If you`re looking to hire contract labour in India, it`s important to understand the legal requirements surrounding the process. One of the key requirements is obtaining a contract labour licence. In this article, we`ll walk you through the steps involved in applying for a contract labour licence.
Step 1: Determine if you need a contract labour licence
The first step is to determine whether your business requires a contract labour licence. As per the Contract Labour (Regulation and Abolition) Act, 1970, any establishment engaging 20 or more contract workers on any day of the preceding 12 months is required to obtain a licence. It`s important to note that this also applies to establishments that use contract labour through a contractor.
Step 2: Gather the necessary documents
Once you`ve determined that you need a contract labour licence, it`s time to gather the necessary documents. The following are the documents required to apply for a contract labour licence:
– An application in the prescribed format
– A list of all contractors engaged by the establishment
– A list of all contract workers engaged by the establishment
– A certificate of registration of the establishment under the applicable law
– A memorandum of association if the establishment is a company
– A copy of the PAN card of the establishment
– A copy of the PAN card of the authorised signatory
– A copy of the rent agreement or sale deed of the establishment
– A copy of the contractor`s licence
– A copy of the contractor`s PAN card
Step 3: Submit the application
Once you`ve gathered all the necessary documents, it`s time to submit your application. You can do this online through the Shram Suvidha Portal or in person at the office of the Labour Commissioner in your respective state. You will need to pay a fee for the application to be processed.
Step 4: Wait for approval
After you`ve submitted your application, you`ll need to wait for approval. It can take up to 30 days for the licence to be issued, though this can vary depending on the state in which you`re located. Keep in mind that if there are any discrepancies in your application or documents, the process may take longer.
Step 5: Display the licence
Once you`ve received your contract labour licence, it`s important to display it prominently at your establishment. Failure to do so can result in fines or penalties in the event of an inspection.
In conclusion, obtaining a contract labour licence is an important legal requirement for establishments engaging contract workers in India. By following the steps outlined in this article, you can ensure that your application process is smooth and successful.
