A contractor deploying 20 or more workers to a principal employer generally needs a CLRA licence for that establishment, and the principal employer needs a registration. The licence is applied for with a Form V from the principal employer.
The CLRA Act typically applies where 20 or more contract workers are engaged. Some states have lowered this threshold, so confirm the limit in the state where you deploy.
The principal employer, who must be registered under the Act, issues Form V certifying that you are their contractor. You need this to apply for the licence.
Submit the licence application (Form IV) with Form V, the prescribed fee and security deposit to the licensing officer, usually online through the state labour portal.
Once licensed, maintain the register of workmen, wage register, muster roll and issue wage slips, and display the required abstracts at the workplace.
The licence is issued for a period and must be renewed before it expires. Deploying without a valid licence, or beyond the sanctioned strength, is an offence.
The contractor obtains the licence for each principal employer where the threshold is met; the principal employer obtains a registration. Both have duties under the Act.
A register of workmen, a wage register and a muster roll, and the contractor must issue wage slips and display the prescribed notices.
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