Navigating Contract Labour Licenses: What Every Startup Staffing Agency Needs to Know

Hi, I need a few clarifications on the subject matter. We are a startup staffing agency based in Madhya Pradesh and intend to cater to clients in various states.

Questions regarding Contract Labour License

1. Do we need a Contract Labour License in each state separately?
2. What is the overall cost/fee for the license?
3. For how many years is the license valid, and what is the renewal fee?
4. Is the license needed if the number of workers is 20 or more? Is that true for all states? If not, is there any reference table?
5. Can someone send a model contract agreement draft that can be used for:
A. Contract with the workers
B. Agreement with client firms
6. If we want to provide overseas placement, what license is needed (from India)?

Thank you so much for the help.

The position regarding 1-4 is clarified as follows:

Separate licenses are needed for each establishment where work takes place. The license fee and duration are determined by the appropriate government (in most cases, respective states) where the establishment is located. The threshold limit of 20 workers is uniform across India.

Do we need a Contract Labour License in each state separately?

- Yes, if your engagement is 20 or more in any state.

What is the overall cost/fee for the license?

- Different states have different fee structures and per-head deposits for the number of workmen.

For how many years is the license valid, and what is the renewal fee?

- The license is valid for one year from the date of issue.

The license is needed if the number of workers is 20 or more. Is that true for all states?

- I hope there is an amendment to the number in Madhya Pradesh; please check.

Hi Friend, below are the details for your reference.

Do we need a Contract Labour License in each state separately?

Yes, a separate license is needed for each establishment.

What is the overall cost/fee for the license?

Each state has different fees and deposit structures.

For how many years is the license valid, and what is the renewal fee?

The license duration is one year/determined by the authority.

Is the license needed if the number of workers is 20 or more? Is that true for all states?

For some states, it is applicable for 20 employees, and for a few states, it is applicable for 50 employees.

Can someone send a model contract agreement draft that can be used for A: Contract with the workers, and B: agreement with client firms?

Many people have uploaded in this forum. Kindly search in the toolbar; you will find it.