Labour Licence
Contract labour licence and labour law registrations for food businesses with hired workforce.
Labour Licence encompasses registrations and licences required under various Indian labour laws for businesses employing workers, including Contract Labour (Regulation and Abolition) Act licence for establishments deploying 20 or more contract workers, Building and Other Construction Workers (BOCW) registration for construction activities, and Inter-State Migrant Workmen registration. Food manufacturing units, large restaurants, hotel chains, catering companies, and warehouse operations commonly engage contract labour for production, packaging, cleaning, and logistics, which triggers CLRA licence requirements. Additionally, businesses must register under Employees' Provident Fund (EPF) when employing 20+ workers and Employees' State Insurance (ESI) when employing 10+ workers in notified areas. Complianceer handles contract labour licence applications, PF/ESI registration, labour law compliance audits, and annual return filings.
At a glance
- Timeline: 15–30 working days
- Government fee: ₹500–₹5,000 (licence fee + security deposit for contract labour licence varies by state)
- Professional fee: Starting from ₹3,499
Who needs this
- Food factories and processing units deploying 20+ contract workers
- Large restaurant chains and hotel groups with contract housekeeping/kitchen staff
- Catering companies with seasonal and event-based contract labour
- Warehouse and logistics operations with contract loading/packaging workers
- Businesses needing PF and ESI registration for direct employees
Benefits
- Legal compliance for deployment of contract and migrant workers
- Avoid penalties and prosecution under Contract Labour Act
- Mandatory PF/ESI registration enables employee welfare benefits
- Labour law compliance protects against employee disputes and inspections
- Required for government and PSU vendor empanelment tenders
Eligibility
- Establishments deploying 20 or more contract labour workers on any day in preceding 12 months
- Contractor supplying 20 or more contract workers must also hold separate contractor licence
- PF registration mandatory for establishments with 20+ employees (voluntary below threshold)
- ESI registration mandatory for establishments with 10+ employees in ESI-notified areas
Documents
- Contract labour licence application (Form IV under CLRA Act)
- Certificate of registration under Shops & Establishments Act
- Factory licence or trade licence (as applicable)
- Details of principal employer and contract labour contractor
- Workmen compensation insurance policy
- PF and ESI registration certificates (if applicable)
- Affidavit regarding compliance with labour law provisions
FAQs
When is contract labour licence required for a restaurant?
If your restaurant deploys 20 or more contract workers (housekeeping, security, kitchen support) on any day, CLRA licence is mandatory for both principal employer and contractor.
PF and ESI: are they part of labour licence?
PF (EPFO) and ESI are separate mandatory registrations for eligible establishments, not a single "labour licence." We bundle all labour law registrations in our service.
What is the security deposit for contract labour licence?
States require security deposit ranging from ₹5,000 to ₹1 lakh depending on number of contract workers. Deposit is refundable on licence surrender.