Updated on September 03, 2025 12:02:52 PM
Under the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act), contractors in Uttar Pradesh who hire 20 or more people for any establishment must apply for a Labour Contractor License. This license is a legally required document that enables contractors to use contract labor for a variety of tasks, including manufacturing, construction, logistics, and security. Ensuring equitable treatment and safeguarding the rights of contract workers while preserving openness among contractors, employees, and principal employers is the aim of this license.
Through the state's labor department website, applicants for an Uttar Pradesh labor contractor license can submit an online application. It entails providing the required paperwork, including proof of identification, proof of address, a copy of the contract with the primary employer, and information about the employees. The license is valid for a certain amount of time after it has been verified and approved, and it needs to be renewed before then.
In Uttar Pradesh, having a current company labor contract license guarantees adherence to labor regulations, helps avert legal problems, and fosters a professional workplace. As part of the license requirements, employers and contractors must also make sure that social security standards, wages, and working conditions are appropriately adhered to.
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 Uttar Pradesh, you need to submit the following documents during contract labour licence online registration:
The online registration process for a contract labour license in Uttar 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 Uttar 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 Uttar Pradesh starts from @5,000.
The aforementioned fees are exclusive of GST.
Any contractor hiring 20 or more workers in Uttar Pradesh is required by law to obtain a labor contractor license. It protects the rights and welfare of contract workers and guarantees adherence to the CLRA Act of 1970. The license lowers the possibility of legal repercussions, encourages open labor practices, and boosts companies' reputations. By obtaining the license via the proper government channels, contractors uphold lawful and efficient operations across all Uttar Pradesh industries while also supporting moral employment standards.
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 Uttar 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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