| Is an organisation which outsources housekeeping , security services to agencies and has manpower from these agencies in the organisation through such agencies , required to register itself as a principal employer/contractor under the Contract Labour regulation and Abolition Act,1970? Also, will it make a difference if the agreement with the service agency is signed as a manpower supply agreement instead of a service agreement? THE CONTRACT LABOUR (REGULATTION AND ABOLITION) ACT 1970 applies-- (a) To every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract Labour; (b) To every contractor who employees or who employed on any day of the preceding twelve months twenty or more workmen: Provided that the appropriate Government 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. Therefore you kindly examine whether you have employed twenty or more workmen as Contract Labour during the preceding twelve month in our office, to ascertain if the provisions of the Contract Labour (Regulation and Prohibition) Act, 1970 are applicable to us. For the purpose of calculating the number of Contract Labour employed for different purposes through different contractor has to be taken into consideration. If a Principal Employer (PE) or the Contractor falls within the vicinity of this Contract Labour (Regulation and Prohibition) Act, 1970 then, PE and the Contractor have to apply for Registration of the Establishment and License respectively. For your Second Query, I have to say that please do not enter into sham contract to avoid the obligations under Contract Labour (Regulation and Prohibition) Act, 1970. As whatever is the title to your agreement has if your are employing contract labour provision of the Act will be applicable on you. i have two questions:1) if an employee under contract labour is removed illegally by the contractor, will he(c.labour.) be filing a case against the principal employer or the contractor. 2) in case of contractual labour gratuity and all are to be paid by whom the cintractor or the principal employer.? Dear Satty Please bear it in mind that eventhough the worker engaged by the contractor, are engaged in the Principal employer's complex and for the work of PE. It is the duty of Contractor to face the case filed against the worker and the Payment part the Principal Employer has to ensure that the Labourer will get his entitled F&F Settlement benefits. Otherwise the Principal employer has to make good of it. Dear Pooja If a contractor want to obtain the license under CL Act, for an establishment where he is planned to place his workmen, he must obtain the copy of Form 1 or Form 2 (Registration of Establishment Certificate or Application for registration of Establishment under CL Act) and Form 5 (Certificate from Principal Employer) and Letter of Indent or work order alongwith the Application for obtaining Licence (Form 4). Then only he can be issued with the Licence (form VI). Hope your querries are attended. If you have any other querries never hesitate to ask the forum members. All the best
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