Contract Labour License (CLRA)

Contract Labour (Regulation & Abolition) Act, 1970 (CLRA):
1. Section 1(4) — Applicability: the Act applies to every establishment in which 20 or more contract workmen are (or were, on any day of the preceding 12 months) employed, and to every contractor who employs 20 or more workmen.
2. Section 7 — Registration of principal employer: before engaging contract labour, the principal employer of a covered establishment must apply to the Registering Officer and obtain a Certificate of Registration in Form I. Engaging contract labour in a covered establishment without registration is prohibited and penalised under Section 23.
3. Section 12 — Licensing of contractors: a contractor engaging 20 or more contract workmen must hold a Licence granted by the Licensing Officer. The application is made in Form IV and the Licence is issued in Form VI under the Contract Labour (Regulation and Abolition) Central Rules, 1971, subject to conditions on wage payment and welfare amenities — canteen, rest rooms, drinking water, first aid — prescribed under the Rules.
4. Renewal: licences are valid for the period specified in the grant and must be renewed (Form VII) before expiry to avoid a compliance lapse for ongoing contract labour engagements.
Note: several states have separately notified thresholds and forms under their own CLRA rules, and the compliance position should be checked against the specific state's rules in addition to the central framework above.

We assist with applicability review, establishment registration, contractor licence documentation, and statutory compliance setup under CLRA. This is relevant where contract labour thresholds are met or client contracts require licence documentation.