I have 5 contractors, each supplying 5 contract labourers to our factory. In this situation, is our factory required to obtain registration under the Contract Labour (R&A) Act, 1970?

​Yes, your factory needs to obtain registration under the Contract Labour (R&A) Act, 1970 if the following conditions are met:

Principal Employer's Obligation (Section 7)
Any establishment that employs 20 or more contract labour on any day in the preceding 12 months is required to obtain registration under the Act.

Your Scenario:

• You have 5 contractors supplying 5 contract labour each.
• Total contract labour: 5 × 5 = 25 (which exceeds 20).
• Since this exceeds the threshold of 20 contract labour, your factory must obtain registration under the CLRA.

​Action Required:

• You (as the principal employer) must apply for registration with the concerned authority (Labour Department) as per Section 7 of the Act.
• Each contractor employing 20 or more contract labour must obtain a license under Section 12 of the Act.

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