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CLRA Licensing

Querist : Anonymous (Querist) 08 January 2011 This query is : Resolved 
Dear Experts, I would appreciate your considered response for this query re:CLRA.

Contract Labour (Regulation and Abolition) Act, 1970 – Section 2 (Definitions)
(2( b) a workman shall be deemed to be employed as "contract labour" in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer;

(c) "contractor", in relation to an establishment, means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor;

In the light of the above
Query: If a principal employer, pursuant to a service agreement with a contractor deploys service personnel at the principal employer's customers retail outlets - will it be covered by CLRA and registration applicable

Kirti Kar Tripathi (Expert) 08 January 2011
Yes, If the nature of work on which the contract labour is employed is directly related with the main functioning of principal employer whether it is in the main manufacturing process or work place or any other place from where he undertakes the work, the provisions of Contract Labour (Regulation and Abolition) Act, 1970 shall apply and he is liable to comply the said provisions..


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