Labour Contract Licence

Contract Labour (Regulation & Abolition) Act 1970 was made into action to set a serious blockage against the exploitation of contract labours. It also meant to develop a well scoped work opportunity for the same labour class.

Contract workers or labours are less thrived than permanent employees. Contract labours are hired by a contractor who is ultimately responsible for what wages or facilities they would be given. Thus, to employ the contract workers in a way that they must go secure and their basic rights get monitored, the contractors should have Contract Labour Licence.

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    Purpose of Contract Labour Licence

    A contractor having 20 or more contract workers in hand simultaneously, for sure needs to have the license. The chief purpose of the Act is to regulate the employment of contract labour in certain organizations and stand responsible for its abolition in particular conditions.

    The labour class needs to be guarded since they are of low resources and are easily get subjected to abuses. Hence, the person engaged to work as contractor should have valid footing to hire and utilize the contract labours in proper way. This Labour Contract Licence is the legal document that gives the contractor authority to contract the workers and have them served his purpose.

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    Eligibility criteria

    To indicate the eligibility criteria as what are the terms and conditions to reach a contract labour licence are as below:

    Documents required for Contract License

    That is the common eligibility criteria, though it can differ with respect of different State Governments. For Contractor license certain documents showing the identity demands to be produced by the applicant. The various documents required for Contract License are-

    • Photograph of Establishment Identity
    • PAN Card
    • Treasury Challan
    • Bank details along with Form V given by Principal Employer

    Validity of License

    The validity of Contract labour license is for twelve months from the date when it is granted or renewed. Once the same has been expire, the Contractor shall apply for renewal of license and application for renewal shall be in Form VII before 30 days from the date of expiry of the license.

    Terms and Conditions of License

    The Licensing Officer shall issue the Contract labour license after stcrutinizing application alongwith documents. The various terms and conditions in respect of license are prescribed below:


    • License shall be non-transferable
    • Number of contract labour employed in the establishment shall not exceed the maximum numbers as mentioned in the contract labour license
    • Any fees paid in respect of granting as well as renewal of license shall be non-refundable
    • Timing for female workers who is working in the establishment shall be employed not before 6.00 a.m. or after 7.00 p.m.
    • Copy of license shall always be displayed on the premises of the establishment
    • The wages payable to the workers by the contractor shall not be less the rates as prescribed under the Minimum Wages Act, 1948
    • In case where 20 or more female workers are employed in the establishment, then the contractor shall provide two rooms for the use of children of female worker which shall be under the age of six. The various facilities like playroom and bedroom, maintenance and construction of crèches, toys and games for their children shall be provided by the contractor to the female workers.

    How to achieve Labour Contract Licence?

    Here at SmartBizGuru, we provide the solutions to the queries regarding various legal documents and licensing. We provide Labour Contract Licences without having you much pain. Here is how our process takes place:

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