Overview of CLRA Registration and Licensing

The Contract Labour (Regulation and Abolition) Act 1970 got enacted in 1970. The Act was enacted to prohibit the employment of the contract labour in some circumstances and to regulate the working conditions of these contract labour during their term of employment. Every employer who employs contract labour for his work requires to obtain a CLRA Registration and license from the appropriate authority.

The Act is applicable to the following:

• Any establishment that employs twenty or more workers on any day of the financial year as contract labour
• Any contractor who employed or employed twenty or more workers on any day of the financial year

The Act is not applicable to the followings:

• It does not apply to any establishment that performs work of an intermittent nature.
• It does not apply to any establishment that has not performed any work for more than 21 days in a year.
• It does not apply to any establishment that is situated in the Special Economic Zone.
• It does not apply to any establishment if it has performed any work of seasonal nature for more than sixty days in one year.

Kinds of CLRA Registration

The CLRA Registration is of the following kinds:

1. Registration of Principal Employer of the Establishment
2. Licensing of Contractors (valid for 12 months)

• Renewal of the contractor license: an application is made in Form VII not less than 30 days before the expiry date.

3. Temporary Certificate of Registration and License: issued to the establishments and contractor when the employment of contract labour is not for more than 15 days.

• An application is filed in Form VIII for temporary registration and Form X for a temporary license along with the affidavit.

Compliances

The compliances related to CLRA Registration/Licensing are:

1. Notice of Commencement/Completion of Contract Work Form VI-B.
2. Maintenance of Registers and Records
3. Register of Contractor Form XII
4. Register of Persons Employed Form XIII
5. Employment Card to each worker within 3 days of employment in Form XIV
6. Service Certificate on termination of worker Form XV
7. Muster Roll Form XVI
8. Register of Wages Form XVII

Returns

1. Half Yearly Return as per Form XXIV by the contractor
2. Annual Return Filed by Principal Employer in Form XXV

Contract Labour

Contract labour is a workman who is employed and hired to work in or in connection with the work of an establishment through or by a contractor, with or without the knowledge of the principal employer.

Contractor

In relation to an establishment, a Contractor is a person who supplies goods of articles of manufacture to the Establishment through contact labour or supplies contract labour for any work of the Establishment and who undertakes to produce a given result for such Establishment. The contractor here includes a sub-contractor.

Establishment

An establishment means any office or department of the Indian Government, local authority, or any place where any industry, manufacture, occupation, trade or business is carried on.

Principal Employer

A principal employer under the CLRA Act means as follows:

• In-office or department: Head of the office or department or another officer as specified by the Government or the local authority.
• In a factory: the occupier or the owner of the factory or the manager (as named under the Factories Act)
• In a mine: the agent or the owner of the mine, or a person named as manager
• In other Establishments:  Anyone responsible for supervision and control of the Establishment.

Workman

Any person who is employed in the Establishment or in connection with it to do any skilled, semi-skilled or unskilled manual, technical, supervisory or clerical work with an express or implied term of employment. Such a person does not include:

• Any person employed in the managerial or administrative capacity
• Any person employed in the supervisory capacity but draws income more than Rs. 500 per mensem or exercises, functions mainly in managerial nature.
• Any person who is an out worker, i.e., any person to whom materials or articles are given by or on behalf of the principal employer to be made up, washed, cleaned, ornamented, altered, finished, adapted, repaired or processed for sale for the purpose of trade or business of the principal employer and such process is not being carried out under the control and management of the principal employer, i.e., the work is carried out either in the home of that out-worker or in some other premises.

Registration of Establishment

The principal employer of an establishment makes an application to the registering officer for registration. The registering officer is appointed by the appropriate Government as stated in the Contract Labour (Regulation and Abolition) Act, 1970. The application for registration is made within the period fixed by the appropriate Government. The registering officer entertains the application after the said fixed period expires if he is satisfied that any sufficient reason prevented the applicant from making such an application.

If such registering officer is satisfied that the registration of any establishment is obtained by misrepresentation or suspension of any material fact or if the registration has become useless or ineffective for any reason, then he revokes the registration with the previous approval of the appropriate Government, after giving an opportunity to the principal employer to be heard.

