• Clarification about labor license

There is a glass manufacturing factory in Telangana called AGI. AGI is a very big factory manufactuing products over last decades. They engage 20-30 contractors or vendors for various activities. 

AGI signed a 'solar power purchase agreement' with a company called 'CSE' CSE has installed the solar plant on the roof tops of AGI and in their ground. CSE is selling solar energy to AGI. CSE has signed "Maintenance agreement" with 'Alectris' for maintaining the solar plant. 

Alectris will provide maintenance service to the solar plant located at AGI. Alectris has less than 20 employees in India. 

Alectris will depute 8 people at the factory to maintain the solar plant. Out of 8, 1 person is direct employee of Alectris and remaining 7 people are employed via a HR service agency called 'Samarthana'. The HR agency has more than 60 employees under them deputed to various clients like Alectris. 

In order to provide maintenance service to solar plant, AGI ask Alectris to submit 'labor license'. Since Alectris has less than 20 employees, we believe Alectris does not need to have labor license. But AGI thinks that irrespective of count of employees, Alectris is working in the factory premises of AGI. Hence it requires labor license. 

Should Alectris require labor license ?
Asked 4 years ago in Labour

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3 Answers

No need.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

Sir the license requirement is above 20 employees the same is not required. If employees employed in previous 12 months are 20 or more then only license required.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Cleint,

As per the act, minimum no. of workmen for whom labor license is required to be obtained is 20 and in your case no. is 60. License will require.

Fee- For 51 or more Workmen but less than 100 – Rs. 75,

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

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