Labour Licence Issuance

Labour Licence Issuance

Labour licence isuance or renewal process is issued by the labour department if you have more than 20 personnel working in your establishment. Generally it is for a one year duration. After which you may renew it if your contract is extended or renewed.

Labour Licence Issuance and Licensing

The Act applies to the Principal Employer of an Establishment and the Contractor where in 20 or more workmen are employed or were employed even for one day during preceding 12 months as Contract Labour. For the purpose of calculating the number, contract labour employed for different purposes through different contractor has to be taken into consideration.

This Act does not apply to the Establishments 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 labour licence issuance or renewal of the Establishment and License respectively.

The contractor The Act also provides for Temporary Registration in case the Contract Labour is hired for a period not more than 15 days. Any change occurring in the particulars specified in the Registration or Licensing Certificate needs to be informed to the concerned Registering Officer within 30 days of such change. From combined reading of Section 7 and Rules 17 & 18 of the Contract Labour license issuance or renewal (Regulation and Abolition) Central Rules, 1971,

it appears that the Principal Employer has to apply for labour licence registration, renewal in respect of each establishment. Other important point to note is that a License issued for One Contract cannot be used for entirely different Contract work even though there is no change in the Establishment.

Penal Provisions

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 labour. It also appears that if the Establishment is not registered or if the Contractor is not labour licence issuance or renewal done then the contract labour 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 labour etc.

For contravention of the provisions of the Act or any rules made thereunder, the punishment is imprisonment for a maximum term upto 3 months and a fine upto a maximum of Rs.1000/-. for not apply of labour licence issuance or renewal

Responsibilities

The Act enjoins Joint and Several responsibility 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 labourer.
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. Rest rooms where the workmen are required to halt at night and the work is likely to last for 3 months or more.
iii. Requisite number of latrines and urinals – separate for men and women.
iv. Drinking water.
v. Washing.
vi. First Aid.
vii. Crche
e) Maintains various registers and records, displays notices, abstracts of the Acts, Rules etc.
f) Issues employment card to his workmen, etc.

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 Contractor to avoid enjoining of the liabilities.
7. Ensure provision that facilities of Canteen, Drinking Water, Washing, Rest Room, Latrines and Urinals, First Aid, Crche are provided by the Contractor.

Checklist For Contractor

1. Licensing.
2. Renewal of the Labour License Registration.
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, Crche.
6. Employment card.
7. Service Certificates.
8. Half yearly return.