Aviary Metal Limited (AML) is a Maharatna PSU under the Ministry of Defence, Government of India, which gives progressed items and framework to military and government for manufacturing units. AML is one of the top Mahar

CS Professional · Labour Laws and Practice · PYQS · June 2024
Aviary Metal Limited (AML) is a Maharatna PSU under the Ministry of Defence, Government of India, which gives progressed items and framework to military and government for manufacturing units. AML is one of the top Maharatna PSUs. The company has grown significantly in turnover and is consistently giving sufficient profit. AML is focusing on solid development of 12-15% during 2022-23. Radar and Missile Systems, Communication, Network-Centric Systems and other areas will continue to drive the company's growth in the years ahead. In spite of being one of the top industries, total 1000 workers are employed and the working condition of most of the contractual workers are not good. Therefore, Aviary Metal Limited (AML) workers union decided to amalgamate to have effective collective bargaining as there were two registered trade unions and they all were demanding 7th pay Commission and better working conditions in AML. The contractual workers comprising 60 percent of the AML strength, which are continuously working for the last 5 years and still they are on contract employment. Now after 5 years of service, the licence of the contractor has expired to engage the contract labor or the contractor has not applied for the renewal of the licence but the workmen were still employed with the company and not given the status of regular employees. There were frequent strikes with respect to it. Now to have effective collective bargaining with the management, those two registered trade unions have amalgamated to become a strong trade union with the name of Hind Mazdoor Sangh. Hind Mazdoor Sangh were in negotiations with the management for implementation of 7th Pay Commission and to notify permanent positions for several months. Despite several round of discussions, no agreement has been reached. The industrial peace got disturbed which led to frequent strikes affecting the production and target delivery of products causing financial loss to the company. The union after giving notice to management decided to go on hunger strike for 10 days. The management of AML claims that this strike is illegal under the Industrial Disputes Act, 1947, as it has not followed the prescribed procedure for calling a strike. The management has decided to deduct 10 days wages of workers who resorted to hunger strike and initiated disciplinary proceedings against them as they turned violent, they damaged the property of the company as well. In the meanwhile, due to some dispute with the officers of AML, one worker named Rakesh has been suspended who was active member of the Union. In response to the above action, Hind Mazdoor Sangh filed the case before the Labour Court against the AML. Whereas Court decided the case in favour of Management along with compensation of ₹ 2 Lakh for the loss suffered by management. Based on the above facts, answer the following questions, with relevant provisions: Who will be responsible for renewal of license for registration contract employees? Explain the procedure with regard to renewal licence.

Answer & Explanation:

Responsibility for Renewal: Renewal of the licence is the responsibility of the contractor. Procedure for Renewal of Licence: The contractor has to apply under Section 12 of the Contract Labour (Regulation and Abolition) Act, 1970 to the licensing officer by providing all details and such conditions including, in particular, conditions as to hours of work, fixation of wages and other essential amenities in respect of contract labour as the appropriate Government may deem fit to impose in accordance with the rules, if any, made under Section 35 and shall be issued on payment of such fees and on the deposit of such sum, if any, as security for the due performance of the conditions as may be prescribed. According to section 13 of the Contract Labour (Regulation and Abolition) Act, 1970 every application for the grant of a licence under sub-section (1) of Section 12 shall be made in the prescribed form and shall contain the particulars regarding the location of the establishment, the nature of process, operation or work for which contract labour is to be employed and such other particulars as may be prescribed. The licensing officer may make such investigation in respect of the application received and in making any such investigation the licensing officer shall follow such procedure as may be prescribed. A licence granted shall be valid for the period specified therein and may be renewed from time to time for such period and on payment of such fees and on such conditions as may be prescribed. Under Rule 25 of the Contract Labour (Regulation & Abolition) Central Rules, 1971, every licence granted under section 12 shall be "in Form VI annexed to the Rationalisation of Forms and Reports under Certain Labour Laws Rules, 2017" and every licence granted under sub-rule (1) or renewed under Rule 29 shall be subject to the following conditions, namely: the licence shall be nontransferable; the number of workmen employed as contract labour in the establishment shall not, on any day, exceed the maximum number specified in the licence. According to Rule 27 of the Contract Labour (Regulation & Abolition) Central Rules, 1971, every licence granted under Rule 25 or renewed under Rule 29 shall remain in force for twelve months from the date it is granted or renewed. In accordance with Rule 29 of the Contract Labour (Regulation & Abolition) Central Rules, 1971: Every contractor shall apply to the licensing officer for renewal of the licence. Every such application shall be in Form VII in triplicate and shall be made not less than thirty days before the date on which the licence expires, and if the application is so made, the licence shall be deemed to have been renewed until such date when the renewed licence is issued. The fees chargeable for renewal of the licence shall be the same as for the grant thereof. Provided that if the application for renewal is not received within the time specified in sub-rule (2) a fee of 25 per cent in excess of the fee ordinarily payable for the licence shall be payable for such renewal. Provided further that in case where the licensing officer is satisfied that the delay in submission of the application is due to unavoidable circumstances beyond the control of the contractor, he may reduce or remit as he thinks fit the payment of such excess fee.

Topics: Contract Labour (Regulation & Abolition) Act, 1970

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