Any person who employs or engages contract workers in India is required to obtain a CLRA license. This includes contractors, principal employers, and sub-contractors.
In the state of Karnataka, India, anyone who wants to engage in the business of supplying or employing contract labour must obtain a CLRA (Contract Labour Regulation and Abolition) license from the Labour Department. The CLRA license in Karnataka is mandatory for any contractor who supplies or employs more than 20 workers.
Who Needs a CLRA License?
The following individuals or entities require a CLRA license in Karnataka:
- Contractors who supply or employ more than 20 workers
- Principal employers who engage contractors for the supply or employment of more than 20 workers
Documents Required for CLRA License Application
The following documents are required for the CLRA license application in Karnataka:
For Contractors:
- Application form (Form VI)
- PAN card copy
- Aadhaar card copy
- Address proof (ration card, passport, bank passbook, railway ID, disabled ID)
- Partnership firm registration or company registration certificate
- Copy of agreement or contract between the principal employer and the contractor
- Proof of registration under the Shops and Establishments Act
- Proof of payment of ESI and PF contributions
- Bank statement for the last six months
- Security deposit in the form of a demand draft or bank guarantee
For Principal Employers:
- Application form (Form V)
- PAN card copy
- Aadhaar card copy
- Address proof (ration card, passport, bank passbook, railway ID, disabled ID)
- Partnership firm deed or company registration certificate
- Proof of registration under the Shops and Establishments Act
- Details of the contractor engaged for the supply or employment of contract labour
Application Process for CLRA License
The CLRA license application can be submitted online through the E-Labour portal of the Karnataka Labour Department. The following steps are involved in the application process:
- Create an account on the E-Labour portal
- Select the option “Apply Online.”
- Choose the type of license (Contractor or Principal Employer)
- Fill out the application form
- Upload the required documents
- Make the payment of application and security deposit fees
- Submit the application
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Inspection and Grant of License
Once the application is submitted, the Labour Department will conduct an inspection of the contractor’s establishment or the principal employer’s premises. If the inspection is satisfactory, the license will be granted. The license is valid for one year and can be renewed for subsequent years.
Renewal of CLRA License
The CLRA license can be renewed online through the E-Labour portal. The application for renewal must be submitted at least 30 days before the expiry of the current license.
Penalties for Non-compliance
Failure to obtain a CLRA license or violating the provisions of the Contract Labour (Regulation and Abolition) Act, 1970, can result in the following penalties:
- Imprisonment for up to three months or a fine of up to ₹5,000, or both.
- For subsequent offences, imprisonment for up to six months or a fine of up to ₹10,000, or both.
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Exemptions from CLRA License
The following are exempted from obtaining a CLRA license:
- Establishments employing less than ten contract workers.
- Establishments engaged in agriculture.
- Establishments engaged in construction work where the cost of the project does not exceed five lakhs.
FAQs:
1. How is the threshold for applicability determined under CLRA?
The threshold for CLRA applicability is based on the number of contract laborers employed on any day of the preceding 12 months. If an establishment or contractor employs 20 or more contract laborers, CLRA is applicable.
2. Can contract laborers be engaged for perennial nature of work under CLRA?
No, CLRA prohibits engaging contract labor for jobs of perennial nature. These are tasks that are continuous and essential to the industry, and regular employment is deemed more suitable.
3. What is the significance of obtaining a CLRA license for contractors?
Obtaining a CLRA license is mandatory for contractors. It signifies compliance with labor laws and ensures that the contractor adheres to regulations regarding wages, working conditions, and other statutory benefits for contract labor.
4. How often must contractors submit returns under CLRA, and what information is included?
Contractors are required to submit annual returns in the prescribed format to the licensing officer. The returns include details about the number of contract laborers employed, their nature of work, and the facilities provided to them during the year.
5. Are there specific records that employers must maintain under CLRA?
Yes, employers covered under CLRA must maintain records, including muster rolls, wage records, and records of deductions made. These records must be preserved for a specific period as per the statutory requirements.
6. Can a principal employer be held liable for the non-compliance of a contractor under CLRA?
Yes, a principal employer can be held liable for the non-compliance of a contractor under CLRA. The principal employer is responsible for ensuring that the contractor follows all statutory provisions related to contract labor.
7. What is the procedure for obtaining approval for the layout plan under CLRA?
Employers must submit a layout plan of the premises to the licensing officer for approval. This plan should include details about the arrangements made for the contract laborers, such as restrooms, canteens, and first aid facilities.
8. How are wages determined for contract laborers under CLRA?
Wages for contract laborers must be equivalent to the wages of workers employed directly by the principal employer for similar work. Any deductions made should be in accordance with the provisions of CLRA.
9. Can a contractor hire contract laborers without obtaining a license under CLRA?
No, it is illegal for a contractor to engage contract laborers without obtaining a valid license under CLRA. Operating without a license can lead to penalties and legal consequences.
10. What steps can an employer take to ensure compliance with CLRA?
Employers can ensure compliance by regularly reviewing and updating employment records, providing necessary facilities to contract laborers, obtaining and renewing licenses, and staying informed about any changes in CLRA regulations.
Conclusion
The CLRA license is an important requirement for contractors and principal employers who engage in the business of supplying or employing contract labour in Karnataka. Obtaining the license and complying with the provisions of the Contract Labour (Regulation and Abolition) Act ensures that the rights and interests of contract labour are protected.
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