Dear All,
I have a query regarding the labour License.
In XYZ Company, a contractor is having the license for deploying 100 contract labour per day (In the license it is mentioned as “Number of workmen employed as contract labour in the establishment shall not, on any day exceed 100”) but in his muster roll there are 120 contract labour names. Though he is having 120 names in the muster roll the daily deployment of contract labour is only limited to 100.
My query is that the contractor has to get license for all 120 labours or the current license is enough?
Warm Regards,
Jey

From India, Mumbai
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As long as he maintain the deployment strength of 100, he need not take licence for more than 100. If any day, the deployment is more than 100, he needs enhancement.
From India, Delhi
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He has to pay additional fee of 600RS to Dy.Chief Inspector of factories and submit Form I along with original Form II given to them for carrrying out the amendments.
From India, Madras
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If he is sending only 100 at a time into the organization, then there is no need for a license. Since he may be sending laborers on a rotation basis for which he has to keep 120 laborers, if in any case it crosses 100, then he has to get a license; otherwise, there is no need.
From India
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Hi Jey He may take 120 employees but as per licence he has to maintain the records for 100 employees. it will be better to avoid statutory problems.
From India, Bangalore
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I want to know if the contractor is having less than 10 or 20 employees, then whether it is necessary to have a PF License for the contractor or if the contractor can distribute the wages without deducting the PF 12%. Please clarify.
From India
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Since your organisation is the prinicipal employer, it is alwats advisable to go for Contractors having their registration.
From India, Thana
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Dear Nayyarji,

Can a contractor be appointed without being registered and having a workforce of fewer than 20 workers? What is the liability of the principal employer in a case where they have not deducted and deposited the 12% PF?

Thank you.

From India
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Dear friends,

Those suggesting that an amendment in the license for 120 employees is necessary are mistaken. If your contractor is deploying a maximum of 100 employees at any given point in time, there is no need to amend it.

From India, Delhi
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Dear Mr. Jey,

&

Very Good Morning to all Site Members,


As you said that contractor is having the license for deploying 100 contract labour per day (In the license it is also mentioned as “Number of workmen employed as contract labour in the establishment shall not, on any day exceed 100”) clarifies your query at your own thus there is no need to amend the Licence.

Contractor and Principal Employer will have to amend the Licence as well as Registration Certificate, if the strength crosses the limit of the strength shown in the R.C. & Licence on any day of preceding 12 months.

Wishes,
From-
VIJAY VASHISTH
Head HR
+ 91 9717989830

From India, Jaipur
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The contractor should maintain the strength of workers up to a maximum of 100 under the current license in his/her muster roll. He can rotate individual workers during the working period. If he needs a greater number of workers for the contract, he must request an enhancement under the current license. He has to pay an additional fee of Rs.600 to the Dy. Chief Inspector of Factories and submit Form I, along with the original Form II provided to them, for carrying out the amendments.
From India, Ahmadabad
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Dear Mr. Jey & Site Members,

The Principal Employer & Contractor is liable to amend the R.C. & Licence only at the time when the strength exceeds the limit shown in R.C. & Licence on any day during preceding 12 months.

Wishes,

From-
VIJAY VASHISTH
Head HR
+ 91 9717989830

From India, Jaipur
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Regarding labor license, there may be 1000 names on the muster roll, but the status of being present in a single day should not exceed 100, i.e., the highest capacity of the license. So, if the number does not exceed 100, then an amendment is not necessary.
From India, Mumbai
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I endorse Akpk34 If the contractor deploy more than 100 workers any day in a year, he has to amend his license. There is no doubt about it. Naveen
From India, Ahmadabad
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CONTRACT LABOUR (REG. AND ABOLITION CENTRAL RULES, 1971 :: OFFICE OF THE LABOUR COMMISSIONER, GOVERNMENT OF NCT OF DELHI
check it out

From India, Pune
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Dear Jey, If contractor is deploying only 100 or less than 100 workers in any day, then there is no need for doing amendment in form VI. Regards, Sanjay
From India, Pune
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Dear Shri Jerald,

The Contract Labour Act is applicable to establishments that employ more than twenty persons as contract labour. For this purpose, the establishment is required to get registered. It is also applicable to contractors who supply twenty or more contract labourers to any establishment. Such a contractor is required to have a license. Thus, the license is for a particular establishment where more than twenty labourers are supplied.

Irrespective of the number of persons in the contractor's employment, he may enter into a contract with any establishment to supply any number of persons, which may be less than the total persons in his employment.

Regards.

From India, Pune
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Dear All, I want to know the procedure for getting labour Licence as well as what documents we need to submit for the same.
From India, New Delhi
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First of all, a contractor labor license would be issued by the Dy. Commissioner of Labor, not the Dy. Chief Inspector of Factories. Any increase in the number of contract laborers beyond the permitted limit must be approved by the Labor Department, not the Factories Department. Hope this is correct.

Kumar

From India, Kakinada
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Dear No need to take license for further employees b’coz he is deploying only 100 employees.
From India, Kota
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Hi, I am also intending to take up the business of supplyingcotract labours. I have applied for EPF and ESI registration. Is it necessay to obtain Labour License also?
From United States, Newport Beach
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Hi, I am also intending to take up the business of supplying contract labourers. I have applied for EPF and ESI registration. Is it necessay to obtain Labour License also?
From United States, Newport Beach
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From India, Delhi
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There is no necessity to increase the strength in labour license, so far the number of labours per day does not exeed the licensed limit.
From India, Hyderabad
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Immediately the license needs to be ammended. So you may ask the contractor to approach the competent authority from whom the license has been issued earlier. Further any problem they may guide you.

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Dear all,

As far as the XYZ company is concerned, the license of the contractor for 100 labor suffices as the deployment is limited to 100. But as regards the contractor, his license has to reflect the muster roll strength. So there is a need on his part to amend the license for a strength of 120.

The appointment of a contractor with fewer than 20 workmen is to be seen in the context of the establishment in which the work is actually done. If the establishment has twenty or more workmen, then the Act applies. A contractor having fewer than 20 workmen is not covered under the Act, but if the establishment is covered under the Act, the statutory authorities can seek enforcement of the Act against such contractors too. In such cases, it is the liability of the principal employer to ensure all compliances. Hence, a safer option in all establishments with 20 or more workmen will be to have contractors who are licensed, having independent PF, ESI code, etc. This will save the principal employer from the liability of compliances.

Regards,

KK


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If the labour is increase then you payspecific fee in SBI bank.of this labours and add 20 labours in your current license
From India, Pune
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If the contractor is use more then 100 labor he/she has to take amendment in his/her license and it is compulsory
From India, Delhi
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I am working at XYZ Co. Please provide the information. We need the contract license, but it's not clear in which area the license is required. To the best of my knowledge, the processes are only for housekeeping, gardening, loading/unloading, and canteen services. Therefore, I kindly request clarification on the above matter. Thank you.
From India, Surat
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Dear Jey,
As per The Contract Labour (R & A) Act, 1970 licence always taken on the employed number of employees as mentioned in your muster roll
We usually take licence as per employee count on a Peek day.
So pls take a licence and cover all your employee under it otherwise you have to face Labour Compliances

From India, New Delhi
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The limit is set for a single wage period (wages payable on end of), it may be daily / weakly or monthly, in any wage period, the strength should not exceed the granted limit,

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