Is a Labor License and PF Deduction Necessary for 16 Mechanical Workers? Seeking Clarity

Labor License Requirement

We are engaged in mechanical works and have a manpower of 16 workmen. We have not obtained a labor license. Is it mandatory to obtain a labor license for 16 workmen? Please clarify.

Provident Fund Deduction

We are not deducting PF for the same. Is it mandatory to deduct PF for workmen from their first working day onwards, even without a labor license? Please clarify.

Clarification on Labor License and PF Applicability

1. The CLRA Act 1970 states that the applicability would start with the employment of 20 laborers. Many states have amended this. The position is not clear regarding the state of Telangana; mention of Rs. 350 as license fees for 5-20 laborers is noticed. So take a call after ascertaining the actual position.

2. PF has no connection with the labor license. The threshold limit is 10 workers, so you are already covered.