The Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act) mandates strict compliance for businesses employing contract labor. Failure to adhere to these requirements can result in penalties, legal action, or cancellation of licenses. This guide provides a detailed breakdown of compliance requirements under CLRA for principal employers and contractors.

Who Needs to Comply with CLRA?

The Act applies to:

• Principal Employers hiring 20 or more contract workers in an establishment.
• Contractors supplying 20 or more contract laborers to an organization.

Both principal employers and contractors must register and obtain licenses under the Act.

Key Compliance Requirements for Principal Employers

1. CLRA Registration

• Principal employers must register their establishment with the appropriate government authority before hiring contract workers.
• The Registration Certificate (RC) is issued by the Labour Commissioner.
• The employer must display the certificate prominently at the workplace.

2. Engaging Only Licensed Contractors

• Contractors must obtain a Contract Labour License from the Labour Department.
• Principal employers must verify contractor credentials before hiring them.

3. Maintaining Registers & Records

Employers must maintain:

• Register of contractors (Form XII)
• Register of wages (Form XVII)
• Register of overtime, fines, and deductions
• Register of employment & attendance

4. Payment of Wages & Benefits

• Wages must comply with the Minimum Wages Act, 1948.
• Wages must be paid before the 7th of the following month.
• Benefits like ESI (Employee State Insurance), Provident Fund (PF), and Bonus must be provided.

5. Compliance with Working Conditions & Welfare Facilities

• Clean drinking water, sanitation, and restrooms must be provided.
• Medical facilities must be arranged for contract workers.
• Work hours should follow Factories Act or Shops & Establishments Act.

6. Filing of Annual Returns

• Employers must submit an annual return (Form XXV) to the Labour Department.
• Failure to file returns can result in fines or cancellation of registration.

Key Compliance Requirements for Contractors

1. Obtaining a CLRA License

• Contractors employing 20+ workers must apply for a contract labor license from the Labour Department.
• The application must include:
  • Details of the contract agreement
  • No-Objection Certificate (NOC) from the principal employer
  • List of workers engaged

2. Adherence to Wage Laws

• Contractors must pay wages on time and through bank transfers.
• Compliance with Minimum Wages Act, 1948 is mandatory.

3. Submission of Monthly & Annual Reports

• Monthly wage reports must be submitted to the employer.
• An Annual Return (Form XXI) must be submitted to the Labour Commissioner.

4. Health, Safety & Welfare Compliance

• Ensuring safety gear, proper working conditions, and welfare measures for laborers.
• Workplaces must meet labour safety standards.

5. Maintaining Employment Records

Contractors must maintain:

• Register of Workers (Form XIII)
• Register of Wages (Form XVII)
• Register of Fines, Overtime & Deductions (Form XXI)

Penalties for Non-Compliance

Failure to comply with CLRA regulations can result in:

How Difficult is CLRA Compliance?

For businesses without legal expertise, CLRA compliance can be challenging, involving:
✔ Complex documentation
✔ Strict reporting deadlines
✔ Legal penalties for errors

However, with professional assistance, compliance becomes seamless and hassle-free.

Why Choose ASK ASSOCIATES for CLRA Compliance?

At ASK ASSOCIATES, we provide:
✅ Hassle-Free CLRA Registration & Licensing
✅ Compliance Monitoring & Filing Assistance
✅ Legal Advisory on Labour Laws
✅ Avoidance of Penalties & Ensuring Full Compliance

Don’t risk non-compliance! Contact us today for expert CLRA compliance services.