Updated on September 01, 2025 03:06:49 PM
In Punjab, anyone who supplies or hires 20 or more contract laborers for any kind of work must have a labor contractor license. The Contract Labour (Regulation and Abolition) Act of 1970 requires this license, which guarantees that companies and contractors follow the law. Before beginning operations, you must obtain the Company Labour Contract Licence, regardless of whether you are a business hiring contract workers or an independent labor supplier.
The online registration process for Punjab's Contract Labour Licence has been simplified, making it simpler for candidates to finish the steps online. The license helps the employer stay credible and stay out of trouble while also defending the rights of employees. It lays out precise obligations for pay, working conditions, and other welfare benefits.
Applicants must provide proof of identification, proof of business address, information about the number of employees, and other pertinent data for their registration to be accepted. Contractors can guarantee efficient business operations and adherence to state labor laws by obtaining a labor contractor license.
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 Punjab , you need to submit the following documents during contract labour licence online registration:
The online registration process for a contract labour license in Punjab 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 Punjab 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 Punjab starts from @5,000.
The aforementioned fees are exclusive of GST.
Any contractor or business that employs 20 or more contract workers in Punjab is required by law to obtain a Labour Contractor License. It protects workers' rights and welfare and guarantees adherence to the CLRA Act of 1970. In addition to avoiding legal issues, timely registration improves transparency and confidence in labor-related transactions. Before starting work, all Punjabi labor contractors should finish the licensing process for efficient and legal operations.
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 Punjab 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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