Labour License

Labour license is actually a registration that a contractor has got to take with the Labour Department for keeping or employing labour within his company. But it doesn’t mean, others don’t need to take a Labour License. to understand more about Labour License, we will bifurcate it into these categories:

1. Central Labour License

• Principal Employer Labour License These are companies that issue tenders or companies that are getting to employ or keep contractors under themselves.
• Contractor Labour License These are companies that work within a principal employer as a contractor or petty contractor.

2.State License

•  Principal Employer Labour License These are companies that issue tenders or companies that are getting to employ or keep contractors under themselves.
• b. Contractor Labour License These are companies that work within a principal employer as a contractor or petty contractor.

Who is Required to Register ?

A labor license is required under the Act for every vendor who has more than 20 employees at a registered site

The Contract Labour (Regulation and Abolition) Act applies to the following entities:

• 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 employed twenty or more workers on any day of the accounting year.
• Also, it does not apply to the establishments if any work is performed in the intermittent nature.
• It does not apply to the establishments if any work is not performed for more than one-twenty days in a year.
• It does not apply to the establishments situated in the special economic zone(SEZ).
• It does not apply to the establishments if any work is performed in the seasonal nature for more than sixty days in a year.

Labour License is done for two types of companies- for Proprietorship Labour License and for PARTNERSHIP/ PRIVATE LIMITED COMPANY.

List of documents required for Labour License. 

• PAN card of the owner / director or partner
• PAN card of the company/ partnership
• Aadhaar Card of the owner /director or partner
• Photograph of the owner /director or partner
• Electricity bill of the premises
• Letter of Authorisation for signatory
• Bank statement/ Canceled Cheque
• Partnership Deed/ Certificate of Incorporation
• Letter of Authorization