2. Checklist
Copy of Contract
Bill of Contractor
Supporting Documents
Applicability of TDS U/s 194C of the Income Tax
Act,1961
Verification of Terms of Contract
Applicability of Labour Contract Act, 1970
2
4. Applicability of the Act (Sec. 1)
(a) to every establishment and
(b) to every contractor
in which or who employees or employed
20 or > 20 workmen on any day of the preceding
12 months (as contract labour)
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5. Registration of certain establishments of Principle
Employer
Form
No.
Type of Form Under
Section
& Rule
Applied by
or Grant by
Remarks
I Registration of
Establishments
employing
Contract Labour
7(1) &
17(1)
Principal
Employer
(PE)
For registration of the
establishment, every PE shall
make an application in triplicate.
II Certificate of
Registration
7 (2) &
18(1)
Registering
Officer (RO)
The RO shall register the
establishment in Form II
specifying the max. no. of
workmen to be employed as
contract labour in the
establishment
5
6. Rule 26.Fees
The fees to be paid for the grant of a certificate of registration shall
be as specified below: -
If the number of workmen proposed to be employed on contract on
any days is -
(a) 20 Rs.60
(b) 20 – 50 Rs.150
(c) 50 – 100 Rs.300
(d) 100 – 200 Rs.600
(e) 200 – 400 Rs.1200
(f) exceeds 400 Rs.1500
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7. Sec. 9 Effect of non-registration
Principal employer of an establishment shall not
employ contract labour in the establishment.
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8. Application for licence by Contractor
Form
No.
Type of
Form
Under
Section
& Rule
Applied by
or Grant
by
Conditions
IV Application
for Licence
12 (1) &
21(1)
Contractor It shall be accompanied by a certificate by the
PE in Form V to the effect that the contractor
has been employed by him as a contractor and
that he undertakes to be bound by all the
provisions of the Act and the rules made there
under.
VI Grant of
Licence
12 (2) &
25(1)
Licencing
Officer
1. The no. (workmen) employed as contract
labour in the establishment shall not be > the
max. no. specified in the licence on any day;
2. The Minimum Wages Act, 1948(11 of 1948)
shall be apply for rates of wages payable to
workmen by contractor.
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9. Rule 26.Fees
The fees to be paid for the grant of a licence shall be as specified
below: -
If the number of workmen employed by the contractor on any day-
(a) 20 Rs.15.00
(b) 20 – 50 Rs.37.50
(c) 50 – 100 Rs.75.00
(d) 100 – 200 Rs.150.00
(e) 200 – 400 Rs.300.00
(f) exceeds 400 Rs.375.00
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10. Validity of the licence
Rule 27:
Validity for 12 months from the date it is granted or renewed.
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11. Renewal of licence- by Contractor
Form
No.
Type of
Form
Under
Rule
Grant by Remarks
VII Application
for
Renewal of
Licences
29(2) licensing
officer
It shall be made > 30 days before the
date on which the licence expires,
e.g. if licence gets expired on 25th
July 2012, then application for
renewal shall be on or before 25th
June 2012.
If the application is so made, the licence shall be deemed to have been renewed until
such date when the renewed licence is issued.
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12. Responsibility for payment of wages
Section
& Rule
Responsibility of Regarding what Where? Remarks
21(2) &
72
Principal
Employer
To ensure the
presence of his
Authorized
Representative (AR)
At the place and
time of
disbursement of
wages by the
contractor to
workmen
Sec. 21(3) Duty of
Contractor:
To ensure the disbursement of
wages in the presence of such
AR.
21(2) &
73
Authorized
Representative
To record under his
signature a certificate
At the end of the
entries in the
Register of Wages
or the Register of
Wages-cum-
Muster Roll, as
the case may be
For example:
“Certified that the amount
shown in column No…. has
been paid to the workman
concerned in my presence
on…….at……”
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13. Sec.21(4)
Failure of Contractor: To make payment of wages within the
prescribed period or makes short payment,
Liability of the principal employer: To make payment of
wages in full or the unpaid balance due, to the contract labour
employed by the contractor and recover the amount so paid.
How?: Either by deduction from any amount payable to the
contractor under any contract or as a debt payable by the
contractor.
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14. Records & Other Registers to be Maintained
Sec. 29
Every PE and contractor shall maintain such registers and records giving
particulars of:
contract labour employed,
the nature of work performed by them,
the rates of wages paid and
such other particulars in such form as may be prescribed.
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15. Registers and Other Records to be maintained
Form
No.
Type of Form Under
Rule
Maintained by
XII Registers of Contractors 74 Principal Employer
XIV Employment Card 76 Every Contractor shall issue to each
worker within 3 days of the
employment of the worker
Contractor
XIX Wage Slip 78(1)(b)
Contractor
XXIII Register of Overtime 78(1)(a)
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16. Returns to be filed
Form
No.
Type of
Form
Under
Rule
Filed by Filed to When to file? Example
XXIV Half
Yearly
Return*
82(1) Contractor Licensing
Officer
Not later than 30
days from the
close of the half
year.
For the half year
ended June: on or
before 30th July.
XXV Annual
Return
82(2) Principal
Employer
Registering
Officer
Not later than the
15th February
following the end
of the year to
which it relates.
For the year ended
December 2012:
on or before 15th
February, 2013.
*Half Year means “a period of 6 months commencing from 1st January and 1st July of every
year.”
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17. Sec. 23 Contravention of Provisions of the Act
Whoever contravenes:
o any provision of this Act or of any rules made there under , or
o any condition of a licence granted under this Act,
shall be punishable with
o imprisonment for a term which may extend to 3 months, or
o fine which may extend to Rs. 1000, or with both,
and in the case of a continuing contravention with an additional fine which
may extend to Rs.100 for every day during which such contravention
continues after conviction for the first such contravention.
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