Renewal Of Labour License Under Contract Labour Act - CiteHR
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Please clarify, Under Contract Labour Act if contract labour strength fall below 20, whether still it is necessary to apply for renewal of labour license or not. If "NO" why ? Tapan
Yes dear he has to renew his licence because once it implimented he has to follow the same. Regards, Raju Makwana
Hi everyone ,
I still have one question M working with gammon India in HR dept,we have our project site in Delhi...and there labour license got expired....but there are no labours over there....we take labours from labour shop..on daily wages...than also is it necessary for renewal of license...
Omkar Jambhekar

Dear Tapan
Once you have obtained the license means immaterial of your strength of Workmen, you must renew the labour license, until unless you get the Form VI-B from your principal employer and you surrender the labour license

Dear Tapan,
All departments act similar way. For coverage, you need a minimum of 20 employees (Contract Labour, EPF and 10 for ESIC). After obtaining license/ RC, even if the employees number falls less than 10, you have to continue to pay contribution, file returns etc.
It is advisable to keep the license as you may require license later and taking a new license involves lots of formalities.

Mr. Mohan / Omkar,
It is well said by Mr. S. Baskar. You need to renew the Labour License untile unless you surrender the same. Since your labour strength reduced to less than 20, you need to continue your entries on registers and simply make a renewal fee for renew your license. Once it got expired and not renewed by you, it will viewed seriously by the dept which is addl burden to us.
T. Kumar

Ref to my earlier question I sought reply from all of you, please go thru Sec1 of subsection 4(b) which states that if strength below 20, then provision will be applicable unless appropriate govt. after giving less that 2 months for coverage and published in Gazettee. Is it really happending.
I am not above to understand the above. Could any body help me.

Hi Tapan,
First of all you run the contract in AP or some other state.
In Contract labour is divided into two is stste & another one is central
In Ap, the contract fall under state.more than more 5 members u take licence.
In central more than 20 u take a licence.
The no is below that u just maintain a all records under contract labour Act.
u need not be apply renewal licence.

Dear Tapan,
A labour license is issued by the labour department if you have more than 20 personnel working in your establishment. Generally it is for a one year duration. After which you may renew it if your contract is extended or renewed.
There is a clause which clearly states that you are bound to obtain a license if you have had employed 20 or more personnel at any time during the past 12 months. So, keeping that in mind, once you have obtained the license you have to continue it for the balance currency of the lincense period. If you continue the contract after that with even less people, the last twelve month rule will imply that you have no choice but to renew your license.
Remember, it is simpler to renew than to apply afresh.
Good luck.
Colonel Gahlot, Proprietor

HI, Please clarify, Under Contract Labour Act if contract labour strength fall below 20, can we surrender the labour license taken? AMIT

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