Updated on September 01, 2025 11:46:47 AM
A Labour Contractor License in Kerala is mandatory for any contractor or company employing 20 or more contract workers in a year. The Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act) states that this license guarantees that companies employ workers lawfully, pay them fairly, and safeguard the rights of workers in sectors such as manufacturing, services, hospitality, and construction.
The CLRA Act requires the contractor (the organization or person providing workers) to obtain a license under Section 12 and the principal employer (the business or establishment using contract labor) to register their establishment under Section 7. In Kerala, it is unlawful to hire contract workers without these registrations, and doing so may result in fines or legal action.
The Kerala Labour Department's online portal makes it easier and requires less paperwork to obtain a labor contractor license in Kerala. In addition to paying the required government fees and a refundable security deposit per employee, contractors and employers are required to produce documents such as identification proof, a certificate of company registration, labor contract details, photographs, and worker information.
Businesses can stay in compliance with labor laws, stay out of trouble with the law, and win over customers and authorities by maintaining a current Company Labour Contract Licence. Additionally, it guarantees safe working conditions, benefits, and fair pay for employees.
The first step to managing contract workers legally and ensuring seamless business operations for contractors and companies in Kerala is to complete the Labour Contractor Licence Online Registration.
A labor contractor license is required of any company or contractor that hires individuals under contract for a project or business. It is issued under the Contract Labour (Regulation and Abolition) CLRA Act, 1970, and ensures that companies handle contract workers following applicable labor regulations. A company or contractor that hires 20 or more contract workers per year needs to obtain this license in order to operate legally in India.
The license ensures that workers obtain fair wages, safe working conditions, and all other legal benefits while protecting the company from penalties or legal problems. It also assists businesses in establishing a reputation and maintaining smooth operations free from legal oversight.
Businesses can now register for a labor contractor license more easily and quickly from any place, thanks to online registration for contract labor licenses.
A labor contractor license is required for any contractor, business, or company that hires 20 or more contract workers per year for any project, site, or business activity. This license ensures that businesses manage their workforces under labor laws and was granted under the Contract Labour (Regulation & Abolition) CLRA Act of 1970.
Industries that include manufacturing, construction, cleaning, security, and event planning commonly use contract workers. Any contractor or company in these industries must obtain a Company Labour Contract Licence to operate legally. This license safeguards firms from penalties and legal problems while defending employees' rights by ensuring fair compensation, safe working conditions, and on-time payments.
To apply for a Labour Contractor License in Kerala, you need to submit the following documents during contract labour licence online registration:
The online registration process for a contract labour license in Kerala has made it easier to apply for a labour contractor license. Under the Contract Labour (Regulation & Abolition) Act of 1970, any contractor or company that employs 20 or more contract workers is required to obtain a Company Labour Contract Licence. Here’s how you can apply:
Register your establishment with the local labour department, if not already registered.
Visit the official state labour department portal and select the option for Contract Labour Licence Registration.
Fill out the application form (Form IV) with accurate details about the contractor, principal employer, and workers.
Upload required documents – identity proof, address proof, contract copy, worker details, and challan.
Pay the prescribed government fees and security deposit online as per the number of workers.
Submit the application and download the acknowledgment receipt.
Once verified, the labour department will issue the Labour Contractor License online.
The fees for a Labour Contractor License in Kerala depend on how many workers you hire. As per the Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act), charges vary based on the number of workers and whether you are applying for a State or Central license.
| Workers | Contract Labour Govt. Fee ₹ | State Establishment Registration Fee ₹ | Central Establishment Registration Fee ₹ |
|---|---|---|---|
| 0 - 50 | ₹ 37.50 | NA | ₹ 150 |
| 51 - 100 | ₹ 150 | ₹ 1,800 | ₹ 300 |
| 101 - 200 | ₹ 300 | ₹ 4,800 | ₹ 600 |
| 201 - 400 | ₹ 300 | ₹ 7,200 | ₹ 1,200 |
| 400 - 800 | ₹ 375 | ₹ 9,000 | ₹ 1,500 |
Note: Professional Fee for Labour Contractor License in Kerala starts from @5,000.
The aforementioned fees are exclusive of GST.
In Kerala, contractors and businesses with 20 or more contract employees must obtain a labor contractor license. Section 7 of the Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act) requires the principal employer to register, and Section 12 requires the contractor to obtain a license. The procedure is now quick and easy thanks to the Kerala Labour Department's web portal. Businesses can legally employ workers, avoid penalties, and guarantee fair wages and suitable working conditions for their workforce by submitting the required paperwork, paying the government fees, and depositing the refundable security amount.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
According to the CLRA Act, any contractor or business that hires 20 or more contract workers in a year needs to get a license.
The Contract Labour (Regulation & Abolition) Act of 1970 governs the license.
While Section 12 is for labor-supplying contractors, Section 7 is for principal employers registering their business.
Applying online, submitting paperwork, and paying the fee and security deposit are all possible through the Kerala Labour Department's website.
Required documents include identification, business registration, employee information, a contract, photos, and a fee challan.
If all the paperwork is in order, the license is typically granted in 7–15 working days.
Along with a refundable security deposit, the cost is contingent on the number of employees and whether you are a principal employer or a contractor.
Operating without a license can result in severe fines, legal action, and a prohibition on conducting business.
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