Contract license for the contractor
Abhishek Aditya
(Querist) 02 September 2011
This query is : Resolved
Dear Members,
I have a query on The Contract Labour (Regulation & Abolition) Act.
The act applies to every establishment in which 20 or more workmen are employed or were employed on any day on the proceeding 12 months as contract labour and to Every Contractor who employs or employed any day of preceding 12 months 20 or more workmen.
My question is that,
the requirement for obtaining the license for contract is on totality basis or establishment basis.
e.g. A contractor provide 10 workers to Altd &9 worlers to B ltd. He is not required to get license but what if he is providing 21 workers to a Ltd and 25 to B Ltd. Now the contractor is required to get one license for 46 workers or two different licenses as per the establishment basis.
prabhakar singh
(Expert) 02 September 2011
A ltd. is a judicial entity independent of
B ltd.and hence there are 2 entities in law.
Abhishek Aditya
(Querist) 02 September 2011
Did you mean to say that The contractor is required to take 2 different licenses?
I have confusion about the no. of licenses.
Please reply.
Raj Kumar Makkad
(Expert) 02 September 2011
You re required to obtain a single license which is sufficient for you to provide your services in various institutions.
Abhishek Aditya
(Querist) 02 September 2011
Thank you sir, I have one more question, what the establishment hired workers from different contractors?
e.g. A ltd Hired 20 workers from Contractor A and 20 workers from contractor B.
Now A ltd as a establishment required to have a license for Both the contractors separately or a single license irrespective of contracts.
Please guide.
Sailesh Kumar Shah
(Expert) 02 September 2011
Mr. Prabhakar Singh rightly advised you. See Rule 21(1) of Contract Labour (Regulation & Abolition) Central Rules, 1971. Which Reads as follows:
1) Every application by a contractor for the grant of a licence shall be made in triplicate in Form IV, to the licencing officer of the area in which the establishment, in relation to which he is the contractor, is located.
Raj Kumar Makkad
(Expert) 02 September 2011
In response to your second question I think A limited is also required to seek only one license.
K.S.Srinivas
(Expert) 02 September 2011
In respect of first question, I agree with expert Raj Kumar Makkad.
In respect of second question, the establishment 'A' Limited has to get registration under section 7 of the Act. The establishments 'A' Limited hired workers from Contractor A and 20 workers from contractor B, both the contractors 'A' and 'B' should possess licenses separately as both A and B are different individual contractors.
