CLRA Registration & Licensing: Eligibility & Benefits - Vakilsearch

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CLRA Registration & Licensing Process

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FAQs on CLRA Registration & Licensing

What is the Contract Labour (Regulation and Abolition) Act 1970?

The Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act) is an Act of the Parliament of India enacted to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

When does the CLRA Act apply?

The CLRA Act applies to any establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.

What is contract labour?

Contract labour is a person who is employed by or through a contractor to do any work in an establishment other than the work of that contractor in that establishment.

Who are the principal employers and contractors?

The principal employer is the person who owns or manages the establishment, and the contractor is the person who employs the contract labour.

What are the registration and licensing requirements under the CLRA Act?

Every principal employer who employs contract labour is required to obtain a registration certificate from the Chief Labour Commissioner (Central) or any other officer authorised by him on this behalf. The contractor is also required to obtain a license from the Chief Labour Commissioner (Central) or any other officer authorised by him on this behalf.

What are the penalties for violations of the CLRA Act?

The penalties for violations of the CLRA Act include imprisonment, fine, or both. Some of the common violations include:

Failure to obtain registration and license

Employing contract labour in prohibited establishments

Contravention of any condition of registration or license

Wilful neglect of the provisions of the Act

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