Without a legal CLRA license, contractors are prohibited from legally supplying the requisite number of contract workers for certain designated tasks. The CLRA license is only given if procedural regulations are met. So, the contractors must comply with a strict number of procedures. It starts with the submission of the properly filled application form accompanied by a list of the necessary supporting documents (security deposit proof, certificate from principal employer). The Officer Licensing after verification of the required roles assigns the licenses which hold conditions i.e; renewal of periodic licenses for 2 years.
Understanding the CLRA Act
The CLRA Act regulates the employment of contract laborers in certain establishments and protects their interests. As per the Act, any organization or company that has employed 20 or more contract laborers on any day in the past 12 months needs to be registered under the CLRA Act.
The registration mandates displaying details of the work being carried out as well as the maximum number of laborers permitted to work. It aims to ensure that the contractors comply with provisions relating to the welfare and health of the contract workers. Additionally, it makes the principal employer responsible for providing crèches, restrooms, first-aid facilities etc. if the contract does not arrange for the same. The law lays down the requirements for fair working conditions including fixed work hours, periodic leaves and timely wages for the contract laborers. Overall, the CLRA Act seeks to abolish contract labor in certain hazardous occupations while regulating their working in other establishments.
Documents Required for CLRA Licence Applicability
These are the documents required for CLRA registration:
1. Legal Status Proof: This establishes the legal identity of the entity such as certificate of incorporation, partnership deed etc.
2. Address Proof: Documents verifying the registered and official address of the company or organization including lease deeds or electricity bills.
3. PAN Card: Copy of the Permanent Account Number (PAN) card allotted to the establishment.
4. Provident Fund Code Allotment Letter: This specifies the PF code number issued to the company for making employee PF contributions.
5. Allotment Letter of Employee State Insurance (ESI) Act: Specifies ESI registration details.
6. Bank Challan for Registration Fees: Includes the payment receipt.
7. Proof of Business Activity: Documents evidencing the business operations such as license, trade certificate etc.
Additionally, the Registering Officer may demand other documents like No Objection Certificate from local authorities, ITRs of the company, names of management etc. on a case to case basis.
Submitting the requisite documents in an authentic manner is vital for obtaining CLRA registration.
Procedure for CLRA Registration
The procedure for CLRA registration involves:
The Contract Labour (Regulation and Abolition) Act, 1970 mandates the principal employers who engage contract laborers to register their establishment under the Act, by following the outlined procedure.
Step 1:
Obtain the application Form I meant for CLRA registration from the relevant Regional Labour Commissioner office. This specifies details like the nature of work, maximum number of laborers to be employed, and other particulars of the establishment.
Step 2:
Fill in the requisite details in the registration application form accurately as they would be used for granting the registration certificate. The officer may verify details through inspection.
Step 3:
Submit the duly-filled application Form I at the office of the Registering Officer of the region the establishment is located in. This is along with the demanded registration fees to be paid through bank challan or demand draft.
Step 4:
Provide additional documents if asked for by the Registering Officer such as lease deed, list of directors, profit and loss statements, etc. that authenticate the establishment details provided.
Step 5:
Allow and facilitate inspection as required by the Registering Officer at the workplace to verify details in the application with the on-ground reality.
Step 6:
Once satisfied with the application, documents and inspection report, the Registering Officer issues a Certificate of Registration in a prescribed format.
Step 7:
The establishment needs to display the registration certificate with details like maximum contract workers allowed, nature of work performed, license validity etc. prominently at the premises.
Step 8:
Intimate the Registering Officer of any significant changes in the nature of work that impact the engagement of contract laborers through a written request.
Step 9:
CLRA license renewal well in advance before expiry by submitting Form I along with the renewal fees. The procedure is much simpler than the initial application.
Following this registration process and displaying the certificate ensures the principal employer complies with CLRA Act provisions. It also makes them accountable for contract labor welfare at the establishment. Violation can attract fines or other punishment.
Final Thoughts
The CLRA Act, 1970 makes it mandatory for any contractor who supplies contract labor to establishments covered under the Act to obtain a license from the designated Licensing Officer. This license authorizes the contractor legally to supply the requisite number of contract workers for certain designated tasks.
FAQs
1. What is a CLRA license, and who needs it?
A CLRA registration regulates employment of contract laborers in many establishments and protects their interests.
2. What are the key benefits or advantages of obtaining a CLRA license online for businesses?
The key benefits include legal authorization for contractors to carry on their business as per provisions of the Act.
3. What are the legal implications of operating without CLRA registration?
Operating without a CLRA registration invokes penalties under the Companies Act.
4. How can Startupfino assist businesses in obtaining CLRA registration for their operations?
Startupfino helps businesses obtain a CLRA license through online application, eligibility evaluation, and document filing facilitation, ensuring a seamless process for clients.
5. Does Startupfino offer guidance on determining the CLRA license applicability requirements to a business?
Yes, Startupfino offers guidance on determining the applicability of CLRA registration requirements to a business.
6. Can Startupfino provide support for online application of CLRA licenses, ensuring a seamless process for clients?
Yes, Startupfino provides support for the online application of CLRA licenses, ensuring a efficient process for clients.
