Is Labour license registration mandatorily required for all business entities?
Getting a Labour license is one of the prerequisites to operate a business that many people aren’t ordinarily aware of.
Read more to know if you are required to apply.
Introduction
The Contract Labour Act, 1970 was enacted to regulate Contract Labour employment in certain establishments and to provide for its abolition in certain circumstances, as well as matters related thereto.
It is applicable to:
Any contractor who employs or has employed 10 or more workers on any day in the past 12 months.
It does not apply to establishments where only Occasional or Casual Work is performed.
Who is Eligible to get Registered?
If the entrepreneur/applicant employs ten (10) or more contractual workers in the contractual work, the entrepreneur/applicant is eligible.
An individual or a firm may apply.
The applicant must be a major.
The applicant should not be found guilty (at any time during a period of 5 years immediately preceding the date of application).
What are the Documents required for applying for a Labour License?
Application form IV- duly filled.
Copy of the Trade license issued by the local authorities.
Copy of UBIN (in case of Assam Region).
Copy of Identity & Address Proof (Aadhaar/Voter ID/Driving license).
Copy of Proof of Date of Birth.
Copy of the Registered Partnership Deed.
Form of Certificate by Principal Employer- Form V – duly filled.
No objection certificate from police department/Police Report.
Copy of the agreement between the Principal Employer & Contractor.
What is the Fee for Applying?
A security deposit of Rs. 30 or as advised by authorities is required for each worker to be employed as Contract Labour.
What are the Penalties for Non-Compliance?
A fine of Rs 100, or any higher amount as notified by the Authorities from time to time may be imposed, or 3 years in prison or both.
What is the validity of Labour License Registration?
Every license issued is valid for a period of 12 months from the date of issuance and hence must be Renewed promptly on time.
How long does it take to get Labour License Registration?
The Application for License will be processed within 15 days of receipt of the completed application form.
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
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- Robert Frost
Regards
Asif Hussain
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umang@caumang.com
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