Labour License

Shops & Establishment & Contract Labour Registration

Get your Labour License under Shops and Establishment Act and Contract Labour Act. Ensure compliance with labor laws and protect your business and employees.

Do you know about Labour Licenses under Shops and Establishment and Contract Labour?

Understanding Labour License requirements

Shops and Establishment Act

The Shop and Establishment Act is applicable nationwide, and all the commercial establishments, such as the hotels, and eateries, amusement parks, theatres, and other entertainment houses, as well as any other such public amusement places, come under the purview of the Act.

Commercial Establishment Definition:

  • • Any commercial sector, such as banking, trading or insurance establishments
  • • Any establishment where individuals are employed or engaged to do office work or provide service
  • • The hotels, eateries and boarding houses or a smaller café or refreshment house
  • • Amusement and entertainment places such as theatres and cinema halls or amusement parks

Contract Labour Act

The Contract Labour (Regulation and Abolition) Act, 1970 was enacted to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances.

Key Features

Nationwide Applicability

Shops and Establishment Act applies across India

Employee Protection

Ensures proper treatment of employees

Regulatory Framework

Establishes norms and regulations for businesses

State Variations

Exceptions vary by state with specific lists

Important Note

All commercial establishments must adhere to the norms and regulations set by the Act for the treatment of their employees. The exceptions to the Act vary in the States and each State has given a list of shops and establishments that come under the Act.

How it applicable to you?

Understanding Labour License applicability

Under Shops and Establishment

Registration Requirement

If you are starting a commercial establishment or a shop, you need to file for registration under the Act, within 30 days of commencement of your establishment.

Mandatory Reasons

  • Opening of current account in a bank
  • Forms as a basic license and proof of business
  • Required for other business registrations

Online Availability

Shop and Establishment forms are available online on the government website for easy application submission.

Under Contract Labour

Applicable To:

  • Every establishment with 20+ contract workmen
  • Every contractor employing 20+ workmen
  • Based on employment in preceding 12 months

Not Applicable To:

  • Establishments with intermittent work
  • Establishments with casual nature of work
  • Government decides after consultation with Board

Key Threshold

The Contract Labour Act applies to establishments and contractors employing 20 or more workmen on any day of the preceding twelve months.

Do you need to submit any documents?

Essential documents for Labour License application

Under Shops and Establishment

Application Form

Form No-I i.e Application for Registration

Business Documentation

  • • Telugu Name Board Photograph of the shop/establishment
  • • List of Employees
  • • Copy of Rental deed or sale deed

Employer Details

  • • I.D. proof of the employer
  • • One passport size photograph of the employer

Company Documents

  • • Certificate of Incorporation
  • • Memorandum of Articles (for Companies)

Under Contract Labour

Registration Forms

  • • Form No-I (Application for Registration)
  • • Form No.-VI B (Notice of Commence of Contract Work)
  • • Form No-IV (Application for License)

Contractor Details

  • • List of Contractors with details
  • • Name and address of contractor
  • • Nature of Work
  • • No. of Contract Labour engaged
  • • Date of commencement of contract work

Supporting Documents

  • • Copy of Form No.II (Registration certificate)
  • • Form No.V (Certificate by Principal Employer)
  • • Form No.VI A (Notice by contractor)
  • • Copy of agreement or work order
  • • Joint Undertaking for minimum wages

For your information – Contract Labour

Liabilities and responsibilities of Principal Employer

Principal Employer Responsibilities

Essential obligations under Contract Labour Act

Essential Amenities (Sec 16-19)

The Principal Employer shall provide the essential amenities like Canteen (above 100 contract labours), rest rooms, drinking water facilities and first aid facilities if the same is not provided by the Contractor.

  • • Canteen (for 100+ contract labours)
  • • Rest rooms
  • • Drinking water facilities
  • • First aid facilities

Cost Recovery (Section 20)

The expenses incurred on amenities by the Principal employer may be recovered from the contractor either by deduction of any amount payable to the contractor under any contract or as a debt payable by the contractor.

Wage Disbursement

The Principal employer must ensure the disbursement of wages through Contractor within the expiry of prescribed period by nominating a representative.

If the Contractor fails to make payment or makes short payment then, the principal employer shall be liable to make payment of wages in full or the unpaid balance and recover the amount so paid from the Contractor (Section 21).

Key Responsibilities

  • Provide essential amenities
  • Ensure wage disbursement
  • Liable for contractor's wage defaults
  • Recover costs from contractor

Why Choose Our Labour License Services?

Professional assistance for labour compliance

Quick Processing

Fast and efficient labour license processing within 30 days

100% Compliant

Ensure full compliance with labour laws and regulations

Expert Support

Professional guidance throughout the application process

Documentation

Complete documentation and form filling assistance

Employee Protection

Ensure proper treatment and protection of employees

Ongoing Support

Continuous support for labour compliance and updates

Labour License Application Process

Simple steps to get your Labour License

1

Document Collection

Gather all required documents including forms, identity proof, and business documents

2

Application Submission

Submit application within 30 days of business commencement

3

Verification

Labour department verifies documents and inspects premises

4

License Issuance

Receive your Labour License upon successful verification

Ready to Get Your Labour License?

Ensure compliance with labour laws and protect your business. Get professional assistance for Shops & Establishment and Contract Labour registration.

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