LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

ram (Head HR)     09 September 2013

Contract labour (r&a) act

Dear Forum Members, Happy Ganesh Chaturthi.

We are an MNC based in Daman (UT) and engaged in manufacturing activities. The company deploys around 500 hundred workers(direct) through two companies - one is a partnership firm and the other one is a Pvt ltd company. Other than Minimum Wages compliance, we pay PF, Gratuity money, weekly off pay and others to these company.  Please advise:

1. Are these workers be called contract workers?

2. If 'no', can any of you pl share supreme court order in this regard?

3. In this situation, what are the legal binding on our company???

4. If we don't take them on our company roll, are we violating CL(R&A) act??

Request guide.

Thanks & regards,

Ram Singh





 4 Replies

darshana sawant (associate consultant)     10 September 2013

dear mr singh


Your query is not clear.  Where are the employees working ?  Are they on contractual employment on some other co. while being on your rolls?  Pls clarify, so that suitable reply can be given.


ram (Head HR)     10 September 2013

Hi Darshana,

Thanks for your clarification.

These workmen are working in our factory. However, they are on the roll of two companies as stated above - one is a Pvt Ltd company registered under Company's Act and the other one is a proprietary firm and our company does not have any direct connection with these companies. Hope I am clear now.


Ram Singh

maheshkumar (ENGINEER PROJECT)     10 September 2013

hi ,

    I am Mahesh working as engineer in a pvt ltd manager did not gave proper respect and also spoke harshly and vogorly.please gave some tips how to approach in labour court.

Sasidharan (Retired Labour Commissioner (Central))     10 September 2013

From the informations given by you under the Contract Labour (Regulation  & Abolition Act), your Company is the Principal Employer and the firms engaged by you are contractors. The Principal Employer has to obtain a Registeration Certificate from the Registering Officer of the Labour Department and the Contractors have to obtain Licence from the Licensing Officer of the Labour Department if the number of contract labour engaged in the establishment of the Principal Employer and Contractor exceeds 20 or more on any day of the preceeding 12 months. Responsibility of payment and other service conditions of the Contract Labour are with the concerned contractors under the Act. However if the contractors failed to pay wages or other benefits to the Contract Labour within the prescribed time, it becomes statutorily mandatory for the Principal Employer to fulfil it and deduct the sum from the bills of the Contractors. For this purpose the Principal Employer has to authorise one of his official to witness disbursement of wages by the Contractors to their labour on the date of disbursement of wages to be intimated to the Principal Employer by the Contractors.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register