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Contract Labour License — Mandatory for All Labour Contractors

Every contractor deploying 20 or more contract workers must obtain a Contract Labour License under the Contract Labour (R&A) Act, 1970.

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What is Contract Labour License?

A Contract Labour License is issued under the Contract Labour (Regulation & Abolition) Act, 1970 to contractors who supply or deploy labour to principal employers. Any contractor employing 20 or more contract workers in an establishment must obtain this license before commencing work. It regulates the terms and conditions of contract labour and protects worker rights.

Who Needs This Labour License?

Key Benefits of Getting Labour License

✓Legal authorization to deploy contract workers
✓Protects contractor from prosecution under CLRA Act
✓Required for empanelment with government PSUs and large corporates
✓Enables ESI/PF compliance for contract workers
✓Builds credibility for large contract bids
✓Enables transparent contractor-employee legal framework

Documents Required

Step-by-Step Process

1

Principal Employer Registration

Ensure principal employer has valid registration under CLRA Act (Form I).

2

Contractor Application

File Form IV (licence application) to the Regional Labour Commissioner.

3

Document Submission

Upload all KYC, work order and worker details to the labour portal.

4

Security Deposit

Pay requisite security deposit based on number of workers.

5

Inspector Verification

Labour Inspector may verify contractor and principal employer details.

6

License Issued

Contract Labour License (Form V) issued and delivered.

Timeline & Turnaround

Basic
₹499 · Standard Processing
Standard
₹1,499 · Priority Processing
Premium
₹2,999 · Express + Dedicated Expert

⏱Expected timeline:7–10 working days (Standard); 4–5 working days (Premium)

Penalty for Non-Compliance

⚠️Warning:Operating without a Contract Labour License attracts imprisonment up to 3 months, fine up to ₹1,000 per day of violation, and cancellation of contracts with principal employers under CLRA Act 1970.

Simple, Transparent Pricing

All plans include expert assistance, document review, and filing support. No hidden charges.

Basic

₹499one-time
  • Document checklist guidance
  • Application form preparation
  • Single authority submission
  • Email support
  • Certificate delivery (digital)
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Standard

₹1,499one-time
  • Everything in Basic
  • Priority application filing
  • Dedicated compliance expert
  • Authority follow-up included
  • Phone + WhatsApp support
  • Physical certificate delivery
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Premium

₹2,999one-time
  • Everything in Standard
  • Express priority processing
  • Inspection representation
  • Objection & query handling
  • Annual compliance reminder
  • Free 1-year renewal reminder

Frequently Asked Questions

What is the minimum number of workers to require a CLRA license?+
Under the Central Act, contractors deploying 20 or more workers need the license. Several states have reduced the threshold to 10 workers.
Does the principal employer also need registration?+
Yes. Principal employers (factories/establishments) with 20+ contract workers must also register separately under CLRA as principal employers.
Is CLRA license required for each work site?+
Yes. The license specifies the establishment/work site. A separate license or amendment is needed for each new work location.
What is the validity of the Contract Labour License?+
License is typically valid for 12 months and linked to the duration of the work order. It can be renewed for continued deployments.
What records must a contractor maintain?+
Contractors must maintain attendance registers, wage slips, muster rolls, and submit Form XXIII annual returns to the Labour Department.

Labour License in Top Indian Cities

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