Labour Contract License
Labour Contract License is a license that is required by any establishment or contractor who employs 20 or more workers in the building and construction industry. The license is issued by the state government, and it is mandatory to obtain this license under the Contract Labour (Regulation and Abolition) Act, 1970.
The process for obtaining a Labour Contract License involves the following steps:
Application: The employer or contractor needs to make an application to the Labour Department of the state in which the establishment is located. The application form can usually be downloaded from the department's website or obtained in person from the department's office.
Submission of documents: Along with the application form, the employer or contractor needs to submit the following documents:
- Proof of registration of the establishment or contractor, such as a certificate of incorporation or partnership deed
- Details of the proposed work or contract, including the duration, number of workers to be employed, and the nature of work
- Details of the employees to be engaged, such as their names, addresses, and wages
- Proof of payment of the prescribed fee
Inspection: Once the application is submitted, the Labour Department conducts an inspection of the establishment or site to verify the details provided in the application.
Grant of license: If the inspection report is satisfactory, the Labour Department grants the Labour Contract License. The license is usually valid for one year and needs to be renewed annually.
Documents required for Labour Contract License:
- Proof of registration of the establishment or contractor, such as a certificate of incorporation or partnership deed
- Details of the proposed work or contract, including the duration, number of workers to be employed, and the nature of work
- Details of the employees to be engaged, such as their names, addresses, and wages
- Proof of payment of the prescribed fee
The time required to obtain a Labour Contract License may vary from state to state, but it usually takes around 30-60 days.