Contractor License / Labour License / Principal Employer Registrations

The Contract Labour (Regulation and Abolition) Act, 1970, commonly known as the CLRA, is an important piece of legislation in India that regulates the employment of contract labour in establishments and factories. The Act was passed in response to the growing exploitation of contract labourers and their inadequate working conditions. In this blog post, we will delve deeper into the CLRA and its significance.

Background

Before the enactment of the CLRA, the employment of contract labourers was largely unregulated, which resulted in their exploitation and low wages. Contract labourers were often hired for temporary work and were not entitled to the same benefits as regular employees. Moreover, they were often not provided with basic facilities such as medical care, housing, and sanitation. The CLRA was passed to address these issues and provide protection to contract labourers.

Objectives of the CLRA

The main objectives of the CLRA are to regulate the employment of contract labourers and ensure that they receive fair wages, working conditions, and social security benefits. The Act also aims to prevent the exploitation of contract labourers and protect them from any discriminatory practices. In addition, the Act seeks to abolish the employment of contract labourers in certain circumstances where it is deemed exploitative or unnecessary.

Applicability of the CLRA

The CLRA applies to every establishment or factory that employs 20 or more contract labourers on any day of the preceding 12 months, in some states it is applicalbe on 50 or more contract labourers also. The Act also applies to contractors who supply contract labour to these establishments. The Act does not apply to establishments or factories where work is of an intermittent or casual nature.

Registration of Establishments

Under the CLRA, every establishment or factory that employs contract labourers must register itself with the appropriate government authority. The registration process involves filling out a form and submitting it to the authority along with a fee. The registration is valid for a period of one year and must be renewed annually.

Rights of Contract Labourers

The CLRA provides various rights to contract labourers, including the right to fair wages, working conditions, and social security benefits. Contract labourers are entitled to the same wages and benefits as regular employees doing the same work. They are also entitled to facilities such as canteens, restrooms, and medical care. In addition, the Act prohibits discrimination against contract labourers on the grounds of race, religion, caste, sex, or place of birth.

Obligations of Employers

Employers who employ contract labourers are required to comply with various obligations under the CLRA. They must ensure that contract labourers are provided with the same wages and benefits as regular employees doing the same work. They must also provide facilities such as canteens, restrooms, and medical care to contract labourers. Employers must maintain registers and records of contract labourers and ensure that they are not discriminated against on any grounds.

Liability of Contractors

Contractors who supply contract labour to establishments or factories are also liable under the CLRA. They must ensure that contract labourers receive the same wages and benefits as regular employees doing the same work. Contractors must also provide facilities such as canteens, restrooms, and medical care to contract labourers. They are also required to maintain registers and records of contract labourers.

Penalties for Non-Compliance

The CLRA provides for penalties for non-compliance with its provisions. Employers who violate the provisions of the Act can be fined or imprisoned. In addition, their registration can be cancelled or suspended. Contractors who violate the provisions of the Act can also be fined or imprisoned.

Abolition of Contract Labour

Under certain circumstances, the employment of contract labour can be abolished under the CLRA. For example, contract labour cannot be employed in work that is of a perennial nature or in work that

We at Walia Associates help the employers and companies to obtain contract labour license and prinicipal employer registration in Amritsar and Punjab by coordinating with local authorities in a very hassle free mode. Reach us as per your convenience or call us at 9357730033 or 7087870003