Contract Labour (Regulation & Abolition) Act, 1970 (CLRA)

The Contract Labour (Regulation & Abolition) Act, 1970 (CLRA) was enacted to regulate the employment of contract labour in certain establishments. Given that almost every sector employs contract labour, this Act plays a crucial role in ensuring that their working conditions are fair and regulated. The CLRA provides a framework for the registration, licensing, and regulation of establishments and contractors, outlining the responsibilities of the government, principal employers, contractors, and contract labourers.

• Stakeholders as per CLRA:

1. Government

2. Principal employer / Primary Employer

3. Contractor

4. Contract labourer

• Applicability:

1. It applies to establishments registered in India, ever employing 50 or more (amended from 20 to 50 as per Maharashtra Government Gazette on 5 January 2017) contract labours on a day in the past 12 months.

2. It applies to all contractors registered in India, whoever employ 50 or more (amended from 20 to 50 as per Maharashtra Government Gazette on 5 January 2017) contract labours on a day in the past 12 months.

• Exemptions:

1. Establishments that carry out work that is casual or intermittent in nature, which is not exceeding 120 days in the preceding 12 months. However, seasonal work shall not be considered as intermittent in nature.

2. Establishment which perform seasonal work for less than 60 days in a year.

3. Establishments located in special economic zones.

Herein, the primary employer needs to have a registration certificate as per section 7 of the act. In the absence of such certificate, they cannot engage contract employees.

The contractor supplying contract labour to the principal employer needs to obtain a CLRA License as per section 12 of the Act.

• Types of CLRA Registrations / licenses:

1. Principal Employer Registration – Form II

2. Contractor licensing

a. Form VI

b. valid for 12 months

c. Renewal must be done before 30 days of the license expiry in form VII

3. Temporary certificate of registration and licensing

a. For immediate and short term requirement of contract labour for not exceeding 15 days

b. Form VIII and form X to be filed by principal employer and contractor respectively with an affidavit

• Steps for registration:

Online filing of application must be made through www.shramsuvidha.gov.in platform

1. For Principal Employer Registration

The application for registration contains the following:

• • Principal employer details
  • Establishment details
  • Workplace details
  • Manager details
  • Contractor details
  • Contract work details
  • Attachments

Registration fee:

No. of contract labourer	Amount
Upto 50	150
Exceeds 50 but doesn’t exceed 100	300
Exceeds 100 but doesn’t exceed 200	600
Exceeds 200 but doesn’t exceed 400	1200
Exceeds 400	1500

2. For Contractor Licensing

The application for registration contains the following:

• • Contractor details
  • Establishment / principal employer details
  • Contract work details
  • Attachments

License fee:

No. of contract labourer	Amount
Upto 50	37.5
Exceeds 50 but doesn’t exceed 100	75
Exceeds 100 but doesn’t exceed 200	150
Exceeds 200 but doesn’t exceed 400	300
Exceeds 400	375
Security fee	90 per contract labourer

Preliminary Documents for registration:

1. Registration / licence application form

2. Trade License / certificate of registration

3. AOA / MOA / Partnership deed

4. Identity proof

5. Factory license, in case of a factory

6. supplementary documents, if any, as required by the authority

7. Valid work order for contractors

8. Certificate issued by principal employer in form V for contractor

• Returns

1. Half Yearly Return as per Form XXIV to be filed by the contractor within 30 days of close of half year

2. Annual Return to Filed by Principal Employer in Form XXV

Timely and appropriate compliance by the establishments with the CLRA Act ensures credibility for the organisation in abiding by the social welfare laws. It enhances co-operation between employers, contractors and government to regulate, oversight and improve the working conditions of these contract labourers and prevent their exploitation,