Janak Bhatt
Is it compulsory requirement to get labor licence for contractor who is supplying labors (< 10 nos.) in a chemical formulation industry ? Can we work with him by providing monthly work order for the same ?
From India, Vadodara
+2 Others


Dear members,
Please help me am a beginner. It is URGENT
We, as a contractor providing staff to one of MNC. Recently we got form V from that company and they asked us to get license.
Your valuable reply is needed for the following.
1. As a contractor whether i need to apply for Registration or License ( to my understanding-Registration means registration of establishment by Principal employer. License means - Permission to deploy staff by contractor) Please correct me if am wrong.
2. Where i ve apply i.e jurisdiction of establishment or contractor
3. Contract commenced on March 2011, can i apply now.
4. What are the procedure and forms involved.
Note: Principal employer & establishment is in chennai. We, contractor , head office in bangalore which is mentioned in form V.

From India, Madras

another point which i missed
if there is two companies to which we provide staff one 40 nos and another is 5nos. is it required to get a separate license for two companies, though no of staff is less than 20.?

From India, Madras

@ Sundar
2.jurisdiction of establishment
3.Not sure,(yes,but you might have to pay half yearly return form the date of commencement of work to the licensing officer for the previous year )
4.get form V from PE-form IV for the application of Labour license (in triplicate)-security deposit amt at Bank through challann for each no of labour (amt applicable as per labour office )- also deposit labour license fees at bank through challan.
Individual license for different establishment.
Labour strength is 5 then no need for license.

From India, Pune

I see that you location is Vadodara. Here, in gujarat, it is necessary for the contractor to have contract labour license(for any kind of a factory) with 10 or more workmen working at any point of time.
As for the work orders, it is advisable to issue work orders / agreements for a longer period say 6 months, an year or more. It just increases documentation and can create complications in the long run.

From India, Ahmadabad

Dear Mr. Sundar,

Let me address your issues one by one:-

1) Here, I assume that the MNC firm is asking you to register your firm as a contract labour supplier. That means you need a license to supply labour to any company. You need to get in touch with your local labour office to apply for a contract labour supply license.

2) You need to apply for the license under the jurisdiction where your office is located. It has nothing to do with the MNC firm. Basically you need to apply for a labour license and then send a copy to the MNC firm so they can include your firm's name in Form 25 as a registered contract labour supplier.

3) You need to apply for the license ASAP. The authorities do not generally conduct background checks, however, the sooner you apply the safer it is.

4) All the procedures and forms would be available in the local labour office

5) NO. You do not need separate licenses. You just need one license and you can get work orders / agreements signed with your client companies.

Hope this solves your queries.

Aditya Joshi

From India, Ahmadabad

I disagree with Aditya on following points.
1.Contractor need labour license for caring out work at PE establishment and that license is not valid at other establishment.
2.Contractor has to apply for labour license at jurisdiction of PE establishment
3.PE issue form V

From India, Pune

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