Navigating Labour License Timing and Liabilities: When Should We Apply and What to Expect?

ABC Ltd. has been awarded one project in Pune. We, i.e., ABC Ltd., have already received Form V from the principal employer on the work order. However, our subcontractor will deploy their manpower for work on or after August 8 as land acquisition activities are ongoing there.

Please let me know the following:

1) Should we apply for the Labour License now, or should we apply after the work begins in August?

2) What are the liabilities of the company after receiving Form V?

3) Does the liability increase after obtaining the labor license in this case?

Please guide me on the above issues.

ABC Ltd. has been awarded one project in Pune.

We, i.e., ABC Ltd., have already received Form V from the principal employer on the Work order.

However, our subcontractor will deploy their manpower for work on or after August 8 as land acquisition activity is ongoing there.

Please let me know the following:

1) Should we apply for a Labor License now, or should we apply after the work begins in August?

2) What are the liabilities of the company after we have received Form V?

3) Does the liability increase after we obtain the labor license in this case?

Please guide me on the above issues.

As soon as you receive Form V (or before the commencement of work at the principal employer), you may have to apply for the Contract Labor License. After receiving Form V, it is your duty to ensure and observe all labor laws. It is the liability of the principal employers to ensure a license from the contractor. You only have to pay a late fee for that, so pay and obtain the license without wasting time.