How to get a CLRA License? – Step by Step Procedure

Any company or principal employer whose work and hiring patterns falls under the criteria of applicability of CLRA needs to apply for CLRA registration. Whereas the contractor requires a CLRA licence from the appropriate government for contracting workers to establishments.

The government of India passed the CLRA or Contract Labour Regulation and Abolition Act in the year 1970. The terms of the Act help in averting the exploitation of subcontracting work and establishing better working conditions for contracted employees. Now let us see what is CLRA.

What is the CLRA Act?

As per the terms of the CLRA Act in India, all contract labours are indirect employees of the organization where they have been hired to work through a contractor.

Any establishment that employs contract labour needs to be registered under the Act and required a CLRA licence to continue its hiring process.

What is the CLRA licence applicability?

Let’s see where the CLRA license applicability applies to. The Contract Labour Act applies to any company or organization that has more than twenty people employed as paid labour for any day of the previous twelve months.

The CLRA license is not applicable in cases where the nature of the work of an establishment is seasonal or intermittent. However, the nature of the work shall be decided by the State or Central Government after consultation with respective boards of the establishments.

When should one apply for CLRA registration and licensing?

Any company or principal employer whose work and hiring patterns falls under the criteria of applicability of CLRA needs to apply for CLRA registration. Whereas the contractor requires a CLRA licence from the appropriate government for contracting workers to establishments.

What is the procedure for CLRA Registration?

The entire procedure for the registration of an organization under the Contract Labour Act is as follows:

  • The foremost task is to obtain a registration form for applying.
  • Fill in the application on Form No I.
  • The principal employer should then take this Form-I along with the receipt of required fee payment to the Registration Office.
  • If the application fulfils all the criteria provided in the annexure, a registering officer shall complete the registration for the organization.

What does the CLRA Registration certificate contain?

A Registration certificate for the Labour Act contains the following:

  • The name and address of the establishment.
  • The maximum number of contract labours that the organization can contract.
  • The type of business being handled.
  • Any other mandatory particulars, if required.

Documents Required for Registration:

The contractor presents the documents for registration to the employer for approval. They are:

  • Copy of the report that shows the legal status of the firm.
  • A photo of the document with allotted PF Code No.
  • Copy of the insurance policy or receipt or the cover note that has been received.
  • Challan copies to prove remittance of security deposit.
  • The licence fee for receiving the licence.

What is the Procedure for obtaining CLRA Licence?

You can find the steps for obtaining a CLRA licence online. However, here a few important steps that need to be performed.

  • The contractor has to fill the application for grant of a licence in Form No-IV.
  • Put in a request with the Licensing Authority along with the application.
  • Security amount of Rs.20 to be deposited at the time of application.
  • Receipt of the fee paid to the licencing officer.
  • Certificate by the principal employer in Form-V, stating that he employs the applicant as the contractor for his establishment.
  • The licensing officer grants a license in Form VI after making the necessary checks.
  • This license can be renewed from time to time.

The responsibilities of the CLRA Act, its licence and registration are an ambiguous relationship between the principal employer and the contractor. That is to make sure that all the requirements are fulfilled, and labours get fair work.

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    Comments

    1. comment-author
      Shela Adalja

      I enjoy looking through an article that will make men and women think. Also, thank you for allowing me to comment!

    2. comment-author
      Srishti

      Hello,

      I have a courier agency. I give commission to the delivery agents on per shipment basis. Am i required to obtain CLRA license?

    3. comment-author
      Nisar

      Respected sir, we have fabrication business we do she’d work and all fabrication work which is applicable in labour license

      1. comment-author
        Rishabh Ranjan

        Hi Nisar,

        Your query is not clear. I can only comment on the basis of the number of employees working in the firm.

    4. comment-author
      Vijay

      Hi,
      I am planning to supply labour to one of the reputed construction firms and the numbers are around 10~15 pax initially. Should we need to register PF, ESI, CLRA? Please clarify as we are in the processing of recruiting. thank you!

      1. comment-author
        Rishabh Ranjan

        Hi Vijay,

        ESI is mandatory for establishments employing 10 or more employees. PF is mandatory for establishments with 20 or more employees. As for CLRA, since every state has its own contract labour advisory board, or in other words, every state might have its own version of the rules and regulations for contract labour, please refer to your state’s CLRA rules and regulations for more clarity.

