CONTRACT LABOUR(R&A) ACT, 1970 AND AP RULES, 1971.

Procedure for online application for grant of License /renewal of License of Contractor
Establishments under A.P. (Issuance of Integrated Registration and Furnishing of
Combined Returns under Various Labour Laws by certain Establishments) Act,
2015(amended in 2016) and covered by Contract Labour(R&A) Act, 1970 And AP
Rules, 1971.

Applicability:
The Contract Labour Act applies to every contractor who employed 50 or more workers on
any day of the preceding 12 months.

Licensing of Contractors:

No contractor shall undertake any work through contract labour except in accordance
with a license issued by the licensing officer.

On filling out the application online, Form V issued by the Principal Employer shall be
uploaded and requisite fee as per the following fee structure be paid online.

License Fee:
From 50 to 100 Workers Rs. 570.00
From 101 to 200 Workers Rs. 900.00
From 201 to 400 Workers Rs. 1275.00
More than 400 Workers Rs. 1850.00

Security Deposit:

Security deposit @ Rs. 50/- per each worker shall also be paid online.

Validity of License:

The license issued shall be valid up to 3 years as opted by the contractor. Validity of the
license commences on the date of issue and continues up to 31st March of the 3rd year or
as opted by the contractor.

Licensing Officers:

The following officers of Labour Department have been notified as Licensing Officers under
section 11 of the Contract Labour (R&A) Act,1970.(G.O.Ms.No.46 of LET&F (Lab-IV) Dept.
dt. 20.06.2008)
1) Asst. Commissioner of Labour
2) Dy. Commissioner of Labour
3) Jt. Commissioner of Labour
How to make application for License:

Submission of physical application form and other documents was dispensed

with, as provided in the A.P. Integrated Registration Act, 2015 amended in
2016.

Application through Citizen Service Centers (Meeseva, APOnline):

Applicant may approach any Citizen service center to avail the service of
issue of license/renewal of license of the contractor, along with details of the
contractor to be licensed and the fee payable as shown in the above table.
On furnishing the information to be filled up in the application, to the kiosk
operator and on payment of requisite fee, license is generated
instantaneously and handed over to the applicant.

Application Online:
The contractor may also apply for license online, following the procedure
specified below.
Step 1: Go to meeseva portal. URL: https://onlineap.meeseva.gov.in/
Step 2: complete profile registration so that citizen can get user credentials
to log into the portal.
Step 3: select required service from Labour dept. section
Step 4: Fill up the form and pay the requisite fee online
Step 5: Payment receipt will be generated.
Step 6: License will be generated instantaneously.
Step 7: Take a printout of the receipt as well as license.

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Important Provisions under the Contract Labour (R&A) Act
applicable to contract workers

Welfare and Health of the Contract Labour:-

Canteens (Section 16), Rest Rooms (Section 17), Drinking Water, Latrines and
urinals, washing facilities (Section 18) and first aid facilities (Section 19) shall be
provided by the contractor and on his default, by the principal employer (Section 20).

Section 21:- Responsibility for payment of wages: Contractor shall be responsible for
payment of wages to the contract workers engaged by him. Principal employer shall
nominate a representative to witness and certify payment of wages to the contract
workers engaged by the contractor. If the contractor fails to make payment of wages
before due date, the principal employer shall pay wages to the contract workers.
Rule 73:-The Authorized representative of the principal employer should certify every
month, in the wages register maintained by the contractor that the wages shown in the
register are actually paid to the contract workers.

Rule 78 (b) :-A wage slip shall be issued by the contractor toeach contract workman in
form – XIX. In addition to the details in form – XIX, it is advised to show in the wage
slip, the details of EPF No, ESI No and Bank account No. of the employee and also the
date of remittance of remuneration in the bank.

Payment of Wages (Rule 63 to 73) and wage rates in accordance with clause 12 in the
notification of Commissioner of Labour under Rul 25 (V) (b).

