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Compliance to labour licence terms & conditions

(Querist) 25 February 2011 This query is : Resolved 
As per section 25 (2) (ii) of "CONTRACT LABOUR (REGULATION & ABOLITION) ACT,1970 REGISTRATION",
"ii)The number of workmen employed as contract labour in the establishment shall not, on any day, exceed the maximum number specified in the licence;"

Doubt:

1. If the statute requiresthe Principle Employer (PE) to make sure that the total no of workmen employed by labor contractor does not exceed the No. of workmen for which licence is granted?
If yes, How can a PE track total no of workmen employed by the given contractor for all PE taken togather?

2 If it is found by govt authorities that the contactor employs more No. of workment than licenced No., then is there any specific penalty on PE (& not contractor)? If yes under which section?

Thanks.
Surendra Singh Chandrawat (Expert) 26 February 2011
penalties are stipulated in sec 22
Kirti Kar Tripathi (Expert) 27 February 2011
under the both contractor and principal employer is liable for prosecutions under the following provisions of the act.
23- Whoever contravenes any provision of this Act or of any rules made thereunder prohibiting, restricting or regulating the employment of contract labour, or contravenes any condition of a licence granted under this Act, shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both, and in the case of a continuing contravention with an additional fine which may extend to one hundred rupees for every day during which such contravention continues after conviction for the first such contravention.
24- Other offences.
If any person contravenes any of the provisions of this Act or of any rules made thereunder for which no other penalty is elsewhere provided, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both.
25- Offences by companies.
(1) If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of any director, manager, managing agent or any other officer of the company, such director, manager, managing agent or such other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.--For the purpose of this section –
(a) "company" means any body corporate and includes a firm or other association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
Ajay Bansal (Expert) 27 February 2011
See SLJ Manuals.
Jai Karan Nagwan (Expert) 27 February 2011
Dear Mr. Prithvi,

your query is confused and taking extraneous consideration.Please note one contractor can deploy workers with more than one PE. particular PE shall be concern with the manpower deployed with him not with any other PE. PE shall ensure that manpower does not exceed as permitted to the contractor in the License and to PE as per Registration Certificate.

If exceed as per RC / Lisence, both are liable to be prosecuted and penalty Max Rs 1000/


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