Non-registration of principal employer along with factor related to non-possession of contract labour license by contractor – Regularization of contractual employees.

It is debatable question that if a principal employer when employ the individuals through the contractor who is not having contract labour license under section 12 of the Contract Labour (Regulation and Abolition) Act, then it will attract only penal provisions of sections 23 and 25 of said Act. Therefore it is nowhere provided that such contractual employees deployed through the contractor would become employees of the principal employer.

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