Labour License in India
📌 What is a Labour License?
A Labour License is a mandatory authorization for establishments employing contract labor under the Contract Labour (Regulation & Abolition) Act, 1970. It is issued by the Chief Labour Commissioner or State Labour Department to ensure compliance with provisions related to the employment of contract workers, welfare measures, and working conditions.
The licence protects contract workers’ rights and ensures that organizations employing them adhere to statutory obligations.
📌 Applicability
A Labour License is required for:
- Principal employers engaging 20 or more contract workers in any establishment.
- Establishments in factories, industries, or service sectors where work is outsourced through contractors.
- Compliance with the Contract Labour (Regulation & Abolition) Central Rules, 1971 (or State-specific rules).
📌 Legal Provisions
- Contract Labour (Regulation & Abolition) Act, 1970
- Section 7: Obligation of principal employer to obtain a license before employing contract labor.
- Section 12: Responsibilities of the contractor to provide welfare measures and maintain registers.
- Section 16: Conditions under which the license can be suspended or canceled.
- Contract Labour (Regulation & Abolition) Central Rules, 1971
- Defines forms, documentation, and timelines for license application, renewal, and reporting.
- Outlines minimum wages, working hours, and safety provisions for contract workers.
📌 Documents Required for Labour License
- Covering letter requesting issuance of labour license
- Details of principal employer: Name, address, PAN, and GST (if applicable)
- Establishment details: Number of employees, type of industry, working hours, etc.
- Details of contractors employed and scope of work
- Proof of payment of fees as prescribed under the rules
- Welfare arrangements: Canteen, drinking water, first aid, and other facilities
- Bank account details for license fee payment
- Copies of Registration under Shops & Establishment Act / Factories Act, 1948
📌 Scope of Services by India Stat Filing
India Stat Filing provides end-to-end Labour License services, including:
- Preparation and filing of Labour License application under the Contract Labour (Regulation & Abolition) Act, 1970
- Assistance with obtaining state-specific or central licenses
- Drafting and submission of required documents and declarations
- Coordination with labour authorities to expedite license approval
- Advisory on compliance, record-keeping, and contractor management
- Renewal and modification of licenses as per changing workforce or industry requirements
📌 Advantages of Labour License
- Legal Compliance: Avoid penalties, fines, or prosecution under CLRA Act, 1970
- Protection of Worker Rights: Ensures fair wages, safety, and welfare measures for contract labor
- Transparency: Maintains proper documentation and registers of contract labor
- Smooth Business Operations: Enables lawful engagement of contract workers without disruption
- Access to Government Schemes: Certain welfare schemes require proof of labour license compliance
📌 Validity & Renewal
- A Labour License is typically valid for 1 year from the date of issuance.
- Renewal must be applied 30–60 days before expiry with updated workforce details.
- Any changes in contract labor strength, establishment address, or contractor details must be reported promptly to the licensing authority.
📌 Why Partner with India Stat Filing
- Expert guidance for central or state-level Labour License applications
- Complete support with document preparation, filing, and follow-up with authorities
- Compliance advisory on contractor engagement, wages, and welfare measures
- End-to-end services including renewals, modifications, and inspections
- Ensures smooth and timely approval without legal or operational hurdles
📞 Get Started Today
👉 Secure your Labour License with India Stat Filing and ensure full compliance under the Contract Labour (Regulation & Abolition) Act, 1970.