    5. comment-author
      Chittaranjan Padhan

      How can I get a CLRA…?? I have 40 labour but how do I hire them?? 9556613660 contact me only HR person

      1. comment-author
        Rishabh Ranjan

        Hi Chittaranjan,

        Every state has its own contract labour advisory board. In other words, every state might have its own version of the rules and regulations for contract labour. Please refer to your state’s CLRA rules and regulations for more clarity.

    6. comment-author
      Yogesh Singh

      Dear Rishabh,

      Our company owns trucks and for operating trucks we take drivers on contract basis from contractors. These drivers are not stationed anywhere but they keep moving vehicles all over India. Do such contract drivers are covered in CLRA ?

      Thanks.

      1. comment-author
        Rishabh Ranjan

        Hi Yogesh,

        Every state has its own contract labour advisory board. In other words, every state might have its own version of the rules and regulations for contract labour. Please refer to your state’s CLRA rules and regulations for more clarity.

    7. comment-author
      Asad

      I have a construction contractor firm employing 8-10 employees but we hire sub-contractors who employ labour on our site whose number goes upto 50. Do i need CLRA?

    8. comment-author
      OTTIKUNTA MURALI

      Dear sir,
      our company applied for CLRA licence ,almost 10 days back ,still its status shows SUBMITTED AND PENDING FOR APPROVAL how many days to take its get approval .we are contractors dealing in oil and gas pipeline services.minimum 20 labours are need in site.is CLRA applicable for my company

      1. comment-author
        Rishabh Ranjan

        Hi Ottikunta,

        CLRA applicability varies from state to state. Once submitted, it will take 10-15 days for approval.

        I suggest you meet the authority in person to get the approval on CLRA.

    9. comment-author
      Deepak

      Hi – i have a 25 people each set up in Chandigarh and Pune – 25 in each location. I am PF and ESI Compliant. How do i get CLRA license? Is there actual need for getting CLRA license for me? How much time can it take to get it

      1. comment-author
        Rishabh Ranjan

        Hi Deepak,

        Every state has its own contract labour advisory board. In other words, every state might have its own version of the rules and regulations for contract labour. Please refer to your state’s CLRA rules and regulations for more clarity.

    10. comment-author
      Suresh

      We do comply with EPF and ESI for our employees and use these employees to provide services to Telcos. All these employees are hired on salary basis, they are about 25+. These Telcos business is seasonal in nature, meaning the orders vary quite drastically month on month with no visibility even for next month, Do we need to register for CLRA?
      Appreciate your help in this regard

      1. comment-author
        Rishabh Ranjan

        Hi Suresh,

        CLRA applicability varies from state to state. I suggest you meet the authority in person to get your doubts cleared.

      1. comment-author
        Rishabh Ranjan

        Hi Gaurav,

        CLRA is applicable on the basis of the number of employees deployed by contractor at the principal employer’s premises.

    11. comment-author
      Rakesh

      Dear Sir
      I’ve recently registered a consultancy firm for providing manpower to different organization but yet to receive any firm work order, I’ve obtained LIN number what should be next course of action ?

      1. comment-author
        Rishabh Ranjan

        Hi Rakesh,

        Based on the headcount/employee strength, you need to obtain statutory registrations such as Shops Act License, PF code allotment, ESI Code allotment, Professional Tax, and others.

    12. comment-author
      Rakesh

      I’ve already registered for shop and establishment but while going further for registering for contract labour regulation act the portal is asking for V form number from principal employer, though V form under regulation 21(2) has been issued by the firm who is ready to deploy my manpower but they are not able to understand for V number, please help me..

    13. comment-author
      Amarjeet Singh

      We have a housekeeping manpower contract one the main agency. For CLRA registration, we have issued Form 5 to this agency. in addition, we have names of this agency and their vendors (for us, their vendors are sub-vendors) on Form 2. These sub-vendors also have to apply for CLRA. Do we need to issue Form 5 to these sub-vendors as well?

      Or the sub-vendors to apply for CLRA basis Form 5 to the main agency along with our Form 2 with their names mentioned?

      Please suggest.

      1. comment-author
        Rishabh Ranjan

        Hi Amarjeet,

        CLRA applicability varies from state to state. I suggest you meet the authority in person to get your doubts cleared.

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