Labour License – Rules, Fees & Compliance

Mandatory registration under labour laws for employers engaging contract workers in India.

What is a Labour License?

Labour License is issued under the Contract Labour (Regulation & Abolition) Act, 1970 to regulate the employment of contract labour and ensure welfare, safety and statutory benefits to workers.

Labour License Rules & Applicability

Mandatory under Contract Labour Act, 1970
Applicable when 20 or more contract workers are engaged
Separate license for each establishment
License required before deployment of workers
Principal employer registration mandatory

Labour License Fees

Government fees depend on the number of contract labour employed.

Up to 50 workers: ₹500 – ₹1,000
51–100 workers: ₹1,000 – ₹2,000
Above 100 workers: Higher slabs applicable
Security deposit applicable per worker

Documents Required

Principal employer registration certificate
Contract agreement copy
Identity & address proof of contractor
List of contract workers
Form V issued by principal employer

Penalty for Non-Compliance

Penalty for operating without license
Fine and imprisonment for repeated default
Cancellation of license
Blacklisting by labour department

Validity & Renewal

Validity as per state rules (generally 1 year)
Renewal before expiry mandatory
Late renewal attracts penalty
Fresh application if expired

Other Mandatory Labour Compliances

Maintain wage, attendance & muster roll
Ensure minimum wages payment
Provide canteen, rest room & first aid
Timely filing of labour returns

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Registration, renewal and complete labour law compliance support.

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