Licensing of Contractors

The contractor does not undertake or execute any work without a license. The license is issued by the licensing officer, who the appropriate Government appoints. The license contains certain conditions such as:

• Conditions related to hours of work
• Fixation of wages
• any other essential amenities in respect of contract labour

The application for the grant of license shall contain the following particulars:

• Location of the Establishment
• Nature of the process
• Operation or work for which the contract labour is employed
• Other particulars, as prescribed.

If the licensing officer is satisfied that the license is obtained by misrepresentation or suppression of any material fact or the holder of the license has failed to comply with the conditions made under the license or has contravened any provision of the Act, without any reasonable cause, then after allowing the holder of a license to show cause, the licensing officer revokes or suspends the license or forfeit the whole or any portion of the security deposit.

Documents required for registration

The documents required for the registration of Principal Employer under the Contract Labour (Regulation and Abolition) Act are as follows:

• Valid trade license
• AOA and MOA or Partnership Deed
• Factory License
• Other certificates of registration, in case of an entity other than company, proprietorship or partnership firm
• Any other required documents

Documents required for license

The list of documents required for the grant of License of Contractors under the Contract Labour (Regulation and Abolition) Act is as follows:

• Form V
• Valid work order
• Trade license
• Any other required document

The procedure of Registration of Principal Employers

The Ministry of Labour and Employment makes the Unified Shram Suvidha facilitate reporting of inspections and submission of Returns.

The procedure of CLRA Registration of Principal Employer of an Establishment under Contract Labour (Regulation and Abolition) Act is as follows:

1. The applicant has to register first by providing basic details such as name, email, mobile number, etc.
2. After registering, the applicant files the application in the appropriate Form with all the required details and information.
3. The details which are required to be filed in the Form are:

• Principal Employer Details
• Establishment Details
• Manager Details
• Contractors Details
• Contract work Details

Principal Employer Details 

• Name 
• Address
• Designation
• Gender
• Email 
• Mobile No.
• Father/husband name of the Principal Employer
• Establishment name
• Contract type
• maximum number of Contract labour is employed on any day
• Registration fee

  

Establishment Details

• Name of Establishment 
• Location of Establishment
• Ownership type/sector
• Activity as per National Industrial Classification
• Details of selected NIC Code
• Nature of work carried on in Establishment 
• Identifiers of Establishment 
• Identifier of Establishment

Manager Details

• Name of manager or any person responsible for supervision and control of Establishment 
• Address of Manager 
• Email Address
• Mobile number
• Contract type

Contractor Details

• Name of Contractor
• Maximum number of contract labour employed through this contractor on any day 
• Address of contractor
• Email address 
• Mobile number
• Identifier of Contractor
• Contract type

Contract Work Details 

• Location of contract work
• Contractor
• Estimated date of commencement of contract work
• Activity as per National Industrial Classification
• Estimated date of completion of Contract work
• Details of selected NIC Code
• Nature of the work for which contract labour is employed
• Contract work details

4. After providing all the details, the applicant makes payment and submits the application form. 

1. The authority then approved the application and then issued the CLRA Registration Certificate.

Procedure for the CLRA License

1. The applicant makes an application at Shram Suvidha of the Ministry of Labour & Employment.
2. The Application Form contains the following details:

• Contractor Details
• Establishment Details/ P Details
• Contract Work Details

Contractor Details

• Name of Contractor
• Name and Designation of Representative
• Address of Contractor
• PAN of contractor
• PAN Card details
• Address of Representative
• Mobile number of Representative
• Contract type

Establishment Details/ P Details

• Registration Certificate number of the Establishment
• Name of Establishment
• Name and Designation of Principal Employer
• Date of Registration
• Address of Principal Employer
• Email of Principal Employer
• Mobile Number of Principal Employer

Contract Work Details

• Name and nature of work for which the workman is employed or is to be employed in the Establishment
• Estimated date of commencement of Contract work
• Estimated date of completion of Contract work
• Name of Agent or Manager of Contractor at the worksite
• Location of work
• Activity as per National Industrial Classification
• Details of selected NIC Code
• The maximum number of Contract labour is employed on any day
• Certificate by Principal Employer
• Security Fee
• License Fee

 

3. The applicant then attaches other required documents and submits the License Application after making payment.

1. The authority issues the CLRA License to the contractor.

CorpBiz Procedure for CLRA Registration and License

• Purchase a Plan for Expert Assistance
• Add Queries Regarding CLRA Registration and License
• Provide Documents to Corpbiz Expert
• Prepare Application for CLRA Registration and License
• Complete Procedural Actions
• Get your work done.