Labour Licence Issuance
Labour Licence 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 Labour.
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 labour licence issuance or renewal for the establishment.
The contractor also provides for Temporary Registration in case the Contract Labor 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.
it appears that the Principal Employer has to apply for labor license registration, renewal in respect of each establishment. Another 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.
The Act enjoins Joint and Several responsibity 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.
vi. First Aid.
e) Maintains various registers and records, displays notices, abstracts of the Acts, Rules etc.
f) Issues employment card to his workmen, etc.
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 licensed 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/-.
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.
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, Crche.
6. Employment card.
7. Service Certificates.
8. Half yearly return.
These Documents are required for Registration of new Company at ECR Portal for getting USER ID and Password for employer. (for filling ECR Challan)
Frequently Asked Question
Every contractor of an establishment who employ 20 or more contract workers have to obtain Contract licence under this Act.
Every principal employer of an establishment who employ 20 or more contract workers have to register under this Act.
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 licence 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.
No. The factories cannot run in residential/non-conformed areas as per the directions of Hon’ble Supreme Court.
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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