CLRA Act Applicability on servicing and repair.

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Shreyoshi Dasgupta (Querist)
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23 February 2023 There is a contract between JSW Co. and XYZ Company. The terms and conditions of the contract reads as follows that:

XYZ Co. shall send the manpower to carry the air conditioning machines from the gate of JSW Co. for repair. The necessary repairing has been done in the workshop of XYZ Co. The repaired air conditioners need to be handed over, to the security of JSW Co (main gate office). Whether the CLRA Act shall be applied in this situation?

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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06 July 2024 In the scenario described, where XYZ Company (repair workshop) is providing manpower to carry out repairs on air conditioning machines belonging to JSW Co. (principal employer), and then returning the repaired machines to JSW Co.'s main gate office, the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act) may apply depending on the specific details of the arrangement. Here are some key considerations:

### Applicability of CLRA Act:

1. **Definition of "Contract Labour":** According to the CLRA Act, "contract labour" means workers employed or hired in or in connection with the work of an establishment by or through a contractor. The Act primarily focuses on situations where the principal employer engages contract labour through a contractor for work that is part of the principal employer's regular business or service.

2. **Key Elements to Determine Applicability:**
- **Nature of Work:** Repairing air conditioning machines is a specialized task that might be considered part of JSW Co.'s regular maintenance or operational activities.
- **Engagement of Manpower:** If XYZ Co. is providing manpower directly to handle and repair the air conditioners, and these workers are under the control and supervision of JSW Co. to some extent, the CLRA Act could apply.
- **Control and Supervision:** If JSW Co. exercises control over the manner and methods of work performed by XYZ Co.'s workers, it implies an employer-employee relationship, which may trigger applicability under the CLRA Act.

3. **Exclusions under CLRA Act:** There are certain exclusions where the CLRA Act may not apply, such as work of an intermittent or casual nature, but these are generally interpreted narrowly.

### Conclusion:

Given the nature of the work (repair of air conditioning machines) and the involvement of manpower provided by XYZ Co. directly to handle these repairs on JSW Co.'s premises, there is a possibility that the CLRA Act could apply. It would depend on the specifics of how XYZ Co.'s workers are engaged, supervised, and integrated into the repair process.

To ascertain the exact applicability of the CLRA Act in your situation, it is advisable to:
- Consult with a legal expert specializing in employment and labour laws.
- Conduct a detailed review of the contract between JSW Co. and XYZ Co. to understand the terms governing the engagement of manpower and the repair services.
- Consider the operational practices and supervision arrangements concerning XYZ Co.'s workers while performing the repairs on JSW Co.'s premises.

By analyzing these factors, you can determine whether compliance with the CLRA Act, including registration of the contract and other statutory obligations, is necessary in this case.