Applicability of Contract Labour(Regulation & Abolition) Act.
An agreement was entered into between ABC company and XYZ firm (who are into production management) for production work. The raw materials, the specifications and also the machines were provided by the ABC company to XYZ firm at the ABC company factory premises. The Occupier of the ABC company is one of the Directors and the Factory Manager is one of the officer of the ABC company. The rates were fixed for the work. XYZ has full rights to recruit persons he likes to carry out the work. The labour officer on his visit to the factory premises of the ABC company says that provisions of Contract Labour (Regulation & Abolition) Act attracts. It is a contract work. The contention of the ABC company is that it is a business-to-business agreement and thus provisions of Contract Labour (Regualtion & Abolition) Act does not attract here.
Sir, please let us know
(1) whether the provisions of Contract Labour (Regulation & Abolition) Act is applicable to ABC company in this scenario?
(2) Does it amount to outsourcing of work?
Kindly enlighten us on this issue.
From India, Bangalore
An agreement was entered into between ABC company and XYZ firm (who are into production management) for production work. The raw materials, the specifications and also the machines were provided by the ABC company to XYZ firm at the ABC company factory premises. The Occupier of the ABC company is one of the Directors and the Factory Manager is one of the officer of the ABC company. The rates were fixed for the work. XYZ has full rights to recruit persons he likes to carry out the work. The labour officer on his visit to the factory premises of the ABC company says that provisions of Contract Labour (Regulation & Abolition) Act attracts. It is a contract work. The contention of the ABC company is that it is a business-to-business agreement and thus provisions of Contract Labour (Regualtion & Abolition) Act does not attract here.
Sir, please let us know
(1) whether the provisions of Contract Labour (Regulation & Abolition) Act is applicable to ABC company in this scenario?
(2) Does it amount to outsourcing of work?
Kindly enlighten us on this issue.
From India, Bangalore
Dear Friend,
The provisions of the Contract Labour Act applicable where the employment of contract labour exceeds the statutory limit (as per State Rules in this case) in any day during the preeceding 12 months and not depend on the agreeement or arrangement between two companies.
Regards
From India, Vadodara
21The provisions of the Contract Labour Act applicable where the employment of contract labour exceeds the statutory limit (as per State Rules in this case) in any day during the preeceding 12 months and not depend on the agreeement or arrangement between two companies.
Regards
From India, Vadodara
If you read this statement "The raw materials, the specifications and also the machines were provided by the ABC company to XYZ firm at the ABC company factory premises" CLRA applies in this case, because it amounts to outsourcing.
Further the Employees can go to court can claim that they are the Employees of ABC company, because it is managmed by the Employees of ABC Company and there is clear cut demarcation between the two companies.
From India, New Delhi
Further the Employees can go to court can claim that they are the Employees of ABC company, because it is managmed by the Employees of ABC Company and there is clear cut demarcation between the two companies.
From India, New Delhi
Dear MANJESHSGR
You have to maintain all statutory registers under contract labour R&A act 1971.including labour license.
if you engaging inter state workers then you have to maintain interstate migrant workers license with you.
have to Register under Building and other construction workers act and maintain welfare id cards for workmen you engaged.
have to file annul returns to labour inspector ever year.
Regards,
Ratna
From India, Nalgonda
You have to maintain all statutory registers under contract labour R&A act 1971.including labour license.
if you engaging inter state workers then you have to maintain interstate migrant workers license with you.
have to Register under Building and other construction workers act and maintain welfare id cards for workmen you engaged.
have to file annul returns to labour inspector ever year.
Regards,
Ratna
From India, Nalgonda
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Contract Labour Act.zip
SELF-CERTIFICAT E PROFORMA UNNDER CONTRACT LABOUR (R&A) ACT, 1970.doc