Contract Labour License in Karnataka: Is It Needed for 15 or 20 Employees?

Hi all, we are providing housekeeping services to some educational institutes. However, during the visit of the ALC to the field, he advised us to obtain a Contract Labour License, stating that we have employed more than 15 employees. Yet, it has not exceeded 20 during the preceding year. Therefore, I request CiteHR members to clarify whether the applicability of a Contract Labour License in Karnataka is for 15 employees or 20 employees.

Applicability of Contract Labour License in India

It applies to the whole of India and covers every establishment or contractor where 20 or more workers are employed or were employed on any day of the preceding 12 months as contract labor. Registration is compulsory to employ contract labor.

Regards

I agree with Mr. Mahesh. The moment you have 20 or more employees enrolled with any of your sites, you have to register yourself with that particular client company/site. However, if you intend to employ over 20 employees, you should go for a Contract Labour License.

Regards,
Bhatia S C
Management Consultant & Labour Law Advisor

Registration and Licensing Requirements

Registration (Form II) is required for the principal employer to engage the contractors. A license (Form VI) is required for a contractor to work in an establishment as a contractor (supply contract labor).

Thank you.

Our company is supplying contract labor to a smartphone company. However, the client has partnered with some mobile phone stores all around Karnataka. All the contract labor supplied by us are deployed at these stores. None of these stores has more than 1 employee. Our agreement is with the smartphone company, and the total labor supplied to them is more than 500. Are we required to take Form-II and a contractor license in this case?