For engaging contract labor, the principal employer as well as the contractor must obtain contract labor licenses from the concerned State Government Labor Department. Separate licenses must be obtained for each state. Even within one state, the principal employer and the contractor must acquire contract licenses for individual factory contracts. For example, if two factories are operating for the principal employer and two different factory contract works are available to the contractor, separate licenses are required for each.
Regards,
D. Gurumurthy
LL, HR & IR Consultant