CLRA stands for Contract Labour Regulation & Abolition, which is registered under the Act, 1970. CLRA was enacted to the welfare of the contract labours or employees so that they are not exploited, and to offer for its abolition in certain circumstances. It provides the guidelines based on which industry regulates the terms and conditions of service and employment of workers.
The government, the primary or principal employer, the contractor, and the contract labours are the four stakeholders that must be involved in outsourcing as per the CLRA. And, the primary employer needs to have a registration certificate, as per the CLRA Act section, 7. As per section 12 of the CLRA, if any contractor who wishes to supply the contract employees to the principal employer, he needs to obtain a CLRA License first. In effect, the primary employer can’t get the contract employees, if they don’t have a registration certificate.
The foremost important task is to obtain a registration form for applying. In registration certificate for the Labour Act, you have to fill information about, name and address of the establishment, type of business being handled, the maximum number of contract labour and so on.