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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 Labour License
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 in which you can apply for any Labour License including .
You can apply for a Labour license by registering yourself at the official web portal of the Labour department of your state. After registering, you’ll be able to apply for the license under the “contractor registration” tab. Make sure that you have scanned copies of all the required documents.
You can apply for the Labour license offline by reaching out to the head Labour office of your state. Look out for specially appointed clerks to help contractors register for a permit in the office.
Popular FAQs on Labour License
Q1: Why are labor licenses important for contractors in India?
Answer: Labor licenses are crucial for contractors as per the Contract Labour (Regulation and Abolition) Act of 1970. They are needed when employing twenty or more contract laborers on any day of the accounting year.
Q2: Who must obtain a labor license?
Answer: Contractors with twenty or more laborers must secure a “Labour Licence,” which is now extended to fifty laborers in Bihar.
Q3: What documents are necessary for a labor license application?
Answer: Essential documents include proof of legal firm status, PF Code No. allotment, insurance records, security deposit receipts, and the license fee.
Q4: What’s the duration of a labor license’s validity?
Answer: There are two types: for petty and principal contractors. Petty Contractor licenses require yearly renewal, while principal contractor licenses are valid until project completion.
Q5: How can one apply for a labor license?
Answer: You can apply either offline or online. Many states offer online application through government-endorsed e-portals. Online applicants register on their state labor office’s e-portal using their mobile numbers and then submit the Labor License application.
Learn more about Labour Licence with this video
Apply for different Licenses
Key Govt. Department Websites
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