labour licence
Know why your firm needs to register for the labour licence for hiring contractual workers
Do you run a company or a building firm that engages a considerable number of contract workers for different kinds of work? If your business is all about recruiting and hiring different workers for various projects, then it is time that your firm needs to know about labour licence. Such a permit provides your company a permit to employ more than 20 workers successfully for a specific project.
About labour licence
Any company or establishment that requires the input of more than 20 workers for any kind of business work and also includes a sub-contractor needs to apply for a labour licence for the same.
The Contract Labour (Regulation and Abolition) Act intends to forbid the employment of contract workers in specific situations as well as regulate the proper working conditions of the laborers during the job. Hence, this Act intends to stop the overexploitation of the contract workers and also aims to introduce better working situations and circumstances for them. Don't use plagiarised sources.Get your custom essay just from $11/page
Labour licence registration procedure
The registration procedure for availing a labour licence includes:
- The current employer needs to approach the Registering office with the appropriate application for registration in Form No. I, along with the receipt of payment of the prescribed license fee.
- Once the application is filled with all the required information, the registering officer can proceed with the registration of the company and grant a copy of the registered certification in Form No. – II.
Every certificate needs to contain the name and the address of the establishment along with the total number of workers working in the company. Other information must include the type of the trade of the company and additional required details as asked by the authorities.
In case of renewal of labour licence, the employer should contact the authorities before 30 days of the expiry date of the labor permit along with the renewal application of the license in Form VII with multiple copies. Once the application and the renewal fees are deposited, the concerned authorities can proceed with the issue of the certificate to the company.
Charges of labour licence
The costs for a permit depend on certain factors like location, type of license, etc. However, here is a price table which showcases the charges for the labor licenses depending on the number of workers in an organization:
| Number of workers | Charges |
| For 20 workers | INR 15 |
| For 21-50 workers | INR 37.50 |
| For 51-100 workers | INR 75 |
| For 101-200 workers | INR 150 |
| For 201-400 workers | INR 300 |
| For 401 and above workers | INR 375 |
FAQs
- What is the documentation required for labour licence?
The required documentation for the registration of the labour licence is:
- A copy of the statement or report which showcases the legal status of the company or the firm which engages the contract workers
- Photographs of the documents which illustrates the allotment of the PF Code number
- A copy of the cover note or the receipt or the insurance policy received
- Specific photocopies of the challans which show the release of the security deposit
- The payment of the license fees for the labor license
Along with this, do note that the contractors need to fill in the application form for the hiring of the contract workers every month for the new entries.
- Why do I require a labour licence?
Any kind of contractor who engages around 20 or more contract laborers needs to get a license or permit for the same. Such a permit allows regulation of the employment of contract workers in specific establishments and also aids in providing the abolition of them in certain situations without any hassles.