Updated on September 01, 2025 03:06:49 PM
In Odisha, anyone hiring 20 or more contract workers for any kind of work must have a labor contractor license. In order to guarantee equitable treatment of contract workers and suitable working conditions, this license is granted under the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act). This license must be obtained from the Labour Department if you are working as a contractor or hiring workers for another business in Odisha.
By regulating employment conditions, pay, and worker safety, the labor contractor license promotes openness and compliance. In order to obtain a license, one must apply online via Odisha's official labor portal, submit the necessary paperwork, including proof of identity, proof of address, employment contract, and work order, and pay the relevant government fees. To avoid legal repercussions, both individual contractors and company labor contract license holders must renew their licenses regularly.
In Odisha, obtaining a contract labor license has become simpler and more accessible thanks to online registration. According to Section 7 of the CLRA Act, the applicant must also register the establishment (principal employer) where the workers are deployed, and Section 12 applies to contractors who are applying for a license.
Obtaining a labor contractor license enhances credibility and trust in the business community, in addition to guaranteeing compliance.
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 Odisha , you need to submit the following documents during contract labour licence online registration:
The online registration process for a contract labour license in Odisha 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 Odisha 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 Odisha starts from @5,000.
The aforementioned fees are exclusive of GST.
Any contractor or business employing 20 or more contract workers in Odisha must obtain a labor contractor license. It safeguards the rights of both employers and employees and guarantees adherence to the CLRA Act of 1970. Avoiding legal problems and fostering trust in business operations are made possible by timely registration, appropriate documentation, and rule compliance. Obtaining the license guarantees efficient, legal, and competent labor engagement in Odisha, regardless of whether you are a business or an individual contractor.
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 Odisha 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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