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Labour License Registration

  HomeIndia Stats Filings  /  Registrations & Licenses  /  Labour License Registration

Labour License Registration

Labour License Registration in India

Labour License Registration is a mandatory process for establishments employing contract workers under the Contract Labour (Regulation & Abolition) Act, 1970. The license is issued by the Chief Labour Commissioner or the State Labour Department to ensure employers comply with laws governing contract labor welfare and working conditions.

It safeguards workers’ rights, ensures fair treatment, and promotes a transparent employer–contractor relationship. In India, every organization employing contract labor must obtain a Labour License Registration before engaging contract workers.

Applicability of Labour License

A Labour License Registration is mandatory for:

  • Principal employers engaging 20 or more contract laborers in any establishment.

  • Factories, construction sites, and service-based sectors outsourcing work through contractors.

  • Entities covered under the Contract Labour (Regulation & Abolition) Central Rules, 1971, or state-specific regulations.

Failure to obtain this license can result in penalties, legal actions, or suspension of operations.

Legal Framework & Compliance

The Labour License Registration process is governed by the following:

  • Contract Labour (Regulation & Abolition) Act, 1970:

    • Section 7 – Obligation of the principal employer to obtain a license.

    • Section 12 – Contractor’s responsibility for welfare and record maintenance.

    • Section 16 – Conditions for suspension or cancellation of the license.

  • Contract Labour (Regulation & Abolition) Central Rules, 1971:

    • Defines forms, documentation, and timelines for application.

    • Prescribes minimum wages, working hours, and safety provisions.

These laws ensure that both employers and contractors follow proper welfare and safety norms for contract workers.

Documents Required for Labour License Registration

You will need the following documents to apply for Labour License Registration:

  • Application letter addressed to the Labour Commissioner.

  • Details of principal employer – Name, address, PAN, and GST.

  • Establishment details – Nature of business, workforce strength, and working hours.

  • Contractor details – Scope of work and contract duration.

  • Proof of payment of statutory fees.

  • Welfare measures – Drinking water, first aid, and canteen arrangements.

  • Copy of registration under the Shops & Establishment Act or Factories Act, 1948.

  • Bank account details for fee transactions.

All applications and documents must be filed as per the prescribed format under the Contract Labour Rules, 1971.

Step-by-Step Process for Labour License Registration

The process to obtain a Labour License Registration in India includes:

  1. Application Preparation:
    Collect required documents and prepare forms as per the CLRA Act.

  2. Online Submission:
    Submit the application to the respective State Labour Department or Central Labour Commissioner’s Office.

  3. Document Verification:
    Authorities verify the employer, establishment, and contractor details.

  4. Payment of Fees:
    Pay the prescribed government fee online or through challan.

  5. Grant of Labour License:
    Upon verification, the Labour Department issues the license.

  6. Renewal & Compliance:
    Renew the license annually and maintain statutory records of contract labor.

(For reference, you can check the Ministry of Labour and Employment portal for official guidelines.)

Advantages of Labour License Registration

Obtaining a License provides several legal and business benefits:

  • Legal Compliance: Avoid fines or prosecution under the CLRA Act, 1970.

  • Worker Protection: Ensures fair wages and safe working conditions.

  • Transparency: Promotes proper record-keeping of contract labor.

  • Operational Continuity: Prevents disruption due to legal non-compliance.

  • Government Benefits: Enables access to labor welfare and support schemes.

A valid Labour License Registration demonstrates that your organization values compliance, ethics, and worker welfare.

Validity & Renewal of Labour License

The Labour License is generally valid for one year from the date of issuance.

  • Renewal must be applied 30–60 days before expiry.

  • Any changes in workforce strength, contractor details, or establishment address must be reported immediately.

  • Renewal applications require updated documents and payment proof.

Timely renewal of your License ensures uninterrupted operations and legal safety.

Why Choose India Stat Filing?

At India Stat Filing, we simplify the entire process with:

  • Expert guidance for central or state-level registrations.

  • End-to-end assistance with documentation and filing.

  • Coordination with labour authorities for smooth approval.

  • Advisory on compliance, wages, and contractor management.

  • Support for renewals, modifications, and inspections.

We ensure your business stays compliant, secure and audit-ready throughout the process.

📞 Get Started Today

Contact India Stat Filing today to ensure full compliance under the Contract Labour (Regulation & Abolition) Act, 1970 and operate legally without interruptions.