Contract Labour License
The Contract Labour (Regulation and Abolition) Act has been enforced by the Indian Legislature since 1970, intending to prohibit any employment of contract Labour in certain conditions and to regulate working conditions of labour during their contract.
Definition of a Contractor under section (2) of the Act
A contractor is one who takes over the responsibility to generate a given outcome for the establishment he contracts with, apart from supply of goods or services of manufacture to an establishment via a contract labour, or a person who provides contract labour for an establishment, there may be a sub contractor also involved.
Contractor License under Section 13G
The contractor has to file apllication with the licensing authority to grant license along with his request to do so.
Security deposit has to be paid while applying for a license. Receipt shall be attached for the fees paid to the licensing officer The principal employer has to file an application stating he is employing the applicant as his contractor at his establishment.
Licensing officer, once satisfied with all the paperwork and investigations shall grant a license, that should be renewed once in a year.
Renewal is done before the 30 days of expiry date on the license , shall be applied by the contractor with the renewal application. Once the required fees is remitted , it will be reviewed by the licensing officer for a renewal.
Registration of Establishments employing Contract Labour
Every organization or establishment that propose to employ contract workmen is required to obtain a certificate of registration from the appropriate body of the government. The employer or the establishment shall apply with the registering office filing application and paying the appropriate fees.
If the application is processed without any issues, the registering officer can register the employer or establishment and issue a registration certificate.
The certificate will have the name and address of the establishment.
The kind of business establishment is involved in.
The maximum number of workmen to be involved under the contract labour
Required documents for Registration
Copy of insurance policy , receipt and cover note
Copy of challans for the security deposit paid
Copy of the report identifying legal status of the company
Photograph of the document for the allotment of PF Code No.
Responsibilities of Establishment using contract labour
- Apply for registration of the establishment
- To use workmen only through licensed contractors. A notice shall be displayed on the premises showing the name and address of the inspector in English and local languages, including the rate of salary and date of payment.
- Retrieve all expenses involved from the contractor by way of bills payable.
- The employer has to appoint a representative to be present while dispersing wages to the contract workmen , who shall be obliged to certify the wages paid in the wage register.
- Report all details to the inspector when needed.
- Maintain a register of contractors.
- Maintain number of contractors and nature of work performed
- Send all data related to annual returns.
- Submission of returns for each contractor within 15 days of completion of work.
Contractor responsibility guidelines
- Get all approvals from the employer
- Obtain license applicable form the licensing authority
- Submission of monthly printed bills to the establishment for payment of the work performed by him starting form that day of the month.
- To present all details pertaining to the name of the inspector, wages paid so far and abstract of the Act
- Maintaining muster roll, wages , deductions, overtime, penalties, wages slips registers under the Section 29
- Provision of welfare and health care facilities, if workmen are over 100 , restrooms provision a must , including drinking water , first aid under Section 19
- Responsible for all wages dispersal before the. 7th of the month under Section 21
- Dispersal of salaries under the supervision of the representative from the establishment
- Distribution of employment cards to all workmen by the third day of the start of work
- Send half year returns after 30 days from close of half year
Offenses
Any person or entity infringes any of the provisions of the Act ,or any regulations under the Act shall face imprisonment of three or more months , or fined an amount, or both will apply. In a case where a continuing violation occurs , additional penalty will be imposed, which may be one hundred rupees every day of the violation until conviction.
If an establishment or the employer commits a felon under this Act, both of them will be punishable by law and liable to be found guilty. Unless the person states the offense was committed without his knowledge or he performed in due diligence to avoid to prevent such offense.