Labor license is a Contract Labour Act which was enacted by Indian Legislative in the year of 1970. This Act is usually prohibiting the employment of the Labour in certain situations and regulate the working conditions of Contract Labour during employment. This Regulation and Abolition Act, 1970 are established for Labour and employees. The aim for this Act is to regulate the employment of Contract Labour in certain establishments.
This license comes under the Contract Labour Act, 1970 which is enacted by the Indian Legislature in the year 1950. The Labour license is required because If any Contractor who is engaging 20 or more workers who are on the basis of the Contract is required to get a License. The main aim of this Act is to regulate the employment of Contract Labour in certain establishments and provide for its abolition in certain circumstances and for matters connected therewith.
The procedure for registering establishment employed with Contract Labour is like that the employer should approach the Registering office with Application for registration in Form No 1 and along with the receipt representing payment of the prescribed fee.
Documents Required for Labour License
There are some required documents which used in the registration process of Labour License.
- 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.
- Copy of challans showing remittance of security deposit.
- The license fee to receive the Labour License.
Applicability of the Contract Labour Act
This Contract Labour Act applies to the following entities:
- It applies to any establishment in which twenty or more workmen are employed on any day 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.
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