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Labour licence Registration
Your Trusted Partner in Payroll and Compliance Services.
Labor License Registration Act applies to the Principal Employer of an Establishment and the Contractor wherein 20 or more workmen are employed or were employed even for one day during the preceding 12 months as Contract Labor.
This Act does not apply to the establishment where work performed is of intermittent or seasonal nature. if a Principal Employer or the contractor falls within the vicinity of this act then, such principal employer and the contractor have to apply for labor license issuance or renewal for the establishment.
Labor License Registration -Responsibility
Key Features.
The Act enjoins Joint and Several responsibilities on the Principal Employer and the Contractor. The Principal Employer should ensure that the Contractor does the following:
a) Pays the wages as determined by the Government if any, or;
b) Pays the wages as may be fixed by the Commissioner of Labour.
c) In their absence pays fair wages to contract laborer.
d) Provides the following facilities:
i. Canteen (if employing 100 or more workmen in one place) and if the work is likely to last for 6 months or more.
ii. Restrooms where the workmen are required to halt at night and the work is likely to last for 3 months or more.
iii. A Requisite number of latrines and urinals – separate for men and women.
iv. Drinking water.
v. Washing.
vi. First Aid.
vii. Cache
e) Maintains various registers and records, displays notices, abstracts of the Acts, Rules, etc.
f) Issues employment card to his workmen, etc.
Labor License Registration
- Death Benefit
- Cash Reward
- Maternity Benefit
- Family Pension
- Educational Institution
- Health Checkup .
- Advance for purchase or construction of house.
Why Labour Licence Is Important
Section 9 of the Act provides that the Principal Employer, to whom this Act is applicable, fails to get registered under the Act, then such Principal Employer cannot employ contract labor. It also appears that if the Establishment is not registered or if the Contractor is not licensed then the contract labor shall be deemed to be the direct workmen and the Principal Employer or the Establishment shall be liable for the wages, services, and facilities of the contract labor, etc. For contravention of the provisions of the Act or any rules made thereunder, the punishment is imprisonment for a maximum term up to 3 months and a fine up to a maximum of Rs.1000/-.
Checklist for Principal Employer
1. Registration of the Establishment.
2. Display of the following notices rate of wages, hours of work, wage
period, date of payment of wages, date of payment of unpaid wages, and name and address of the inspector having jurisdiction.
3. Maintenance and Preservation of Register of Contractor.
4. Filing of Return of Commencement and Completion of the Contract.
5. Filing of Annual Return.
6. Supervising the responsibilities of the Contractor to avoid enjoining of the liabilities.
7. Ensure provision that facilities of Canteen, Drinking Water, Washing, Rest Room, Latrines and Urinals, First Aid, Cache are provided by the Contractor.
Checklist for Contractor
1. Licensing.
2. Renewal of the License.
3. Maintenance and Preservation of Register of Persons employed, Muster Roll, Register of wages, Register of Fines, Register of Deductions for damages or loss, Register of advances, Register of overtime.
4. Display of Notice rate of wages, hours of work, wage period, date of payment of wages, date of payment of unpaid wages, and name and address of the inspector having jurisdiction.
5. Provide facilities of Canteen, Drinking Water, Washing, Rest Room, Latrines and Urinals, First Aid, Cache.
6. Employment card.
7. Service Certificates.
8. Half yearly return.
Documents Required For Labor License Registration
These Documents are required for Labor License Registration
- PAN Card Of Company’s Director or Contractor.
- Email and Mobile no of Contractor and Principle Employer Both
- Registration Certificate No of the Establishment of Principal employer.
- Nature of Work.
- No. of Worker Appointed and duration of Work (start date to end Date).
- Name of Manager at the worksite
- Certificate Issued by Principal Employer In Form III.
- Copy of Work Order.
- Memorandum of Association / Article of Association.
- Partnership Deep.
Minimum 20 Employees employed @ Rs. 90
Frequently Asked Question
Whether all contractors have to obtain contract licence under Contract Labour (R & A) Act.?
Every contractor of an establishment who employ 20 or more contract workers have to obtain Contract license under this Act.
Whether all Establishments are to be registered under Contract Labour (R & A) Act ?
Every principal employer of an establishment who employ 20 or more contract workers have to register under this Act.
Is there any restriction to obtain License?
Only the factories having manufacturing process employing 10 or more workers with the aid of power or 20 or more workers without the aid of power can be granted the license in conformed APPROVED INDUSTRIAL AREAS.
The factories covered under the category of chemical factory, re-rolling mill and stone crushing are covered under Section 85 of the Factories Act, 1948 irrespective no. of workers and have to obtain licence. NOTIFICATIONS in this regard may be referred in notification section.
Can a licence of a factory be granted in residential area ?
No. The factories cannot run in residential/non-conformed areas as per the directions of Hon’ble Supreme Court.
What is the Penalty for violation of the provision of the act & rule?
Imprisonment which may extend to 3 months or with fine which may extend to Rs. 500/- or with both for obstruction to the Inspector & Imprisonment which may extend to 3 months or with fine which may extend to Rs. 1000/- or with both for contravention of provision regarding employment of contract labour
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