Any company or principal employer whose business mode meets the CLRA Act criteria must secure CLRA registration. Similarly, the contractor must obtain a CLRA license from the relevant authority before commencing their work. The CLRA (Contract Labour Regulation and Abolition) Act came into effect in 1970 after receiving the approval of the nation’s higher house. The Act aims to protect labourers’ interests, whose manipulation is common in India. This write-up will guide you through the legalities of the CLRA License in Tamil Nadu and let you comprehend its applicability.
What is the CLRA Act?
As per the CLRA Act, all contract labour refers to a type of workforce acting as an indirect company employee who has been employed to work via a contractor. Any establishment that hires contract labour must register under the CLRA Act to stay operational.
An Overview of CLRA license Applicability
The CLRA Act encompasses any company or firm that employs more than 20 workers as paid labour for any day of the past 12 months. The CLRA license does not apply to companies whose work is seasonal or intermittent. But, it is at the government’s discretion to decide the nature of work post consulting with relevant boards of the establishment.
It’s noteworthy that the eligibility criteria for a CLRA license may differ state-wise. In the status quo, that is how the eligibility criteria for securing a CLRA license in Tamil Nadu look like:
- If the applicant/business owner employing 50 or more labourers in the contractual workplace qualifies for this license
- A firm or a person shall apply
- Applicant should not be minor
- The applicant should have no criminal record
Who can apply for CLRA License in Tamil Nadu?
Any establishment or principal employer whose nature of operation falls under the ambit of the CLRA Act must apply for a CLRA license in Tamil Nadu. The contractor, in this context, also requires to secure this license from the relevant authority of the state.
Mandatory documents must be submitted while applying for a CLRA License in Tamil Nadu.
Following is the listicle of required documents concerning the CLRA license in Tamil Nadu:
- Prescribed application form
- Trade license copy
- Address proof of the applicant, such as DL/Aadhaar/Voter id
- DOB proof
- Partnership deed copy (if the firm is partnership-based)
- The actual copies of the treasuring challan depositing the underlying fees as security and license fees in the relevant Head of account or via the e-payment
- Form of certificate- Form V
- NOC accorded by the local police department
- Agreement copy between Contractor and Principal Employer
- PAN Card
Details to be provided by the applicant in the application form (Form IV)
Here are some critical enclosures of Form IV (the registration form) for securing a CLRA license in Tamil Nadu:
- Name and address of the contractor
- Detail about the establishment requiring to employ contract labour
- Number of registration certificates of the establishment
- Name as well as address of the principal employer
- Details of contract labour
- Nature of work to be handled by the contract labour
- Tenure of the proposed contract work
- Detail of convicted crime by the applicant, if any.
- Name and address of the agent of the contractor at the worksite.
- Number of contract labourers intended to be hired in the establishment
- The amount relating to license fee paid- Number of treasury Challan and date
Manual Procedure to Apply for CLRA License in Tamil Nadu
The steps below reflect the manual process of obtaining CLRA registration in Tamil Nadu:
- Applicant must visit their respective labour department.
- Head to the designated department and secure the application form
- Fill in the form with the mandatory information, ensuring no scope of error.
- Attach the documents as mentioned under the form.
- Send the completed filed application and documents to the respective labour department via post.
- The authority will vet the documents for errors and share the acknowledgement slip with the applicant.
- The concerned department will conduct the in-depth inspection, which may involve on-site vetting.
- Upon successful vetting, the authority will grant the CLRA license.
Online Process of Securing CLRA License in Tamil Nadu
The procedure below is the online process for securing CLRA License in Tamil Nadu;
- Visit the state’s labour department portal and sign up.
- Head to the service list and select the apt option concerning contractor labour license
- The Portal will open an e-form.
- Fill up the e-form and upload the mandatory documents in the format mentioned on the application.
- Once done, navigate the payment window for fee submission by clicking the “Pay Online” option.
- Upon successful payment, submit the form.
- Post submission, the e-form and documents will undergo inspection. Any errors noted during vetting will be shared with the applicant via the registered contact detail. The authority won’t stamp their approval until no error is found in the documents or e-form.
- The successful vetting will lead to the grant of the license.
The government legalized the process of contracting labour to various construction sites decades ago. The aim was to safeguard the interest of financially-aggrieved labourers from potential manipulation. Also, it compels contractors and principal employers to render basic amenities to working labourers till their working tenure. Those who opt to operate without a CLRA license in Tamil Nadu will be severely penalized.
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