Section 8 — Licensing of contractors.

8. Licensing of contractors.—(1) With effect from such date as the appropriate Government may, by 

notification in the Official Gazette, appoint, no contractor to whom this Act applies shall,— 

(a) recruit any person in a State for the purpose of employing him in any establishment situated in 

another State, except under and in accordance with a licence issued in that behalf— 

(i) if such establishment is an establishment referred to in sub-clause (i) of clause (a) of                            

sub-section (1) of section 2, by the licensing officer appointed by the Central Government who 

has jurisdiction in relation to the area wherein the recruitment is made; 

(ii) if such establishment is an establishment referred to in sub-clause (ii) of clause (a) of                     

sub-section (1) of section 2, by the licensing officer appointed by the State Government who has 

jurisdiction in relation to the area wherein the recruitment is made; 

(b) employ as workmen for the execution of any work in any establishment in any State, persons 

from another State (whether or not in addition to other workmen) except under and in accordance 

with a licence issued in that behalf,— 

(i) if such establishment is an establishment referred to in sub-clause (i) of clause (a) of                          

sub-section (1) of section 2, by the licensing officer appointed by the Central Government who 

has jurisdiction in relation to the area wherein the establishment is situated; 

(ii) if such establishment is an establishment referred to in sub-clause (ii) of clause (a) of                        

sub-section (1) of section 2, by the licensing officer appointed by the State Government who has 

jurisdiction in relation to the area wherein the establishment is situated. 

(2) Subject to the provisions of this Act, a licence under sub-section (1) may contain such conditions 

including, in particular, the terms and conditions of the agreement or other arrangement under which the 

workmen will be recruited, the remuneration payable, hours of work, fixation of wages and other essential 

amenities in respect of the inter-State migrant workmen, 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 as may be prescribed: 

Provided that if for any special reasons, the licensing officer is satisfied that it is necessary to require 

any person who has applied for, or who has been issued, a licence to furnish any security for the due 

performance of the conditions of the licence, he may, after communicating such reasons to such person 

and giving him an opportunity to represent his case, determine in accordance with the rules made in this 

behalf the security which shall be furnished by such person for obtaining or, as the case may be, for 

continuing to hold the licence. 

(3) The security which may be required to be furnished under the proviso to sub-section (2) shall be 

reasonable and the rules for the purposes of the said proviso shall, on the basis of the number of workmen 

employed, the wages payable to them, the facilities which shall be afforded to them and other relevant 

factors provide for the norms with reference to which such security may be determined.