What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Legal authorization to deploy and engage contract labour on factory and commercial premises.
- Absolute protection for the Principal Employer against claims of deemed permanent employment by contract staff.
- Exemption from prosecution, heavy court penalties, and factory closure orders under Section 23 of the Act.
- Mandatory qualification for executing security, housekeeping, IT staffing, and engineering EPC contracts.
- Standardized maintenance of statutory registers (Muster Roll, Wage Register, Overtime, Fines, Deductions).
- Smooth renewal and extension of licenses as project headcounts or contract durations expand.
How the engagement works
Under Section 7 of the Contract Labour (Regulation and Abolition) Act, 1970, an establishment engaging contract workmen without a Certificate of Registration cannot employ contract labour. Under Section 12, no contractor can undertake or execute any work through contract labour without a valid license. Violations under Sections 23 and 24 attract imprisonment up to 3 months, fines, or both.
Scenario 1: A manufacturing plant, warehouse, or corporate office in Pune hiring outsourced security, housekeeping, or assembly line personnel.
Scenario 2: A facility management company, manpower agency, or IT staffing contractor executing a new service agreement.
Scenario 3: An infrastructure developer, EPC contractor, or construction firm mobilizing site labour for real estate or civil works.
Scenario 4: An establishment receiving a show cause notice from the Office of the Deputy Labour Commissioner regarding unregistered contract labour.
Scenario 5: A company participating in large public sector or corporate vendor tenders mandating active CLRA registrations.
Threshold & Engagement Review
We review your contractor agreements, deployed headcount per site, and evaluate whether Principal Employer RC or Contractor License is required.
Form I / Form V Coordination
For Principal Employers, we prepare Form I; for contractors, we coordinate with the Principal Employer to secure the mandatory Form V Certificate.
Security Deposit & Treasury Payment
We calculate the exact statutory security deposit per workman and government licensing fees payable to the state labour treasury.
General questions
01What is the difference between Principal Employer registration and a Contractor Labour License?
The Principal Employer (company hiring the contractor) must register the establishment under Form I. The contractor supplying the labour must obtain a Contractor License in Form IV based on the Form V issued by the Principal Employer.
02What is the employee threshold for CLRA applicability in Maharashtra?
Under the amended Maharashtra state rules, CLRA applies when 50 or more contract workmen are employed by an establishment or contractor on any day in the preceding 12 months.
03What is a Form V certificate?
Form V is a certificate of employment issued by the Principal Employer certifying that the specific contractor has been awarded a contract and stating the maximum number of workmen authorized to be engaged.
04How long is a Contractor Labour License valid?
A Labour License is typically valid for the duration of the contract or for a period of one to five years, subject to annual renewal fees and validity of the underlying contract.