Contract Labour License Registration

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Contract Labour License

What is a Contract Labour License?

Contract labour license registration in Lucknow is an easy process. An Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and matters connected in addition to that. It applies

  • To every contractor employed or employed on any day of the preceding twelve months, ten or more workers.
  • It shall not apply to establishments in which work only of an intermittent or casual nature is performed.

The organization has employed 20 or more workers in the past 12 months as contract labour. To every contractor who has used 20 or more 20 workers in the past 12 months

Contract Labour License registration:

Every organization or establishment that proposes to employ contract workers must obtain a certificate of registration from the appropriate body of the Government. The employer or the establishment shall apply with the registering office filing application and paying the applicable fees. If the application is processed without issues, the registering officer can register the employer or establishment and issue a registration certificate.

  • The certificate will have the name and address of the establishment.
  • The kind of business establishment is involved in.
  • The maximum number of workers to be engaged under the contract labour.

Documents required in Contract labor License registration:

  • 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 license fee to receive the labour license.

Applicability of the Act

The Contract Labour license registration in Lucknow (Regulation and Abolition) Act applies to the following entities:

  • It applies to any establishment where twenty or more workmen are employed on any day of the accounting year as contract labour.
  • It applies to any contractor who employs or employs twenty or more workers on any day of the accounting year.
  • Also, it only applies to establishments if any work is performed intermittently.
  • It does not apply to establishments if work is not performed for more than one-twenty days a year.
  • It does not apply to special economic zones (SEZ) establishments.
  • It only applies to establishments if any work is performed in a seasonal nature for more than sixty days in a year.

Contractor under section(2) of the act:

A contractor is a person who takes over the responsibility to produce a given result for the establishment, other than a supply of goods or services of manufacture to such establishment, through contract labour or the person who provides contract labour for any work of the establishment and includes a sub-contractor.

Advisory Boards

The central Government under section 3 is excepted to set up the Central Advisory Contract Labour Board on activities relating to the administration of the act.

The Central Board should consist of the following are:

  • The Chairman is to be appointed by the Central Government.
  • The Chief Labour Commissioner (Central).
  • Central Advisory Board
  • The number of members is at most seventeen. Still, it should not be less than eleven, as the Central Government may specify to represent the Government, the Railways sector, the coal industry, the mining sector, the contractors, the workers, and any other sector with the opinion of the Central Government have to represent on the Central Board.

State Advisory Board

The State Board should consist of the following are:

  • A Chairman to be nominated by the State Government
  • The Labour Commissioner or, in his absence, any other officer represented by the State Government.
  • The number of members, which does not exceed eleven but should not be less than nine, as the State Government may appoint to represent the Government, industry, contractors, workers, and any other sectors with the opinion of the State Government have to represent on the State Board.
  • Registration of Establishments Employing Contract Labour
  • Every establishment that proposes employing contract workers for its work must obtain a certificate of registration from the appropriate Government.
  • The procedure for registering an establishment employed with contract labour is explained here.
  • The employer should approach the Registering office with the application for registration in Form No I and the receipt representing payment of the prescribed fee.
  • If the application for registration is fulfilled in all aspects, the registering officer can register the establishment and grant a copy of the registered certificate in Form II.

Every certificate of registration will contain the following:

  • The name and address of the establishment.
  • The maximum number of workers to be contracted as contract labour in the establishment.
  • The type of business.

Other necessary particulars, if any

Effect of Non-Registration

  • If an establishment required to be enrolled under Section 7 has yet to be recorded within the time specified for that section, then the punishment will be given as per section 36.

Licensing of Contractor

  • Every contractor who has employed twenty or more workers on any day of the month has to obtain a license for engaging contract labour working for any establishment.
  • The authorized licensing officer will issue the license per the provisions under section 12.
  • Grant of License under section 13G

The Procedure for granting the license is as follows:

  • The contractor has to request the Licensing Authority and the application for the grant of a license in form No-IV.
  • A security amount of Rs.20 has to be deposited at the time of applying for the license.
  • Receipt about the fee paid to the licensing officer.
  • The principal employer’s Certificate in Form-V states that he employs the applicant as the contractor concerning its establishment.
  • After making necessary investigations, the licensing officer will grant a license in Form VI, which can be renewed from time to time.

To get the registration of the establishment:

  • To engage workers only through licensed contractors. The notice shows the name and address of the Inspector in the language of both English and the Local Language, the rate of salary, date of payment.
  • To retrieve the expenses involved from the contractor through bills payable.
  • The principal employer has to choose a representative to be present at the time of disbursement of wages to the contract workers.
  • The duty of such a representative has to certify the amount paid as wages in the wage register.
  • Report the details relating to contract labour when the Inspector requires.
  • Maintain a register of Contractors (Form XII).
  • Number of Contractors – Nature of Work performed.
  • To send the information relating Annual Return (Form XXV) to licensing authority by 15th February.
  • Submit returns for each contractor within 15 days of the start or completion of work (Form VIA).
  • To provide welfare and Health facilities if the contract is not produced under Section 16 and section 20.

Responsibilities of the Contractor

The following responsibilities to be carried out by the contractors are explained below for contract labour license registration in Lucknow:

  • To get approval from the employer.
  • To obtain a License from the Licensing Authority.
  • Submit the monthly printed bill to the firm for payment of his work starting from the day of the month.
  • To present the Name of the Inspector, Wages paid & Abstract of the Act.
  • To maintain Muster roll, Wages, Deductions, Overtime, Fines, Advance, and Wage slips Registers under Section 29.
  • To provide Welfare and Health facilities such as Canteens, if labour is above a hundred members, restrooms must be compulsorily provided, as well as drinking water, urinals, lavatories, and first aid under section 19.
  • To be responsible for paying wages before the 7th of each month under Section 21.
  • To disburse the salaries in the presence of the representative of the employer.
  • To distribute employment cards to all the workers three days before the start of work.
  • To send the half-early return in form xxiv after 30 days from the close of the half year, i.e. June and December.


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