How Do I Get a Contract Labor License for My Manufacturing Company? Need Guidance!

Procedure for Obtaining a Contract Labor License

I want to obtain a contract labor license for the manufacturing company. Please suggest what the procedure is for obtaining it.

I have completed my MBA in HR and am currently serving in the education industry as an HR Generalist. Please assist me with the procedure as this issue is new to me.

Thank you.

Regards,
Anupam

Ensure you have employed 20 or more employees in that particular establishment. Obtain Form V & RC copy in Form 2 from the Principal Employer. Apply to the respective Licensing Officer (in Form IV) of the Jurisdiction of the Establishment (Principal employer place where contract labor works).

Enclose Director List & Memorandum of Contractor. Enclose List of Employees. Remit the applicable Security Deposit & license issuing fees at the Treasury mentioned by the Licensing authority (normally labor inspector). Meet the labor inspector before you remit; he will provide a challan & fill the relevant amount.

In a few days, get it done. Send a copy to the principal employer. Maintain relevant registers mentioned by the licensing authority. Apply for renewal (in Form VII) on its expiry.

Note: A license is to be taken for each vendor (PE). If the contract is not continued, you can apply for a refund of the security deposit or adjust while applying for a New License for another PE.

This is how I've done it - practical experience.

Dear Anupam,

Please collect the copy of the Certificate for Registration of Establishment (Form II), Certificate from Principal Employer (Form V), and Letter of Intent/Work Order issued by the Principal Employer. Attach the Application for Contract Labor License (Form IV) and remit the License Fee and Labor Security Deposit in the concerned Treasury. Attach the Challans along with the application if you are interested in working as a Contractor and planning to engage contract workers on the factory premises. You will then receive the Contract Labor License (Form VI).

If you are the HR person in the factory, then you must apply for RC in Form I with the Certificate of Incorporation of your factory, Factory License copy, along with the due Registration Fee, and a list of contractors planned to engage the contract workmen. You will then receive the Certificate for Registration of Establishment (Form II).

Regards,
Anupam