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Need information on labour license
16-Jun-2023 (In Labour & Service Law)
Dear Sir, We are from PSUs. Our company has engaged agency(which is a Co-operative Society) for running and maintenance works of canteens, hostels etc.. . The said agency has deployed more than 60 employees for the aforesaid works. As per said agency, all concerned employees are there shareholders. My question is that whether the said agency is come under the provisions of "The Contract Labour (Regulation & Abolition) Act" or not. Some seniors have also agreed that the persons deployed by agency are shareholders not their employees, that's why they do not need of labor license. As per my view, we have given contract work to some agency and they are abide by all Rules and Regulations . Kindly give your valuable suggestions and guide to me.
Sir,
The Object of the Contract Labour Regulation and Abolition) Act, 1970 is to prevent exploitation of contract labour and also to introduce better conditions of work. A workman is deemed to be employed as Contract Labour when he is hired in connection with the work of an establishment by or through a Contractor. Contract workmen are indirect employees. Contract Labour differs from Direct Labour in terms of employment relationship with the establishment and method of wage payment. Contract Labour, by and large is not borne on pay roll nor is paid directly. The Contract Workmen are hired, supervised and remunerated by the Contractor, who in turn, is remunerated by the Establishment hiring the services of the Contractor.
Having said that, in present case these employees of agency are not shareholders but contract labours. therefore, the principal employer of an establishment and contractor falls within ambit of the act and are required to to apply for Registration of the Establishment and License respectively.
The Object of the Contract Labour Regulation and Abolition) Act, 1970 is to prevent exploitation of contract labour and also to introduce better conditions of work. A workman is deemed to be employed as Contract Labour when he is hired in connection with the work of an establishment by or through a Contractor. Contract workmen are indirect employees. Contract Labour differs from Direct Labour in terms of employment relationship with the establishment and method of wage payment. Contract Labour, by and large is not borne on pay roll nor is paid directly. The Contract Workmen are hired, supervised and remunerated by the Contractor, who in turn, is remunerated by the Establishment hiring the services of the Contractor.
Having said that, in present case these employees of agency are not shareholders but contract labours. therefore, the principal employer of an establishment and contractor falls within ambit of the act and are required to to apply for Registration of the Establishment and License respectively.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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