our independent PF code. On the site, our subcontractors have their independent PF code, and they are depositing returns regularly. Now, my question is whether I have to...

Please complete your query for further assistance.

Thank you.

Hi, this is Ramanpreet. Could you please let me know where to apply for a labor license pertaining to the Gurgaon project? We have started our project in Gurgaon and require a labor license for 100 laborers. How much do we have to pay for the license fees and other charges? Also, I would like to know where to submit the documents to obtain the labor license.

Regards, Ramanpreet

Dear all,

Anirudh's view is the correct procedure for obtaining a License and Registration Certificate under the CL(R&A) Act 1970.

Regards,
Sudheer Kumar

One query from me to all: Under the CL(R&A) Act, is it mandatory to renew the Registration Certificate every year? I believe that as a principal employer, once you obtain the RC, if any changes are needed, you would apply for an amendment to the RC. Am I right?

Please correct me if I am wrong.

Regards,
Anirudh

Dear Member,

By renewing it through the Chief Inspector of Factories or any officer authorized in this regard in your State, you can extend your labour license. Apply for renewal following the procedure outlined in your State Factory Rules. In this context, it is important to note that this license is referred to as a factory license and not a labor license.

Dear All,

I am also facing a similar situation here as my company is engaged in construction work and has obtained a contract for external development work from our client. However, we have subcontracted the work to three additional contractors. I would like to know if the manpower of our subcontractor exceeds 20 individuals, do they need to obtain a labor license? If so, who would be considered the principal employer for our subcontractor, our client, or our company?

Please advise me.

Best Regards,
Rajiv Sharma