The Contract Labour (Regulation and Abolition) Act, of 1970 is a vital piece of legislation, aimed at regulating the employment of contract labor in specified establishments spread across India. It takes care of ensuring fair treatment of contract workers by providing for the registration of an establishment that employs more than 20 contract workers and provides legal measures for protecting the rights of workers with the provisions to be put forward against the legal structure of using contract labor. Interesting!
The CLRA Act is over 50 years old, yet still one of the most crucial labor laws India has today! It was enacted way back in 1970.
The registration would help you comply with labor laws in India. Avoid penalties and fines resulting from non-registration.
The act guarantees fair wages, health, safety, and rest periods. All these rights shall be protected on your part after getting registered under the Act.
Not registering leads to serious repercussions like penalties or imprisonment. Thus, you do not risk it by registering.
All registered establishments can access several government schemes, and your business gets all those additional benefits.
By strictly adhering to the law, you are indicating to everyone that you care about workers' welfare, which reflects on your business in the minds of customers, investors, and the public at large.
All the required records and registers help increase your business's operational efficiency.
Complying with safety and health standards protects your business from the liabilities that may arise from accidents or injuries while working.
Companies that comply with CLRA avoid penalties and position themselves as ethical and responsible employers. Some businesses report an increase in employee loyalty and satisfaction after registration!
The TNPCB approves new industries in two stages:
Your establishment must employ 20 or more contract workers on any given day during the financial year.
The establishment must be based in India and engaged in an industry, trade, or business listed under the CLRA Act’s schedule.
Government establishments are exempt from the requirement.
Certain establishments are exempt from the CLRA Act, including:
Establishments that employ contract workers for less than 15 days annually.
Establishments involved in seasonal work or where the work is incidental to the main establishment.
Organizations based in Special Economic Zones (SEZ).
When applying for CLRA registration, make sure to gather the following documents:
Trade License
AOA and MOA (for companies) or Partnership Deed
Factory License
Proof of address and identity
Proof of contract labour employment
The Principal Employer bears considerable responsibilities under the CLRA Act. Among them are the registration with the concerned government authority, safety and health of workers, essential amenities, restrooms, canteens, and creches, and the payment of just wages and other benefits to the contract workers. Principal Employers are the ones who maintain a balance between workers' rights and organizational efficiency.
It is not just a legal obligation but a great way to enhance employee morale and brand reputation!
The following are the compliance requirements every Principal Employer is to fulfill:
It has to be registered with the local authority.
Facilities for amenities, like a canteen, toilets, and crèches.
Provide health & safety with the necessary equipment and train them on that.
Updated registers should be kept, and returns as may be submitted to the Act.
You should apply for CLRA registration as soon as you begin employing contract labour. It is a legal requirement, and failing to register could lead to penalties like fines or even imprisonment.
The CLRA Act does not apply in certain cases, such as:
Casual or intermittent work done for fewer than 120 days in a year.
Work done by apprentices under the Apprentices Act, 1961.
Seasonal work lasting fewer than 60 days annually.
Work-related to the construction or maintenance of buildings or machinery where fewer than 20 workers are employed.
Failure to comply with the CLRA Act can result in:
Imprisonment for up to three months, or a fine of up to ₹1,000, or both.
Employing contract labor in prohibited establishments may result in six months imprisonment or a fine of up to ₹2,000.
Contravention of conditions in the registration/license may lead to a fine or imprisonment.
Wilful neglect of the Act’s provisions could lead to six months of imprisonment and a fine of up to ₹2,000.
At Credible Corporate Service, we understand the nuances of the Contract Labour Regulation and Abolition Act (CLRA) and offer tailor-made solutions to ensure that your business stays compliant and protected.
Here’s why we should be your go-to partner for CLRA registration:
Our team of legal experts specializes in labor laws and CLRA compliance. We will handle the intricacies of the Act for you.
Time is money. We know that our efficient services can streamline the registration and compliance process so you can focus on what matters most: growing your business.
The service allows tracking of compliance mechanisms to maintain updated labor laws and regulations. This feature keeps organizations on track with policy modification based on changing legalities to avoid non-compliance.
Every business is unique, and so are the compliance needs of a business. We offer personalized solutions to fit the needs of each requirement. Thus, ensuring compliance hassle-free.
We cover registration to subsequent compliance checks. Our team will walk you through each step of the process.
We prepare you for the identification and avoidance of legal and financial risks by keeping your business safe and compliant.
We give you clear and upfront pricing so you know exactly what you are paying for. No hidden charges or surprises!
Our friendly customer support team is always available to help you with your queries or concerns. Your peace of mind is our priority.
Credible Corporate Service has assisted hundreds of businesses in navigating CLRA compliance. Our track record speaks for itself!
Did you know that a compliant workplace leads to happier employees and fewer legal complications? It’s a win-win!