Updated on September 01, 2025 12:15:15 PM
The Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act) requires that you obtain a Labour Contractor License if you are hiring or supplying contract labor in Madhya Pradesh. This license guarantees that employers and contractors uphold appropriate labor laws and safeguard contract workers' rights.
Any business that employs 20 or more contract workers in Madhya Pradesh, whether it be a manufacturing facility, construction company, or service provider, must have a current labor contractor license. The license protects the principal employer and the contractor from legal issues and acts as evidence of legal compliance.
The contractor must submit an online application via Madhya Pradesh's official labor department portal in order to start the process. The application must be submitted with the required paperwork, such as proof of identity, proof of address, and proof of work contract. After verification, the license is granted for a certain amount of time and must be renewed on time.
While contractors must obtain a license under Section 12 of the CLRA Act, companies that hire contractors must also register their establishment under Section 7. Penalties, legal action, and even the suspension of business operations may follow noncompliance with these provisions.
Applying for a company labor contract license or completing Madhya Pradesh's online contract labor license registration guarantees that your company complies with the law and upholds moral hiring standards.
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 Madhya Pradesh, you need to submit the following documents during contract labour licence online registration:
The online registration process for a contract labour license in Madhya Pradesh 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 Madhya Pradesh 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 Madhya Pradesh starts from @5,000.
The aforementioned fees are exclusive of GST.
Businesses that use contract workers in Madhya Pradesh must obtain a labor contractor license. In addition to promoting openness, worker protection, and efficient corporate operations, it guarantees adherence to the CLRA Act of 1970. Timely registration and renewal help you stay out of trouble with the law and keep your reputation intact, whether you're a contractor or a business using contract labor. If you require assistance with the online registration or documentation process for a contract labor license, always seek professional advice.
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 Madhya Pradesh 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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