What is CLRA compliance %?

What is CLRA compliance ? If we are IT company and if we are hiring highly technical consultants for short term, will that fall under labour category ?


Hi Chitra,

CLRA refers to the Contract Labour (Regulation & Abolition) Act, 1970 and its related compliance.

Any employer who engages contract employees have to ensure certain compliance. The objective of the Act is to provide rights and facilities to contract workers during their employment and to ensure that contract workers are treated on par with permanent workers.

You have to refer to the respective State prescribed rules.

For e.g. as per the Contract Labour (Andhra Pradesh Amendment) Act, 2003, contract workers shall not be engaged in core activities of the establishment with the exclusion of certain activities such as sanitation works, watch and ward services, canteen, loading and unloading etc.

However, exceptions to engage contract workers in core activities may be based on the following.
When the activity is originally done through contractors, part-time jobs, or in case of sudden increase of volume of work in the core activity that needs to be accomplished in a specified time.

If you are hiring highly technical consultants, you have to keep your contracts distinguished for those consultants as ‘contract employment’ for short term who will perform duties that are not similar to your other casual employees.

In case you hire these consultants from any external agencies, you have to ensure that your contractor adheres to applicable compliance.

Bhuvana Anand

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