Labour License Assistance
Labour License Assistance
Obtaining a labour license is a critical compliance requirement for businesses engaged in employing a certain number of workers, especially in industries such as manufacturing, construction, and hospitality. The labour license is issued under the provisions of the Contract Labour (Regulation and Abolition) Act, 1970, which aims to regulate the employment of contract labour and ensure their welfare and safety at the workplace. Navigating the process of labour license application can be complex and time-consuming, involving multiple steps, documentation, and adherence to various state-specific rules. This is where professional Labour License Assistance services become invaluable.
Contract Labour Act
The Contract Labour (Regulation and Abolition) Act was enacted by the Indian Legislature in 1970. This legislation aims to regulate the employment of contract labour and, in specific situations, to prohibit it altogether. Its primary objective is to ensure better working conditions and protect the rights of contract workers. In this article, we provide a detailed overview of the Contract Labour Act as it applies in India.
Applicability of the Act
The Contract Labour (Regulation and Abolition) Act is applicable under the following conditions:
It applies to any establishment where 20 or more contract workers are employed on any day during the accounting year.
It also applies to any contractor who employs or has employed 20 or more workers on any day in the accounting year.
However, the Act does not apply in the following cases:
Establishments where the work is of an intermittent nature.
Establishments where the work is not performed for more than 120 days in a year.
Establishments located within a Special Economic Zone (SEZ).
Establishments where the work is of a seasonal nature and does not exceed 60 days in a year.
Registration of Establishments Employing Contract Labour
Any establishment intending to hire contract workers must first obtain a certificate of registration from the appropriate government authority. The steps for registering an establishment employing contract labour are outlined below:
- The employer must submit an application for registration using Form No. I, along with proof of payment of the prescribed registration fee, to the Registering Officer.
- If the application is complete and meets all required conditions, the Registering Officer will register the establishment and issue a Certificate of Registration in Form No. II.
This certificate will include the following details:
- Name and address of the establishment
- Maximum number of contract workers permitted
- Nature of the business
- Any other relevant information, if applicable
Documents Required for Registration
The contractor must submit the following documents to the employer for approval:
A copy of the document verifying the legal status of the firm
A photograph or copy of the document indicating the allotment of the Provident Fund (PF) Code Number
A copy of the insurance policy, cover note, or receipt
Copies of challans as proof of remittance of the security deposit
Proof of payment of the license fee required for obtaining the labour license
Renewal of License
The contractor must submit a renewal application to the Licensing Authority at least 30 days before the license expiry date. The application should be made in Form VII and submitted in multiple copies, along with the prescribed renewal fee.
If the contractor fails to apply within the stipulated time, a late fee of 25% over and above the standard renewal fee will be charged.
Penalties
Violation of Provisions Related to Employment of Contract Labour
Any person who breaches any provision of this Act or any rule made under it is liable to face punishment. The penalty may include imprisonment for a term exceeding three months, a fine exceeding one thousand rupees, or both.
In cases of continuing violations, an additional fine of more than one hundred rupees per day may be imposed for each day the offence continues after the initial conviction.