Do you run a company or a building firm that engages a considerable number of contract workers for different kinds of work? If your business is all about recruiting and hiring different workers for various projects, then it is time that your firm needs to know about labour licence. Such a permit provides your company with a permit to employ more than 20 workers successfully for a specific project.
Any company or establishment that requires the input of more than 20 workers for any kind of business work and also includes a sub-contractor needs to apply for a labour licence for the same.
The Contract Labour (Regulation and Abolition) Act intends to forbid the employment of contract workers in specific situations as well as regulate the proper working conditions of the labourers during the job. Hence, this Act intends to stop the overexploitation of the contract workers and also aims to introduce better working situations and circumstances for them.
The registration procedure for availing a labour licence includes:
Every certificate needs to contain the name and the address of the establishment along with the total number of workers working in the company. Other information must include the type of the trade of the company and additional required details as asked by the authorities.
In case of renewal of labour licence, the employer should contact the authorities before 30 days of the expiry date of the labour permit along with the renewal application of the license in Form VII with multiple copies. Once the application and the renewal fees are deposited, the concerned authorities can proceed with the issue of the certificate to the company.
The costs for a permit depend on certain factors like location, type of license, etc. However, here is a price table which showcases the charges for the labor licenses depending on the number of workers in an organization:
Number of workers
For 20 workers
For 21-50 workers
For 51-100 workers
For 101-200 workers
For 201-400 workers
For 401 and above workers
The required documentation for the registration of the labour licence is:
Along with this, do note that the contractors need to fill in the application form for the hiring of the contract workers every month for the new entries.