Everything you need to know about CLRA

The Contract Labour Registration Act (CLRA), 1970 is legislation driven towards the welfare of the contract labourers or employees so that they are not exploited, and also to introduce better and comfortable work conditions. It provides the guideline based on which the industry regulates the terms and conditions for the labour which are used from an outsourced contractor in any specific industry.

1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 5.00 out of 5)

One of the prime contributors for this blog, Expertise in Staffing and Recruitment, Content Strategist by Profession. A Music Lover & Traveller by Choice.

Get Connected with HR Trends

    Comments

    1. comment-author
      Raghav

      For all services and jobs that are outsourced and executed in premises other than those belonging to the principal employer, CLRA is not applicable. Only those carried out in the principal employer’s premises will be bound by CLRA- Can you please state the source for the same?

      1. comment-author
        Rishabh Ranjan

        Hi Raghav,

        Every state has its own contract labour advisory board. In other words, every state might have their own version of the rules and regulations for contract labour. Please refer to your state’s CLRA rules and regulations for more clarity.

    2. comment-author
      Amit

      Thanks for the write up, it helps a great deal.

      Just wanted to get a question clarified regarding applicability of CLRA on a Contractor. What if the contractor is employing less than 20 workers under one shop name but has employed more such workers (Thus taking his count beyond 20) under a different shop name?

      For instance, Mr. ABC a contractor employs 12 workers in his agency named XYZ. The same Mr. ABC also employs another 9 workers in another one of his agency named RST. Thus, total workers employed by Mr. ABC adding upto more than 20 workers.

      The idea is to evade the law and its provisions. Same contractor is employing workers under different shop names to avoid the threshold of 20 workers. Can such contractor be considered to be covered under CLRA? Will they need to obtain a licence under the Act?

      1. comment-author
        Rishabh Ranjan

        Hi Amit,

        Contract Labour License cannot be obtained directly by the contractor. The principal employer needs to register himself under the CLRA Act first, and then issue Form V to the contractor who wants to apply for a CLRA License. The count of applicable employees for obtaining CLRA will vary from state to state.

    3. comment-author
      Ramesh Kumar

      Thank you for the valuable information.
      Is there any case law or evidence to substantiate the applicability
      1. For services and jobs that are outsourced, is CLRA applicable?

      For all services and jobs that are outsourced and executed in premises other than those belonging to the principal employer, CLRA is not applicable. Only those carried out in the principal employer’s premises will be bound by CLRA.

      1. comment-author
        Rishabh Ranjan

        Hi Ramesh,

        Every state has its own contract labour advisory board. In other words, every state might have their own version of the rules and regulations for contract labour. Please refer to your state’s CLRA rules and regulations for more clarity.

    Post a Comment

    Your email address will not be published. Required fields are marked *

    Subscribe For Newsletter

    Subscribe to get the latest news and happenings around recruitment space

    Please hold while we process the request.