How Do I License a Contractor with 22 Employees in Delhi? Urgent Help Needed!

Hi all,

Can anybody guide me on the procedure for licensing of a contractor? What forms need to be filed, in which government department/ministry does it fall under, what are the licensing fees, and any other formalities? The contractor has 22 employees working at the principal employer's office in Delhi.

Please, this is urgent.

Thank you for your help, but I have already checked them and could not find the desired results.

Under the Contract Labour Control & Abolition Act, the Principal Employer has to obtain RC from the nearest Labour Commissionerate. Based on this RC, which is an annual feature and has to be renewed annually, an employee can engage contract labour. For more than 20 contract labourers, the contractor has to have a license for which Form V would be issued by the employer. This is a simple mechanism, but violation can result in the prosecution of the employer and contractor.

If you wish to know anything more specific, please contact me via email at abhirutu@rediffmail.com or on 09822395659.

Regards & best wishes,
abhirutu 8)

Dear Abhirutu,

Thank you for the information; it is really helpful. Could you also provide me with an idea about the fees in Delhi: (i) the deposit of the security at the rates specified in Rule 24, and (ii) the payment of the fees at the rates specified in Rule 26.

Regards,
Kapil

Dear Mr. Kapil,

Although Mr. Abhirutu has given you the correct mechanism of how Contract Labour formalities work, I suggest you can go once to the Labour Office and talk to the GLO (Government Labour Officer). The payment of charges etc. is through challan, to be paid in SBI. There are slabs with respect to the number of contract laborers employed by the contract enterprise, for example, 0-50: Rs. 500/- or 51-100: Rs. 1000/-, etc. I suggest you also try from your end to find out by yourself. Believe me, it will be a good experience, especially if it's the first time for you.

Regards,
Shaunak Marulkar