Navigating Contract Labour Licenses: Do We Need Separate Licenses for Each Punjab Location?

I'm working for an SME where we are engaged in power projects across India. We have offices at different project locations. One of our projects is in Punjab state, and we are spread across 20 locations.

Contract Labour License Requirement

Is it mandatory to obtain a Contract Labour License for all the project locations in Punjab state, or can we apply for one license covering all 20 project office locations?

Kindly guide me through the process for obtaining the Contract Labour License.

Thank you,

Regards,
Divya Reddy A

Registration (for the Principal employer) and License (for the contractor) are mandatory under the Contract Labour (Abolition & Regulation) Act of 1970, whenever the engagement of 20 or more workers is involved.

Please search CiteHR.com or take a look at the panel on the right—you'll find plenty of the information that you need.

Warm regards.

Your company does not fall under central establishment; hence, wherever workers are more than 20, you will have to obtain a labor license for that location.

It is not important where our company is registered; what is important is which Contract Labour Rules (State or Central) are applicable to our Principal Employer and where they are registered under the Contract Labour Act of 1970. Only these rules are applicable to all of their contractors.

If your contract is with a Government Department such as an Oil Company, Telecommunication Company like BSNL/WCL, or any central government undertaking, then the Central Rules are applicable.

If your contract is with an IT Company or a Construction Company, except for central government companies, then the State Rules are applicable.

If your principal employer obtains one Registration Certificate (RC) under the Contract Labour Act for all 20 locations (which is possible only in Central cases), you can apply for a Contract Labour License.

Regards,
Dilip Nandanwar
Vidarbha Industries
Labour Law Consulting & Outsourcing
Navi Mumbai
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