Is It Applicable Under Contract Labour (Regulation And Abolition) Act, 1970

Dear HR Professionals,

We have applied for Licence under Contract Labour (Regulation And Abolition) Act, 1970 in Government of Andhra Pradesh.

We are waiting to receive that licence from Government of Andhra Pradesh.

After receipt of licence, shall we maintain following records to below 20 workmen.

1 Form XIII Register of Workmen employed by the contractor Rule 75
2 Form XIV Employment Card Rule 76
3 Form XV Service Certificate Rule 77
4 Form XVI Muster Roll Rule 78(1)(a)(i)
5 Form XVII Register Of Wages Rule 78(1)(a)(i)
6 Form XVIII Register Of Wages cum Muster Roll Rule 78(1)(a)(i)
7 Form XIX Wage Slip Rule 78(1)(b)
8 Form XX Register of deductions for damage or loss Rule 78(1)(a)(ii)
9 Form XXI Register Of Fines Rule 78(1)(a)(ii)
10 Form XXII Register Of Advances Rule 78(1)(a)(ii)
11 Form XXIII Register Of Overtime Rule 78(1)(a)(iii)

But In Form IV, Maximum No. of contract labour proposed to be employed in the establishment on any date : 50 Nos.

Contract Labour (Regulation And Abolition) Act, 1970 applies--
(a) 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;
(b) to every contractor who employees or who employed on any day of the
preceding twelve months twenty or more workmen:
Provided that the appropriate Government may, after giving not less than two
months' notice of its intention so to do, by notification in the Official
Gazette, apply the provisions of this Act to any establishment or contractor
employing such number of workmen less than twenty as may be specified in the
notification.

Please clarify

Thanks with Regards

Thirumurugan

Check Your state's CLRA rules. They must have increased the limit for availing license for engaging contract labours in their state. As per central act, it is common to obtain license, if it exceeds 20. But using the powers in the act, state government will amend some revisions.
Last year they have increased the limit for obtaining factory license from earlier 10 with power to 20 with power and 20 without power to 40 without power.
Like this, you have to check your state's rules before proceeding for applying any licenses.

Dear HR Professionals,
Still now we did not find out correct way in the subject of contract labour regulation and abolition act 1970. Kindly clear our following queries.
Shall we maintain record for below twenty workmen under CLRA act or not?
In Form IV, we have proposed maximum No. of contract labour to be employed in the establishment on any date : 50 Nos. But presently our contract labour strength is below twenty. Our appropriate Govt. is Andhra Pradesh.
We are disbursing those employees salary through bank account deposit
How can we maintain Form XVII Register Of Wages Rule 78(1)(a)(i) and Form XIX Wage Slip Rule 78(1)(b)
For your quick reference, we have attached Contract Labour Andhra Pradesh Rules 1971 , Contract Labour Central Rules and contract labour regulation and abolition act 1970
Please clarify above things
Thanks with Regards
Thirumurugan

If you have obtained form IV for 50 employees from the Principal employer, your employment strength on any date may be 50. That means you are expected to give 50 workers to the principal employer. It may be true that at present you have less than 20 workers. Moreover, your Principal employer wants that you should hold a licence so that much confusions can be avoided. Now having got a licence under CLRA Act you are not going to be under pressure from the labour department. You can maintain the registers and send returns as are required under the Act. Certain registers like Wage Register and pay slip can be avoided just on the ground that you pay the wages through bank. Though for maintaining books in soft forms requires approval from the labour authorities, this will not make much issue. Similarly if you have issued identity cards to your employees, you may not require any employment cards for your workers. It is very common that you would be having a muster roll of your workers and that can be continued. With regard to overtime also, if your pay sheet extracted from the payroll contains the details, that is enough.

I would say that if you have got form IV from the employer, you should take the license based on that even if you employ less than 20 workers. This will give the contractor an identity.

Madhu.T.K

Dear T. Thirumurugan,

The registers & criteria of Labour Licence mentioned by u are correct.

There are two point, the registers are applicable to every contractor who deploy labour at Principal Employer establishment, (whether he has obtained labour license or not). The License is must when u comes under preview of 20 person's definition.

I have some different opinion, if the current strength is less than 20, you should not apply for the Labour Licence. But as stated by Mr. Madhu, if this give u a recognized identity (established contractor) and can be helpful to take big contracts, you can go for the Licence.

Since you have already applied in Form IV, pls make follow up with Labour Office for next process. Here important point is whether you have deposited the Security Money and License Fess thru challan (GAR 7). If challans have been deposited and submitted to Labour Off. with the application, than you are in safe zone. Once challans deposited, than its Labour Office liability to issue License (Form VI) to the contractor.

The Half Yearly Labour Return (Form XXIV) can be submitted only after getting the Labour Licence.

Also note the PE is also liable to apply obtain Registration Certificate in Form 1 and has to submit Annual Labour Return (Form XXV) in r/o sub-contracting labour.