All About - Karnataka Service Certificate Form XV

Ever heard of the term ‘Service Certificate’?

Many of us are aware of what an experience certificate is.

Let us take an example:

Mr. X is working in an MNC in Mumbai and after he served in the company as a senior analyst, he got promoted as a General Manager in another MNC. So he put down his resignation and applied for the other job.

Mr. Y is a contract labourer with a Factory of paint and washes in Mumbai itself and his contract period is of 6 months. After his period is over, he will have to look for work somewhere else.

Now both Mr. X and Mr. Y have worked in their respective organizations. To seek work elsewhere and to display evidence about the experience of work they got from their previous companies, a certificate will be issued to both of them.

Mr. X will get an experience certification or a LOR (Letter of Recommendation) from his previous employer, but after his services are over.

Mr. Y will be issued a service certification by the Contractor during or after the expiry of the contractual period. This includes the employee's details, the nature of the job, the period of employment, and the salary. Under the Contract Labour (Regulation & Abolition) Karnataka Rules,1974, this service certificate is known as Karnataka Service Certificate Form XV.

Let us know more about it!

What is Karnataka Service Certificate Form XV?

Form XV is a service certificate that contract workers can request from their employers who have certain claims related to the employee's work experience. In some ways, they are more like experience letters that are issued in some companies, while in others they are mere memoranda.

Form XV – A Record of Service

Form XV or a Record of Service is the written document provided by the company/employer at the time of dismissal or separation. This document contains a statement attesting to the employee's service and reference.

The service reference is a written document given to the employee by the employer. Form XV is an official document issued when an employee leaves the company or immediately terminates the employment contract. This document is a testimony of employee service.

Form XV describes the type of work he has done in the company. The employer must give the letter of experience to the employee upon resignation. Form XV contains other vital information like the employee's job title and job role, the date of the last payment, and, the reason for the termination of employment.

Form XV – A Statutory Right

Obtaining a certificate is a statutory right. Therefore, employers cannot refuse to issue this certificate. Although the law grants the right to receive the certificate, it does not follow that the employee can dictate what is written on the certificate. The content is up to management to decide based on its administration.

Two things to consider out here:

Obtaining a certificate is a legal right. Employers cannot, therefore, refuse to issue this certificate
Although the right to obtain the certificate is granted by law, it does not follow that the worker can dictate what is written on the certificate

The Legal Implications of Form XV

What does Form XV legally mean? This document legally says three things:

That the person was employed by the employer who issued the certificate
That the employee performed a specific function within the company
The employee performed these functions during this period

Is Form XV equal to Clearance of the Employee/worker?

No, these are two different things. From a legal point of view, Form XV only specifies and confirms that the person was employed by the employer and certifies the kind of work he was doing for him. Form XV is in no way related to a clearance.

It depends on whether the employer indicates the resolution modalities on the declaration (optional)
The clearance is done to check if there are any outstanding debts of the employee with the company after the termination of his services. If there are any debts, the employee or worker is liable to clear them before he gets his Form XV issued and is allowed to work elsewhere
His clearance will only be given to him when all his outstanding towards the existing workplace are cleared
Clearance is more about unfinished business, ongoing tasks, and any unfulfilled obligations

Difference between Form XV – Certificate of Service and Experience Certificate

Now that you have a basic understanding of what a Certificate of Service is, let us find out more about the nature of the document. It can be observed that many people associate the Form XV certificate with the letter of experience.

As mentioned above, Form XV indicates your position and seniority. It is more of a contractual document that states that you have signed a contract with the relevant employer. On the contrary, an experience letter from the employer serves as a supporting document for the type of work performed while working at the organization.

Let us find out the differences between the two.

	Service certificate	Experience certificate
When is it Issued	It can be given at the beginning, middle, or end of the employment tenure. It can also be given as and when it is requested by the employee.	This certificate is generally given after the employee has served his/her notice period, that is towards the end of the service.
What does it Specify?	Indicates your position and duration of work.	Indicates the type of work performed in the company.
Type of document	It is a contract/formal work-related agreement between the employee and the employer.	It is a particular document that highlights the employee's working style.
Limit	The certificate of service expires when the contract expires.	This is provided by the employer at the end and denotes the end of the services of an employee.

About The Karnataka Contract Labour Rules (Regulation and Abolition), 1974

Contract Labour (Regulation and Abolition) Act 1970:

The Karnataka Service Certificate Form XV comes under this Act which was enacted with the primary purpose of regulating the employment of contract workers.

Form XV under the Contract Labour (Regulation & Abolition) Karnataka Rules, 1974, applies to:

Any establishment in which and to any entrepreneur who employs 20 or more workers or has worked in the last 12 months
It does not apply to companies in which occasional work is carried out. Work performed in an establishment is not considered intermittent if it has been performed for more than 120 days in the last 12 months

Each primary employer must apply to the Registrar for registration of Form I and pay the applicable fees. The main employer appoints a representative who is present when wages are paid by the contractor and the sums paid to the contractors must be certified by this representative.

