Procedure For Taking For Contract Labor License

Dear All,
This is Shyam, working as a HR Officer in one of the manufacturing industry, I would like to know the what is the total procedure for taking contract labor license and what are the records to be maintained for this.
Thanks & Regards
Shyam.V

Workers above 20 numbers must go in for Contract Labor Licence from designate Labor Commissioner office. Short cut is to hire a consultant and he will get it done or else the process is as below.
Principal Employer must first submit Form 2 to LC indicating all the Contract Vendors
He will then issue a Form V to the Contractor along with Work Order..
Contractor will submit a list of documents along with original form V and work order, fee amount, a few declarations like NON employment of child labor, etc to the designated labor commissioner who in turn will issue Labor Licence for a period of one year.
The fee is based on the number of workers employed at the site of the principal employer.

Dear shyam,
uhv to approach the nearest labour commissioner office or in which range ur office covers for fulfill the formalities with regn certificate, address proof, pan card, etc. Now a days rupees 50/- per head is charging as licencing fee so on.

Dear Shyam,



The Contract Labour (Regulation & Abolition) Act,1970 is applicable to the establishments employing twenty or more workmen as contract labour. Such establishment need to apply for registration to the labour department (state or Central as the case may be ) in Form-I. The labour licence is required to be obtained by the contractor engaged by you if he is employing twenty or more workmen as contract labour.There are number of records/registers required to be maintained mainly by the contractor.The contractor shall have to send Half-Yearly return to the officials of labour dept.Similarly the employer have to submit Annual return to the officials of labour dept. You have certain obligations as a Principal Employer under the Act & rules.

I suggest you to purchase a book of Contract Labour (Regulation & Abolition) Act,1970 with rules of the state where you establishment is situated as it is a comprehensive Act, which can not be explained here in much details.

BS Kalsi

Member since Aug 2011

Dear shyam,
whether it is ur firm is manufacturing unit. Uhv to take factory licence not the contract labour licence. The contract labour licence is applicable for who engages the labour on temporary basis, against the work undertaken in any factory or else where against the work awarded by the principle employer.
The role of principle employer and contractor is different in any factory/undertaking.
If u need any further details contact [Login to view] or 9949376767

Mr Shyam is asking about contract labor licence.If he is engaging 20 or more contract labour through contractor what he need is not licence but registration.Licence is for the contractor..Shyam has to apply in the prescribed form with fees to the registration officer of the area.For details he has to refer the AP Rules under CLRA Act.
Varghese Mathew
9961266966

Dear Shyam

The following Registers and Records are to be maintain either by Contractor or by Principal Employer

1. Register of Contractors - Every Principal Employer shall maintain such register in Form-XII

2. Register of persons employed - Every contractor shall maintain such register in Form-XIII

3. Employment Card - Every contractor shall issue Employment card to its workmen in Form-XIV

4. Other registers to be maintained by the contractor-

i) Muster Roll (Form-XVI) } OR Register of Wages - cum-

} Muster Roll (Form-XVIII)

ii) Register of Wages (Form-XVII) }

iii) Register of Deductions for damage or loss (Form-XX)

iv) Register of Fines (Form-XXI)

v) Register of Advances (Form-XXII)

vi) Register of Overtime (Form-XXIII)

5. The contractor shall issue Wage Slips to their workmen in Form-XIX

a) Every contractor shall send half yearly return in Form-XXIV so as to reach the Licensing Officer not later than 30 days from the close of the half-year.

b) Every Principal Employer shall send annually a return in Form-XXV (in duplicate) so as to reach the Registering Officer not later than 15th February following the end of the year to which it relates.

I hope u will now be satisfied