Understanding Labor License Security Deposits: How Much and How to Pay?

rajeswar21
I have some contractors in our limestone mines. The contractor has applied for a labor license for 50 persons. What would be the security deposit, and how is it to be paid.
BHAGATHR
Hello, Mr. Rajeshwar, I am addressing your query directly.

Procedure for Obtaining a Labor License for Contractors

1. Firstly, review the applicability of central and state rules for the Contractor Labor (Regulation and Abolition) Act 1970.

2. Proceed to apply for the labor license using Form V and Form IV, along with a copy of the challan payment in quadruplicate, to be submitted at any SBI branch/RBI/treasury.

3. When obtaining the license for the first time, you are required to deposit a security amount for the total number of contract workmen under the Security Deposits Act of the Contract Labor Act 1972.

4. The security deposit amount is Rs. 1000 per head according to the Security Deposits Act of the Contractor Labor (R&A) 1972.

5. The calculation for the security deposit amount is as follows:

- Total SD amount = SD per head * number of workers under the contractor for whom the labor license is being applied.
- Total SD amount = 1000 * 50, i.e., Rs. 50000.

Regards,
Bhagat Singh
HR Executive
Shree Nakoda ISPAT
Raipur (CG)
[Phone Number Removed For Privacy Reasons]
kunjmba
Dear Mr. Bhagat Singh,

Labour license fees differ for the Central Government (licensing fee) and state government Labour License. Please update correctly.

Regards,

Kunj Bihari Paswan
Manager-HR
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