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Contract labour

(Querist) 26 March 2011 This query is : Resolved 
When should a contractor should apply for contract labour licence..?
When should a Principal employer should apply for licence

Is it possible to apply for licence after lending a contract within a reasonable time say 3 months.
Vijayan Balakrishnan (Expert) 27 March 2011
Under the Contract Labour (Regulation and Abolition) Act, 1970, every establishment, which wishes to deploy contract labour, must be registered with the appropriate authorities. Similarly, every contractor is requred to obtain a Licence before repeat before undertaking or executing any work through the contract labour. The licence is granted subject the conditions as laid down in the Act and the rules. So it is not possible to apply for licence after lending a contract within a reasonable time. The licence must be obtained before repeat before from the licensing officer.
Guest (Expert) 27 March 2011
Dear Vishu,

Under Section 1(4) of the Contract Labour (Regulation and Abolition) Act, 1970, every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour has to apply for the license.

Similarly, it is also compulsory for every contractor who employees or who employed on any day of the preceding twelve months twenty or more workmen.

Provided that the appropriate Government (Central or State overnment) 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.

The provisions of the Act however does not apply to establishments in which work is only of an intermittent or casual nature is performed.

For detailed guidance please go through the Contract Labour (Regulation and Abolition) Act, 1970.


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