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Labour License

The contract labour (regulation and abolition) act applies to the following entities:

  • It applies to any establishment in which twenty or more workmen are employed on any day of the of the accounting year as contract labour.
  • It applies to any contractor who employs or who employed twenty or more workers on any day of the accounting year.
  • Also, it does not apply to the establishments if any work performed in the intermittent nature.
  • It does not apply to the establishments if any work not performed for more than one-twenty days in a year.
  • It does not apply to the establishments situated in the special economic zone(SEZ).
  • It does not apply to the establishments if any work performed in the seasonal nature for more than sixty days in a year.

Every establishment which proposes to employ contract workers for its work is required to obtain a certificate of registration from the appropriate Government.

Steps to form a Labour License Registration

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Effect of Non Registration

In case an establishment required to be enrolled under Section 7 has not been recorded within the time specified for the purpose under that section, then the punishment will be given as per section 36.

Documents

  • Copy of the report showing the legal status of the firm.
  • Photograph of the document showing allotment of PF Code No.
  • Copy of receipt/cover note/insurance policy received.
  • The license fee to receive the labour license.
  • Copy of challans showing remittance of security deposit.
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