Under the Contract Labour (Regulation & Abolition) Karnataka Rules, 1974, the authorized representative of the principal employer must sign a certificate at the bottom of the payroll or payroll with model entries.

The employer maintains a register of contractors on Form XII. The primary employer must submit a declaration on Form XXV to the registration agent by February 15 of each year. Within 15 days of commencing completion of each contract work for each contractor, a statement must be submitted to the inspector detailing the actual start or completion dates of the work.

This Contract Labour (Regulation & Abolition) Karnataka Rules, 1974, regulates the employment of contract work in some establishments and provides for the abolition of contract work in certain circumstances and other related matters. Central and state rules are established to ensure effective administration and control of the law.

Applicability of Form XV under the Contract Labour (Regulation & Abolition) Karnataka Rules, 1974:

It extends to all of India and applies to any establishment or contractor employing 20 or more workers on any day of the previous 12 months as registration of contract work is required to take on contract workers
The Contract Labour (Regulation & Abolition) Karnataka Rules, 1974, apply to the entire state of Karnataka and all units in Karnataka except the central government

How to request a certificate of service – Form XV to human resources in case of emergency?

As mentioned above, Form XV can be issued at the beginning of the employee's employment relationship or even in the middle based on availability. If there is an additional workload, it can skip human resources.

In these cases, you as an employee have the authority to submit a request to the department and receive it as soon as possible. You just have to prepare an application for the advance issuance of the certificate of service.

Here is a sample template of an application that can be submitted by the workers to the concerned authority/employer or contractor.

Image Source

Sample of Service Certificate for Government Employees

Certified that Name of the employee is working in the Office / Ministry of Name of the department and his / her services are non-transferable / transferable anywhere in the State.

Signature of head of the Office

(With Name, Designation, and Office Stamp)

Place:

Date:

Complete address and Telephone No. of office

Sample of Form XV

Inclusions of Form XV

Form XV [See Rule 77] Service Certificate

Form XV should have the Name and address of the Contractor

Name and address of establishment in/under which contract is carried on
Nature of work and location of work
Name and address of Principal Employer
Name and address of the workman
Age or date of birth
Identification marks
Father's/Husband's name
The total period for which employed From --------To---------------
Nature of work done
Rate of wage
With particulars of the unit in case of piece-work
Remarks
Signature of Contractor

Other Compliances under the Contract Labour (Regulation & Abolition) Karnataka Rules, 1974:

Register of contractors - Each main employer must keep a register of contractors on Form XII for each registered establishment.

Register of employees - Each contractor must keep a record on Form XIII for each registered establishment where she employs contract workers.

Employment Card - Each contractor must issue a work permit in Form XIV to each employee within 3 days of hiring the employee.

Form XV - Certificate of service - In the event of termination of the employment relationship for any reason, the contractor issues the worker whose services have been terminated a certificate of service in Form XV.

Besides Form XV, other Related Compliances that come under Contract Labour (Regulation & Abolition) Karnataka Rules, 1974 are as follows:

Form V – This is a Certificate issued by the Principal Employer
Form XII – This is the Register of Contractors maintained by the Principal Employer
Form XIII – This is the Register of Workers Employed by Contractor
Form XIV – This has the details of the Employment Card that is issued to every contract worker
Form XVI – Attendance or Muster Roll
Form XVII – Each Contractor must maintain a Register of Wages for all his contract workers
Form XIX – A record of Wages Slip should be maintained by the contractor
Form XX – If there are any losses or deductions that need to be made from the contract worker’s wage, it should be noted in this Register
Form XXI – This is the Register of Penalties and Fines
Form XXII – If there is any kind of advance given to any worker, it should be noted and maintained in this Register
Form XXIII – Contractors need to maintain a record of Overtime done by employees along with specific details
Form XXIV – This is the Return sent by the Contractor to Licensing Officer
Form XXV- The Principal Officer is required to file the Annual Return and send it to the Registering Officer

Conclusion

Form XV is a service certificate that is a critical compliance form under the Contract Labour (Regulation & Abolition) Karnataka Rules, 1974. The employee can retrieve his Form XV at the beginning, middle, or end of his contract period or when requested through an application. Form XV acts as proof of experience and the type of work that the worker has done for his previous employer.

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Key Takeaways

Each principal employer of a registered institution must issue a Form XV to the contract worker which acts as proof of the services rendered by him
Certificate of service Form XV and letter of experience are 2 different official documents from your professional portfolio
In the event of a medical or financial emergency, you may request a Form XV certificate of service from the appropriate human resources department
Form XV contains personal data, employment data, working hours, nature of work performed, hourly or monthly pay scale, and employer comments
Each main employer must, within fifteen days of commencing or completing any contract work for each contractor, submit a statement to the inspector appointed under Article 28 of the Act, stating the actual commencement dates or, as appropriate, completion of this contract, in form XXVI
The main employer may or may not own the site or place, but this does not prevent law enforcement or the determination that a specific place or place of business where industry, trade, business, production, or work is not a subsidiary
Form XV is mainly issued for contract jobs and is an official document in the Indian government sector for contract workers/employees