Wage Rates applicable to the contract labour as notified by the Government vide
notification No.170 dated 19.03.2012 are payable.

Mode of payment of Wages: -

Wages shall be paid by the contractor before due date by way of credit in the bank
account of the contract workers in accordance with AP Gazette No.90 dated
19.02.2008, G.O.Ms.No.591 of LET &F Department dated 31.3.2011 under Payment of
Wages Act, 1936 and the provisions of Payment of Wages Act have been extended
vide G.O.Ms.No.590 of LET & F Department dated 31.3.2011 to all establishments
engaged in scheduled employments, all factories, all industries and all shops and
establishments.

Conditions of Service:- (Notified by Commissioner of Labour under Rule 25):

Working hours of contract workers shall not exceed 8 hours per day and 48 hours in a
week. Daily working hours shall not spread over more than 10 hours in a day. At least
half an hour of rest shall be allowed not later than 5 hours work. Every contract
workman shall be allowed in each week a holiday with wages and 8 National and
Festival holidays and leave with wages @ 1 day for every 20 days of work performed
during the calendar year. Extra wages @ twice the ordinary rate of wages shall be paid
for overtime work. No contract workman shall be terminated without conducting an
enquiry following principles of natural justice.

Rule 25:- Terms and Conditions of Licence:

The license is subject to the following conditions:-

The license shall be non-transferable.

The number of workers employed as contract labour in the establishment shall not, on
any day, exceed the number for which license is granted. Except as provided in the rule
the fee paid for the grant, or as the case may be, for renewal of the license shall be
non-refundable.
The rates of wages payable to the workers by the contractor shall not be less than the
rates prescribed for the Schedule of employment under the Minimum Wages Act, 1948,
where applicable, and where the rates have been fixed by agreement, settlement or
award, not less than the rates fixed.

In cases where the workers employed by the contractor perform the same or similar
kind of work as the workers directly employed by the principal employer of the
establishment, the wages rates, holidays, hours of work and other conditions of service
of the workers of the contractor shall be the same as applicable to the workers directly
employed by the principal employer of the establishment on the same or similar kind of
work.

Provided that in the case of any disagreement with regard to the type of work the same
shall be decided by the Commissioner of Labour, Andhra Pradesh whose decision shall
be final.

In other cases the wage rates, holidays, hours of work and conditions of services of the
workers of the contractor shall be such as may be specified in this behalf by the
Commissioner of Labour, Andhra Pradesh, Hyderabad.

In every establishment where 50 or more women are ordinarily employed as contract

labour there shall be provided 2 rooms of reasonable dimensions for the use of their
children under the age of six years. On of such rooms would be used as a play room for
the children and the other, as bedroom for the children. For this purpose the contractor
shall supply adequate number of toys and games in the play room and sufficient
number of cots and beddings in the sleeping room. The standard of construction and
maintenance of the Creches shall be such as may be specified in this behalf by the
Commissioner of Labour, Andhra Pradesh, Hyderabad.
The licensee shall notify any change in the number of workers or the conditions of
work to the Licensing Officer.
A copy of the Licence shall be displayed prominently at the premises where the
contract work is being carried on

No women employed as contract labour shall be employed by any contractor before 6-

00 a.m. or after 7 p.m.:

Provided that such women contract labour may be appointed in any factory up to 10-
00 P.M. if the Government approves the variation in working hours under Section 66
of the Factories Act, 1948.
Registers and Records to be Maintained :-

The Principal employer shall maintain register of contractors in

form XII (Rule 74)

Rule 76 : Employment Card :

Contractor shall issue an employment card (appointment letter) in form
XIV to each contract workman.

Returns :-

The contractor shall submit a half yearly return in form XXIV to the
Licensing Officer [Rule 82 (1)] and the Principal employer shall
submit annual return to the Registering Officer in form XXV [Rule
82 (2)].

Penalties:- (Section 22,23,24 and 25) : Fine up to 1000rupees,

imprisonment up to three months or both for violation of provisions of the
Act.

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