Navigating Labour License Requirements: Do We Need One for Our Tamil Nadu Office?

I am Arun, the HR Lead in a learning consulting company in Tamil Nadu. Please clarify the following questions:

1) My company is registered under the TN Shops and Establishments Act with 100 employees. Is it mandatory to obtain the Labour License?

2) In our organization, only 2 people are under contract. What is the minimum number of employees required to obtain a contract labour license?

Please guide me on the process of obtaining the Labour License as well.

Thank you.

Regards,
Arun

Please be informed that there is no registration required under the TN Shops & Establishment Act. Please confirm under which Act you have registered your establishment, mentioning the employee strength of 100.

Since you have engaged only 2 contract workers, it is not required to take a license under the Contract Labour Act now. The minimum required strength to obtain a license is 20.

Please write to us if you are looking for any professional assistance/support further.

Regards

The company is registered as a private limited company, and we operate under the TN Shops and Establishment Act. Currently, we have a total of 100 employees, out of which 98 are permanent employees, and 2 are contract employees. I would like to inquire whether it is mandatory to obtain a labor license specifying the headcount to avoid any potential legal issues.

Do I need to acquire a labor license specifically for permanent employees? If so, could you please provide guidance on the procedure for obtaining one?

Your prompt advice on this matter would be greatly appreciated.

Regards,
Arun

As we mentioned earlier, there is no procedure to get registration under the TN Shops & Establishment Act. Instead, there is a mandatory process for an establishment to obtain the "Form III - Approval" from the Assistant Inspector of Labour under the TN Industrial Establishment (National & Festival) Holidays Act. It is equivalent to getting the license under the Labour Authority.

While taking the approval in Form III, the number of employees will be mentioned in the application form, and the list of employees needs to be forwarded in "Form S" under the TN Shops & Establishment Act. As a service provider, we will assist you in obtaining approval from the Labour Department at a very competitive rate.

Regards.