Labour Laws

How to Get CLRA License in Karnataka? – An Overview

calendar03 Nov, 2022
timeReading Time: 4 Minutes
How to Get CLRA License in Karnataka? - An Overview

Per the CLRA Act, Karnataka, contractors must register under this Act to obtain a CLRA License in order to employ contract labour. The Contract Labour (Regulation & Abolition) Act was aimed at regulating the employment of contract labour at certain establishments as well as providing for its abolition under specific conditions. The Contract Labour (Regulation & Abolition), Karnataka Rules was later introduced in 1974. The Act applies to the entire state of Karnataka and to all units in Karnataka, with the exception of the Central Government. In 2020, the Karnataka Governor announced the Industrial Disputes and Certain Other Laws (Karnataka Amendment) Ordinance introduced certain significant changes to the CLRA, Karnataka, aimed at improving ease of business across the state as well as attracting investments for the same. In this write-up, we will go over the process for obtaining a CLRA License in Karnataka, the list of the necessary documentation, as well as important factors to keep in mind while registering for or holding a CLRA License in Karnataka. 

Responsibilities of a Contractor with a CLRA License in Karnataka

The following are the responsibilities of a Contractor with a CLRA License in Karnataka:

  1. Contractors are responsible for paying each of the contract labour under their employ within the specified period of time. The contractor is also responsible for ensuring the disbursement of wages in the presence of the primary employer’s representative for the same.
  2. Contractors are responsible for ensuring sufficient access to certain provisions provided for the contract labour under the Act. For example, restrooms, lavatories, urinals, etc.
  3. A contractor must provide an easily accessible and sufficiently equipped first-aid kit at all times during working hours, at every location where contract labour is employed by them. 
  4. Every contractor who falls under the purview of this Act must maintain sufficient records of all contract labour employed by the, the nature of the work that is performed by the contract labour, rates of wages paid as well as any other such relevant details.
  5. Every contractor must sufficiently have on display notices containing the details of work such as hours of work, nature of work and other such relevant details in every establishment in which contract labour under their employ is working.
  6. While the primary employer is liable to ensure full payment of wages in case a contractor fails to fulfil the same, the primary employer can recover this amount through either a deduction from a contract with the contractor or through debt.
  7. Contravention of any of the provisions under the Act or of any conditions of the License granted under the same can be punishable with imprisonment for a period of up to three months, or with a fine of up to a thousand rupees or both.

Criteria for Obtaining a CLRA License in Karnataka

Any and all contractors who employ or have employed, at any one time, twenty or more contract labourers for work in the state of Karnataka must register to obtain a CLRA License. No contractor who falls under this criteria can take up or execute any work through contract labour without the issuance of and in accordance with a CLRA License. Such a license may contain certain conditions pertaining to factors such as fixation of wages, hours of work and other essential amenities. 

List of Documents Required for CLRA License in Karnataka

The following crucial documents are required to be submitted with the application to obtain a CLRA License in Karnataka- 

Authentic identity card (ID) of the Applicant like EPIC, Driving License,

  • PAN card, Aadhar Card, Ration Card, Passport, Bank & Post Office Pass Books, Railway ID Card, Disabled-ID Card.
  • Certified copy of the Agreement /Contract between the Principal Employer and the Contractor, if any.
  • Copy of the Registration or Challan of ESI or PF or ST or Registration Certificate either under Factories Act/Shop Act, VAT, TIN.
  • List with full address & identity card of Partners or Directors or Owners or Occupiers or Proprietors of the Organisation.
  • Applicants or Authorised Signatories full name, address, designation with Seal.
  • Authorisation /Power of Attorney Letter ( if applicable)
  • Declaration regarding non-employment of child labour
  • Copy of Memorandum of Association (MOA) or ROC in case of
  • Private / Public Companies.
  • Duly filled in & signed Form V (preferably on the letter-head of the Principal Employer).

Online Process of Securing CLRA License in Karnataka

The procedure below is the online process for securing CLRA License in Karnataka:

  • First, the applicant must visit the state’s labour department portal & sign up.
  • Head to the service list & select the apt option concerning contractor labour license
  • The Portal will open an e-form[1] (application).
  • Fill up the e-form and upload the mandatory documents in the format mentioned on the application.
  • Once done, navigate the payment window for the submission of application fee by simply clicking the “Pay Online” option.
  • Upon successful payment, submit the application form online.
  • Post submission, the e-form & vital documents will undergo inspection. Any errors or mistakes noted during vetting will be shared with the applicant via the registered email id and mobile number. The authority won’t stamp their approval until no error or mistake is found in the documents or e-form.
  • The successful vetting will lead to the issuance of the CLRA license.

Conditions for Revocation of CLRA License in Karnataka

Per the licensing officer’s discretion, and after allowing the license holder an opportunity to present their own case, may revoke or suspend the License if- 

  • A license has been granted through misrepresentation or suppression of material fact
  • The holder of the License has failed to comply with the conditions that the License was granted under, or has contravened any of the provisions of this Act, without reasonable cause. 

Conclusion

The Contract Labour (Regulation and Abolition) Act exists to protect Contract Labour from being exploited by primary employers and contractors alike. It ensures contract labour wage security and better working conditions. Any and all contractors who fall under the purview of the CLRA Act, Karnataka Rules, must obtain a license in order to employ contract labour. They must comply with the rules and provisions set up under this Act in order to obtain and maintain their License. 

Read Our Article:A Brief Introduction to the CLRA Act Karnataka

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