Is Labor License different from ESIC & PF?
From India, Hubli
Doctor Siva Global Hr


Dear Colleague,

The Labour License is issued to the Contractor under the Provisions of Contract Labour ( Regulation and Abolition) Act which deals with the Working conditions, Welfare and Payment of Wages as well as regulating the working conditions of the Contract Labour engaged by Contractors in any establishment. The Labour Officers visit and inspect the work places to adhere to the regulations.

PF and ESI Codes are allotted to the Establishment / Employer as and when the stipulated number of employees are engaged by the employer as part of Social Security Scheme Contributions by the Employer and Employee as it is Contributory Schemes in nature like Provident Fund, Employees Pension , Employees' Deposit Linked Insurance Fund, Employees' State Insurance Act includes the Medical benefit, Sickness Benefit and so on. The Contribution from Employer and Employee are administered by Government and helps the employees at the right time as per the different schemes.

In short, the License under Contract Labour Act and Registration under PF / ESI are entirely different compliance requirements.

The EPF Act is applicable to every establishment which employees 20 (twenty) or more persons and every such employer shall be required to be registered under the EPF on the government website ‘Employee Provident Fund Organization

The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries' monthly wage does not exceed Rs 21,000 are covered under the scheme.

Th Contract Labour Act applies when 20 or more contract workers are engaged.

From India, Chennai

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