Overview
A Labour Contractor License is mandatory for individuals or businesses supplying contract labour to any establishment in India. This license is issued under the Contract Labour (Regulation and Abolition) Act, 1970 and regulated by the respective State Labour Department or Central Labour Authority.
Whether you are a manpower supplier, security agency, facility management company, or contractor engaging workers for industrial or commercial establishments, obtaining a labour contractor license is essential for legal operations. At Adviso Compliance, we provide complete labour contractor license registration services with accurate documentation, expert guidance, and timely approvals.
What is a Labour Contractor License?
A Labour Contractor License is a legal authorization that allows a contractor to engage and supply workers to a principal employer. It ensures that contractors comply with labour laws related to wages, working conditions, welfare facilities, and employee rights.
The license protects both workers and employers by ensuring fair labour practices and legal compliance.
Who Needs a Labour Contractor License?
A labour contractor license is required for:
Manpower supply agencies
Security service providers
Housekeeping and facility management contractors
Construction contractors
Industrial labour suppliers
Service providers engaging contract workers
Any contractor employing 20 or more contract workers in an establishment is required to obtain this license.
Why Labour Contractor License is Important
Obtaining a labour contractor license is crucial for several reasons:
Legal authorization to supply contract labour
Compliance with labour laws and regulations
Protection of workers’ rights and welfare
Avoidance of penalties and legal disputes
Required for agreements with principal employers
Enhances credibility with clients and authorities
Operating without a valid license is a punishable offence under labour laws.
Types of Labour Contractor Licenses
Labour contractor licenses may be categorized based on jurisdiction:
State Labour Contractor License
Issued by the State Labour Department for operations within a state.
Central Labour Contractor License
Issued by the Central Labour Authority for establishments under central government control.
Choosing the correct authority is essential for compliance.
Documents Required for Labour Contractor License
The documents required may vary by state, but generally include:
Identity and address proof of contractor
PAN card of contractor or business
Registration certificate of business entity
Agreement with principal employer
Security deposit proof
Details of contract workers
Proof of business address
Bank account details
Our experts at Adviso Compliance ensure all documents are prepared and verified accurately.
Labour Contractor License Registration Process
We follow a structured and transparent process:
Step 1: Eligibility & Jurisdiction Assessment
We determine whether state or central license is required.
Step 2: Document Preparation
All required documents and agreements are prepared as per legal requirements.
Step 3: Application Filing
The license application is filed with the concerned labour authority.
Step 4: Verification
Authorities verify the documents and details submitted.
Step 5: License Issuance
After approval, the labour contractor license is issued.
Security Deposit Requirement
Labour contractor licenses require a refundable security deposit, calculated based on the number of contract workers. The deposit amount is prescribed by labour authorities and must be submitted before license issuance.
Validity & Renewal of Labour Contractor License
Labour contractor licenses are usually valid for one year
Renewal must be applied before expiry
Late renewal may attract penalties or suspension
We assist with timely renewal to ensure uninterrupted operations.
Responsibilities of a Licensed Labour Contractor
Licensed contractors must comply with the following obligations:
Timely payment of wages
Maintenance of statutory registers
Providing welfare facilities
Ensuring safe working conditions
Compliance with labour laws
Failure to comply may result in license cancellation.
Common Mistakes in Labour Contractor License Registration
Applications are often delayed due to:
Incorrect agreement with principal employer
Incomplete worker details
Incorrect jurisdiction selection
Missing security deposit
With Adviso Compliance, these risks are minimized through expert handling.
Penalties for Operating Without Labour Contractor License
Operating without a valid labour contractor license may lead to:
Heavy fines
Legal prosecution
Cancellation of contracts
Blacklisting by authorities
Obtaining a license on time helps avoid these consequences.
Why Choose Adviso Compliance for Labour Contractor License?
Experienced labour law professionals
End-to-end documentation and filing support
Smooth coordination with labour authorities
Fast processing and follow-ups
Transparent pricing
PAN-India service support
We also assist with license amendment and renewal services.
Post-License Compliance Support
After obtaining the license, we assist with:
Maintenance of labour registers
Compliance with wage and welfare laws
Annual and periodic filings
Labour audit support
FAQs – Labour Contractor License
Yes, if 20 or more contract workers are engaged, the license is mandatory.
Approval usually takes 15–30 working days, depending on authority processing.
No, the license is non-transferable.
Yes, renewal is required before expiry to continue operations.
Violations may result in penalties, suspension, or cancellation of license.