Contract Labour License
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What is Contract Labour License?
The Contract Labour License is a statutory license issued under the Contract Labour (Regulation and Abolition) Act, 1970, required for contractors who employ or supply contract labour to any establishment. This license authorizes the contractor to legally engage a specified number of workers for a defined period while ensuring compliance with labour laws related to wages, working conditions, health, safety, and welfare of contract workers. Obtaining this license is mandatory for contractors engaging 20 or more workers and is essential to avoid legal penalties, ensure smooth labour inspections, and maintain lawful business operations.
What are the Benefits of Contract Labour License?
Legal Compliance
Ensures the contractor complies with the Contract Labour (Regulation and Abolition) Act, 1970 and avoids legal penalties.
Authorization to Employ Workers
Allows contractors to legally engage and supply contract labour to establishments.
Smooth Inspections
Helps in hassle-free labour department inspections and audits.
Business Credibility
Enhances trust and credibility with clients, corporates, and government bodies.
Eligibility for Contracts
Mandatory for participating in tenders, PSUs, and large corporate projects.
Worker Protection
Ensures proper wages, working conditions, health, and welfare measures for contract workers.
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Who can apply for an Contract Labour License?
Contractors employing 20 or more contract workers
Manpower supply agencies
Security service providers
Housekeeping contractors
Facility management service providers
Construction contractors
Contractors and sub-contractors
Maintenance and service contractors
Document Required for BOCW Registration
Role of Shamkris and Process of Contract Labour License
Shamkris adopts a results-oriented approach to compliance with mandatory licence requirements in the organization. A simple and guidance methodology help organisation to achieve licence in a timely manner and cost-effective. Shamkris support 100% in advisory, Guidance, Compliance with respect to license requirements to obtain approval.
The License process described below:
Advisory for the document required
Preparation of documents as per application & list of documents.
Application File
Inspection by the department if required
Liason department
Yearly Compliance if Applicable
Renewal when due
Who can issue the BOCW Registration ?
FAQ
Yes. It is mandatory for contractors employing 20 or more contract workers under the Contract Labour (Regulation and Abolition) Act, 1970.
The license is issued by the Labour Department of the respective State or Central Government, depending on the establishment.
The license is generally issued for 1 year (validity may vary by state) and must be renewed before expiry.
No. Employing contract labour without a valid license is illegal and may lead to penalties, fines, or legal action.
Yes. The license is usually site-specific or project-specific and issued for a defined number of workers.
If the number exceeds the approved limit, the license must be amended or reissued.
Yes.
Principal Employer → Registration Certificate
Contractor → Contract Labour License