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Labour Licence For Contractors

Picture of a brick labour working with heading labour licence

The importance of labour licence for contractors can be seen in the The Contract Labour (Regulation and Abolition) 1970 Act, It applies to any establishment in which twenty or more workmen are employed on any day of the accounting year as contract labour.

It applies to any contractor who employs or who employs twenty or more workers on any day of the accounting year. Or in simpler words any contractor having 20 or more than 20 labourers working under him, has to apply for “Labour Licence”. Recently in Bihar the limit of the working labourers has been increased from 20 to 50. 

Documents Required for Petty Contractors and Principal Employer

Since the required documents vary from state to state due to the nature of work and other formalities, you should also prepare the documents given below

  • Copy of the report showing the legal status of the firm.
  • Photograph of the document showing allotment of PF Code No.
  • Copy of receipt/cover note/insurance policy received.
  • Copy of challans showing remittance of security deposit.
  • The licence fee to receive the labour licence.

Validity of Labour Licence

As you know there are two types of labour licences issued, one for the petty contractor and the other for the principal contractor. The Petty Contractor has to renew his license every year, but in the case of the principal contractor, the validity of the licence is till the completion of the project.

How to Apply for Labour Licence

There are two ways for applying for a labour license, One is the offline mode and the other one is the Online mode since many states now accept applications on their government-authorised e-portals. If you want to apply Online then you need to go to the official e-portal of your state labour office and then you have to register yourself first through your mobile number and then after registering you can proceed forward and continue to submit your application for a Labour license.

Learn more about Labour Licence with this video

Apply for different Licenses

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shikhar shukla
shikhar shukla
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