• Applicability of Labour License

Dear Sir,

We are a Facilities Management Company. In almost all tenders my company wishes to fill, there is a requirement of a valid labour license. However as per the notification of the Govt. the minimum number of labours must be 50 and that too at one site/contract for valid labour license to be availed. Is my understanding correct? Also is there a notification stating that the said labours should all be at only 1 site/contract? I can use this while submitting tenders. Your help would be deeply appreciated.
Asked 1 year ago in Business Law from Mumbai, Maharashtra

1) Government of Maharashtra vide its notification published in the Maharashtra Government Gazette on 5 January 2017 has announced that the CLRA Act will now be applicable to (i) every establishment in the State of Maharashtra in which 50 (fifty) or more workmen are employed or were employed on any day in the preceding 12 (twelve) months; (ii) every contractor in the State of Maharashtra who employs or who employed on any day in the preceding 12 (twelve) months 50 (fifty) or more workmen (Amendment).

Prior to the Amendment, the limit for applicability of the CLRA Act in the State of Maharashtra was limited to 20 (twenty) or more workmen.

Ajay Sethi
Advocate, Mumbai
68821 Answers
4143 Consultations

5.0 on 5.0

This is my response to you:

1. The minimum number of people required are 20: https://clc.gov.in/clc/faqs/what-minimum-no-workmen-whom-labour-license-required-be-obtained

2. You can check this website as well: https://mahakamgar.maharashtra.gov.in/lc-license-contract-labour.htm

3. Also the site mentioned at point No.2 you can fill the tender process online.

Gowaal Padavi
Advocate, Mumbai
1841 Answers
2 Consultations

5.0 on 5.0

Dear Client,

License was required where 20 or more labors were engaged, which is now amended to 50.

And employing of labors in "establishment" is used in the act, which is 1 site , which can be office or place where any industry, trade, business, manufacture or occupation is carried on

Yogendra Singh Rajawat
Advocate, Jaipur
14442 Answers
19 Consultations

4.6 on 5.0

Dear,

The minimum no. of labors must be not below 50 . yes notification is right and it means

1 office,site and any place of work.

Tarun Agarwal
Advocate, Jaipur
769 Answers
3 Consultations

4.9 on 5.0

Dear Client,

The amendment was carried out in Jan 2017 by Govt of Maharashtra. The amendment states that establishments or contractors operating in the State of Maharashtra and who employ less than 50 (fifty) workmen as contract labour, will not be required to register / obtain a license under the CLRA Act in the State of Maharashtra.

(i) every establishment in the State of Maharashtra in which 50 (fifty) or more workmen are employed or were employed on any day in the preceding 12 (twelve) months;

(ii) every contractor in the State of Maharashtra who employs or who employed on any day in the preceding 12 (twelve) months 50 (fifty) or more workmen (Amendment).

In the amendment nowhere PER SITE or PER CONTRACT word is used.

Further as per my interpretation- each contractor who has more that 50 labours requires to have license.

Expert Jurist LLP

Jyotishwar Bhosale
Advocate, Navi Mumbai
15 Answers
1 Consultation

5.0 on 5.0

Dear Client,

As per law, you need to have separate Labour License for each site or project.

Jaswant Singh
Advocate, Gurugram
582 Answers
2 Consultations

4.8 on 5.0

you are required 20 labourers to obtain the license . One site or if different site under same contract of principle employer.

Yes license can be used for tenders

further check the complete procedure on https://mahakamgar.maharashtra.gov.in/lc-license-contract-labour.htm

Shubham Jhajharia
Advocate, Ahmedabad
20743 Answers
81 Consultations

5.0 on 5.0

If the conditions for the tender are demanding the labor license, you cannot challenge the condition based on your real situation.

If you dont fulfill the condition then you may not be eligible for getting this tender.

T Kalaiselvan
Advocate, Vellore
58651 Answers
743 Consultations

5.0 on 5.0

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