Starting a Small Business: Do We Need a Labor License for Just 6 Employees?

Dear Friends, I am from Chennai. We have recently started a service-oriented business (we have not registered our company). We have received an offer from an MNC company that requires 6 staff from my company. They are asking for a labor license. Could you please help me with this issue? Kindly provide me with suggestions. Do we need to obtain a labor license for only 6 people?

[Email Removed For Privacy Reasons]

Thank you.

If you engage only six laborers, you are not required by law to get a license. However, if you do not obtain a license as required by the Contract Labor (Abolition and Regulation) Act, you may not receive good offers as well. The license is valid for one year, and during that time, you may also receive more offers. Therefore, it is advisable to obtain the license.

Regards,
Madhu T.K

There is no necessity to have a labor license. How will you get a license for the employment of six contract workers/employees when the Contract Labour (R&A) Act, 1970, is not applicable to you?

With Regards,
R.N.Khola

It is always advisable to obtain a license. First of all, you have to check with the Principal Employer's Labour Registration Certificate. In the registration itself, they have to mention your name (Contractor's Name) along with the number of contract laborers. The next step is to obtain the work order and fill in Form 5 at the Labor Department. They will then issue a license to your firm. Please acquire a license for a higher number of contract laborers (even though it is currently 6, increase it to 18 or 20) because if there are changes in the numbers, the principal employer will have to renew the registration repeatedly. Also, make sure to inquire at the Labor Office for more information.

Thank you.

Hi All HR Professionals,

I have one problem, which means I have 19 employees under me in an MNC, and my firm is not registered. Now I am in confusion about what I should do to obtain the license (License for Labour). What form should I fill out for the license? I am from Haryana.

Karamvir

You have to obtain a labor license for your firm. It will be helpful for your firm in the future. Otherwise, you will face problems.

Dear Karamvir,

Under which act do you think you may be held responsible for having a labor license for these 19 employees?

With Regards,
R.N.Khola

Hi All HR Professionals,

I have one problem, meaning I have 19 employees under me in an MNC, and my firm is not registered. Now I am confused about what I should do to obtain the license for labor. Which form should I fill out for the license? I am from Haryana.

Karamvir