Labour License & Other Legal Documents For Running Call Center - CiteHR
Madhu.T.K
Industrial Relations And Labour Laws
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
Mohdyounus
Hr-mis & Payroll

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Dear Senior,
Please brief me regarding requirement of Labour license for call center, we we have branches in other parts of india, is that necessary to take labour license and professional tax license in other state. any how we are generating employment and reducing unemployment in our country. A simple and transparency policy should be there to perform in an smooth way. Please senior provide me your valuable suggestion in this regard.
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Registration under State Shops and Commercial Establishments Act, licence to run a business issued by the Panchyat/ Municipality/ Corporation and Profession tax are state subject and should be obtained separately for each branch/ office. It is okay that you can have a centralized payroll and pay the wages direct to the employees’ accounts from the HO, deducting the profession taxes along with other statutory deductions like PF and ESI, but you have to remit it with the local administrations of the place where your offices function.

Once you are registered with the labour department, you will be covered by the provisions of various Labour Acts like Payment of Wages Act, Minimum Wages Act, Maternity Benefit Act, Industrial Establishments (National and Festival Holidays) Act, Payment of Bonus Act, Payment of Gratuity Act, Industrial Disputes Act etc. In addition to these, Employees State Insurance Act and Employees Provident Fund and Misc. Provisions Act will also be applicable once you employ 10 persons (For EPF at present it is 20 but likely to be made 10 for coverage) For these you have to take separate registration also.

It is accepted that call centres like yours will generate employment opportunities and reduce unemployment. This will be the objective of other firms also. Therefore, on a claim that you will reduce unemployment, you will not be allowed to run the centre without taking registration from the Labour dept. or Local administration, or run it without paying minimum wages fixed for your industry, ie, call centre. Labour Laws are applicable to all establishments without reference to how do they contribute to economic growth of India.

Madhu.T.K
Dear Mohdyounus,
Answer by our Super Moderator Mr. Madhu is very perfect.
Only thing which I wish to add here since I feel your question is on Labour Licence.
Labour License is to be obtained under the Contract Labour Act 1970 by the contractor if he is executing the contract work in the premises of Principal Employer.
To my understanding, you are running a call center in your premises either on rent or ownership and not in a premises on your Principal. Under this circumstances, Labour Licence is not applicable to you.
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