Get Your Contract Labour License (CLRA License) Today!
Are you a contractor employing 20 or more workers? Ensure your compliance with the Contract Labour (Regulation and Abolition) Act, 1970 by obtaining your Contract Labour License or CLRA License!
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Contract Labour License in India
The Contract Labour (Regulation and Abolition) Act, 1970 governs the employment of contract labor in India. It mandates that contractors who employ 20 or more workers must obtain a license to operate legally. This webpage serves as a comprehensive guide for obtaining a Contract Labour License in India.
Who needs a contract labor license or CLRA License ?
- Contractors: Any contractor who supplies or employs 20 or more contract workers on any day during the preceding 12 months must obtain a CLRA License.
- Principal Employers: Organizations that engage contractors for supplying labor must also ensure that these contractors possess a valid CLRA License.
How to apply for a contract Labour license
- The contractor can apply for the license online through the state labor department’s e-portal after registering.
- Offline applications can also be submitted at the state labor department’s head office
How much time require to issue CLRA License
The labor department aims to process applications within 7 -14 days from submission.
Required documents for CLRA License
To obtain a Contract Labour License (CLRA License) in India, contractors must provide several essential documents. The required documents can vary slightly by state, but generally include the following:
1. Proof of Legal Status:
◦ Certificate of incorporation (for companies) or partnership deed (for partnerships).
◦ GST Registration
2. Partners/ Directors/ Proprietor Detail:
◦ Pan card, Adhaar card , photograph
◦ Email ID and Mobile number of concern persons
3. Registration Details:
◦ Provident Fund (PF) Code number allotment.
◦ Employee State Insurance (ESI) registration details.
4. Work Order: Copy of the work order or agreement with the principal employer.
5. Address Proof: Rent Agreement and Electricity Bill
6. Form 3 or Form 4 Received from Principle Employe
Importance of the CLRA License
- Legal Compliance: Having a CLRA License ensures compliance with labor laws, protecting both the employer and the workers from legal repercussions.
- Worker Rights: The license helps safeguard the rights of contract laborers, ensuring they receive fair wages and working conditions.
- Business Reputation: Compliance with labor laws enhances the reputation of businesses, fostering trust and goodwill among employees and clients.
Compliance Requirements for CLRA License
- Contractors must adhere to the conditions specified in the license, including wage rates and working conditions that must align with those of directly employed workers.
- A copy of the license must be displayed at the worksite.
FAQ's on Contract Labour License (CLRA License)
1. What is a Contract Labour License?
A Contract Labour License is a legal requirement for contractors who employ 20 or more contract laborers in India, as mandated by the Contract Labour (Regulation and Abolition) Act, 1970. This license ensures compliance with labor laws and protects the rights of workers.
2. Who needs to obtain a Contract Labour License?
Contractors employing 20 or more contract workers on any day during the accounting year must obtain a CLRA License. Additionally, principal employers who engage contractors for labor supply must ensure that these contractors possess a valid license.
3. What are the types of Contract Labour Licenses?
There are generally two types of licenses:
- Principal Contractor License: Required for contractors directly supplying labor to a principal employer.
- Petty Contractor License: Required for smaller contractors, typically valid for one year and requiring annual renewal.
4. What documents are required to apply for a Contract Labour License?
The following documents are typically required:
- Proof of legal status (e.g., registration certificate, partnership deed)
- PAN card
- Provident Fund (PF) Code number
- Employee State Insurance (ESI) registration details
- Security deposit receipt
- Work order or agreement with the principal employer
- Address proof of the establishment
- License fee payment proof
5. How can one apply for a Contract Labour License?
Applications can be submitted either online through the state labor department's e-portal or offline at the local labor office. Online applications typically require registration on the portal, followed by submission of the necessary documents.
6. What is the validity period of a Contract Labour License?
The validity of the license depends on the type:
- Petty Contractor License: Valid for one year, requiring annual renewal.
- Principal Contractor License: Valid until the completion of the project.
7. What are the penalties for not obtaining a Contract Labour License?
Operating without a valid license can result in penalties, including fines and imprisonment for up to three months, as stipulated under the CLRA Act.
8. How long does it take to process the application for a Contract Labour License?
The processing time for a CLRA License application is typically around 7 days, provided all documents are in order and the application is complete.
9. Can the required documents vary by state?
Yes, the required documents and specific regulations may vary by state due to local labor laws and practices. It is advisable to check with the local labor department for specific requirements.
