Service Details

(CLRA) Labour License

Contract Labour Regulation and Abolition(CLRA)

The Contract Labour Regulation and Abolition Act, 1970 (CLRA) regulates the employment of contract labour in certain establishments, aiming to provide better working conditions and protect the rights of contract workers. It also empowers the government to abolish contract labour in certain circumstances where it deems it necessary. The primary objective of the CLRA is to protect the interests of contract workers by ensuring fair wages, working conditions, and the provision of various welfare benefits. It also seeks to regulate and, in some cases, abolish the use of contract labour where it is deemed exploitative or unjust.

Benefits

  • Worker Protection -

Fair Wages : Ensures that contract workers receive fair wages and are paid promptly for their work.
Safe Working Conditions : Mandates that employers provide safe and healthy working conditions for contract labourers.
Welfare Benefits: Requires the provision of welfare benefits such as canteen facilities, restrooms, and first aid.  

  • Regulation and Compliance -

Standardised Practices : Establishes standardised practices for the employment of contract labour, reducing the risk of exploitation.
Legal Framework : Provides a clear legal framework for addressing disputes and ensuring compliance with labour laws.

  • Abolition of Exploitative Practices -

Abolition Power : Grants the government the authority to abolish contract labour in specific situations where it is considered to be in the interest of workers.

  • Employer Accountability -

Liability for Compliance : Holds employers accountable for adhering to the regulations concerning contract labour, ensuring fair treatment and adherence to legal standards.

Documents

  • Registration Certificate -

For Employers : Establishments employing contract labour must obtain a registration certificate from the appropriate authority, usually the labour commissioner.

  • License -

For Employers : Establishments employing contract labour must obtain a registration certificate from the appropriate authority, usually the labour commissioner.

  • Employment Agreement -

Contract Details : An employment agreement or contract should detail the terms of employment, including wages, working hours, and other conditions of work.

  • Wage Slips -

Proof of Payment : Employers must provide wage slips to contract workers as proof of payment and to ensure transparency in wage distribution

  • Compliance Records:

Documenting Compliance : Records of compliance with the Act’s provisions, such as safety measures, welfare facilities, and attendance, should be maintained.

  • Annual Returns -
Reporting Requirements: Employers must submit annual returns regarding contract labour employment to the labour department.

Process

  • Determination of Applicability -
Assess Applicability: Determine if the Act applies to the establishment by considering factors such as the number of contract workers and the nature of work.
  • Registration and Licensing:

Apply for Registration: The principal employer must apply for registration from the labour commissioner.
Obtain Contractor’s License: Contractors must apply for and obtain a license to employ contract labour

  • Compliance with Legal Requirements:

Provide Working Conditions: Ensure that contract workers are provided with safe working conditions and welfare facilities as stipulated by the Act.
EnsureFair Wages: Comply with wage regulations, including timely payment and adherence to minimum wage standards.

  • Maintain Documentation:

Keep Records: Maintain necessary documentation such as wage slips, compliance
records, and employment agreements

  • Regular Inspections:
Facilitate Inspections : Allow inspections by labour authorities to ensure compliance with the CLRA provisions.
  • Address Complaints and Disputes:
Grievance Redressal: Set up a mechanism for addressing complaints and disputes raised by contract workers.
  • Abolition of Contract Labor (if applicable):
Government Orders: If directed by the government, phase out contract labour in specific areas where abolition has been mandated.

FAQs

Common Questions About Our Consulting Services

What is a Contract Labour License?

CLRA is a labor law in India that regulates the employment of contract laborers. It aims to protect their rights, ensure fair employment practices, and abolish the exploitation of contract labor.

Any contractor employing 20 or more workers in any establishment needs to obtain a Contract Labour License as per the Contract Labour (Regulation and Abolition) Act, 1970.

A contractor can apply for a Contract Labour License by submitting the required forms and documents to the appropriate licensing authority, usually the Labour Commissioner of the state where the establishment is located.

The validity of a Contract Labour License is generally one year, but it can be renewed annually upon submission of the required documents and renewal fees.

No,aContract Labour License is non-transferable. Each contractor must obtain their own license for employing contract labour.

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