Labour Licence Renewal: How Do We Adjust from 100 to 30 Employees?

We have obtained a Labour Licence for 100 employees from the Labour Department. What is the procedure to renew the same Labour Licence for 30 employees?

Dear Colleague,

You have to do two things:

Aspects involved in the renewal process

There are four aspects involved: Amendment, Renewal, Getting back the Security Deposit, and remitting a fresh security deposit for the amended number.

1. Apply for a renewal cum amendment in the same application form for the license for the further period, but mention to amend the number of employees to 30 from 100.

2. Practically, from my experience, for the new license, send a fresh security deposit and get back the total security deposit already remitted. This is what officials will also advise.

You may further check with the Licensing Officer and then proceed.

Amending and Renewing Labor Licenses

I understand that any labor license (it is purely a state subject and depending upon the state rules, the period of validity shall vary from one year to five years) can be amended through the online portal available. Amendments involving an increase in the number of employees will require amendment fees, but a decrease in the number of employees will not require any fees. After all, the amendment fee (as it is in Kerala) is only Rs 50.

If your license has expired, you can apply for the renewal of the license. When you apply for the renewal, you can choose to have 30 employees. The fees applicable will obviously be less. Since the fees are always paid in advance, whatever is paid for a 100-employee count may not be refunded, I believe.

Renewal of Labor License

It is not specified whether the license obtained is from the Labor Department of the State Government or the Central Government. The procedure for renewal of the license may vary from state to state. If the license is obtained from the licensing officer of the Central Government, then the application for the renewal of the license is required to be submitted within 30 days before the date of expiry of the license. The application is in the same form that is applicable for a new license. The license fee has to be paid through Bharatkosh. The application has to be submitted manually by attaching a copy of the license, transaction receipt of Bharatkosh, and a copy of the extension of work.

Once the license is expired, it cannot be renewed in the central government. If the application is not made within 30 days, an additional fee of 25% of the license fee has to be paid.