Registration and Licensing, Penal provisions

By | December 24, 2020

Registration and Licensing

The Act applies to the Principal Employer of an Establishment and the Contractor where in 20 or more workmen are employed or were employed even for one day during preceding 12 months as Contract Labour. For the purpose of calculating the number, contract labour employed for different purposes through different contractor has to be taken into consideration. This Act does not apply to the Establishments where work performed is of intermittent or seasonal nature.

Registration and Licensing

If a Principal Employer or the Contractor falls within the vicinity of this. Act then, such Principal Employer and the Contractor have to apply for Registration of the Establishment and License respectively. The Act also provides for Temporary Registration in case the Contract Labour is hired for a period not more than 15 days. Any change occurring in the particulars specified in the Registration or Licensing Certificate needs to be informed to the concerned Registering Officer within 30 days of such change.

From combined reading of Section 7 and Rules 17 & 18 of the Contract Labour (Regulation and Abolition) Central Rules, 1971, it appears that the Principal Employer has to apply for registration in respect of each establishment. Other important point to note that a License issued for One Contract cannot be used for entirely different Contract work even though there is no change in the Establishment.

Penal provisions

Section 9 of the Act provides that the Principal Employer, to whom this Act is applicable. Fails to get registered under the Act, then such Principal Employer cannot employ contract labour. It also appears that if the Establishment not registered. Or if the Contractor not licensed then the contract labour shall be deemed to be the direct workmen. The Establishment shall be liable for the wages, services and facilities of the contract labour etc. For contravention of the provisions of the Act or any rules made there under, the punishment is imprisonment for a maximum term up to 3 months and a fine up to a maximum of Rs.1000/-. t.

Responsibilities of Penal provision

The Act enjoins Joint and Several responsibility on the Principal Employer and the Contractor. The Principal Employer should ensure that the contractor does the following:

  • Pays the wages as determined by the Government, if any, or;
  • Pays the wages as may be fixed by the Commissioner of Labour.
  • In their absence pays fair wages to contract laborer.
  • Provides the following facilities:
  • Canteen (if employing 100 or more workmen in one place) and if the work is likely to last for 6 months or more.
  • Rest rooms where the workmen are required to halt at night and the work is likely to last for 3 months or more.
  • Requisite number of latrines and urinals separate for men and women.
  • Responsibilities
  • Drinking water.
  • Washing.
  • First Aid.
  • Crche.
  • Maintains various registers and records, displays notices, abstracts of the Acts Rules etc.
  • Issues employment card to his workmen, etc.

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