Contract Labour License

 Contract Labour (Regulation & Abolition) Act, 1970

The Contract Labour (Regulation and Abolition) Act, has been enacted by the Indian Legislature from the year 1970. The act intends to prohibit the employment of contract labour in certain circumstances and to regulate the working conditions of contract labour during employment. In this article, we look at the Contract Labour Act applicable in India in detail.

Applicability of the Act

The Contract Labour (Regulation and Abolition) Act applies to the following entities:

1. It applies to any establishment in which twenty or more workmen are employed on any day of the of the accounting year as contract labour.
2. It applies to any contractor who employs or who employed twenty or more workers on any day of the accounting year.
3. Also, it does not apply to the establishments if any work performed in the intermittent nature.
4. It does not apply to the establishments if any work not performed for more than one-twenty days in a year.
5. It does not apply to the establishments situated in the special economic zone(SEZ).
6. It does not apply to the establishments if any work performed in the seasonal nature for more than sixty days in a year.

Central V/S State Contract Labour License 

Central Contract Labour Act 1970 - 

CLRA Act  Central means Its applies Central Govt. Undertaking Establishment, where 20 or More Workman employed in a financial year. 

For Ex. - BHEL, ONGC, GAIL, NALCO, NTPC, Refiny , Mines, SBI Etc

As Per State Govt. Contract Labour License - 

Contract Labour Act in State Govt Undertaking and Private Establishment in state, where 20 or More Workman employed in a financial year. 

For Example - Reliance, Genpact , HCL, IBM,etc.

What is Purpose of This Act - 

1.  To Regulate the Working Condition of Contract Labour
2. No Overtime Process 
3. To regulate on time salary and wages payment 
4. To resolve dispute during salary and wages reimbursement 

What is Workman Process 

As per Contract Labour (Regulation & Abolition) Act, 1970,  following work man are covered under Workman Process. 

Included  - 

• Skilled workman
• Semi skilled workman
• Unskilled workman
• Supervisor 
• Technical and Clerical 

Not Included - 

Managerial Level Work Man are not covered under Contract Labour Act 1970

Responsibility of Contractor - 

1. Payment on time 
2. Walefare and Health & Safety of Workman
3. Canteen, Bathroom and Restroom 
4. First - Aid facillty etc

If Contractor dont have these facility then Priciple Employer most should have 

Documents Required for Contract Labour License 

1. Name of Contractor 
2. Address Proof of Contractor 
3. Pan card of Contractor 
4. Name , Mobile Number, Email id, Pan card , Adhar card, Photograph of Authorized Representative 
5. Shop and Establishment Registration Certificate 
6. Work Order or Agreement
7. Nature of Work 
8. PF Registration (if any)
9. ESIC Registration  (if Any)

Principle Employer Documents 

1. Registration Certificate under Contract Labour Act 1970
2. Address Proof of Principle Employer
3. Form -3 
4. Name, Mobile Number, Email id , Pan card and Adhar card of Authorized Representative 
5. Form 5 (Issued by Principle Employer) 

Validity of License - License is Valid for 1 year. 

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