Contract Labour Actapplicability on AMC
Ashish Sharma
(Querist) 22 June 2011
This query is : Resolved
Dear Team Members,
Our Organisation have taken Annual Maintenance Contract in certain establishment, wherein we have to pay attend our customer call maximum 10 days in the entire 365 days, as & when customer ask us to get repair & maintenance of big machinery, irrespective of manpower. But in any case our visit not exceed 10 days in a year.
Kindly enlighten, whether, we are liable to take labour license in such conditions or exempted under section 1(5)intermittent nature of work, of contract labour Act- 1970
With Regards,
Ashish K Sharma
Ajay Bansal
(Expert) 22 June 2011
There is no need of taking any labour license becouse you are not in purview of industry by doind only work for 10 days in a year. A work of atleast 240 days in a year, either by employee or by employer, is must to come in purview of labour law.
V.Harikrishnan
(Expert) 22 June 2011
Dear Mr.Sharma
Your post does not indicate the number of workmen employed by the organisation in which you are employed. In case your organisation employs twenty or more workmen, you have to take out a license under the Contract Labour(Regulation and Abolition) Act
With regards
V.HARIKRISHNAN
Ashish Sharma
(Querist) 23 June 2011
Dear Mr. Kamal,
My openion is beg to differ with you in certain grounds,
I agree that Under Section 1(4) of the Contract Labour (Regulation and Abolition) Act, 1970, every establishment, wherein twenty or more workmen are employed or were employed on any day of the preceding twelve months must be registered with the appropriate authorities.
Similarly, it is also compulsory for every contractor who employees or employed twenty or more workmen on any day of the preceding twelve months, as contract labour has to apply for the license.
Despite of the fact, The provisions of the Act, does not apply to establishments in which work is only of an intermittent or casual nature is performed (120 days in preceding 12 months or if it is of a seasonal character I.e 60 days in a year).
Keeping in view of the above, I understand that we come in the perview of Sec 1(5) under contract labour Act, hence, we should not enforce to take the labour license, as an Contractor (service provider for O & M work).
Please enlighten me, whether my openion is correct or wrong with copy of Copy of judgement.
With Regards,
Ashish K Sharma
Kirti Kar Tripathi
(Expert) 24 June 2011
Yes, you are required to obtain Contract Labour license. You can not escape.
