Contract Labour (CLRA) Licence & Registration

The Contract Labour (Regulation and Abolition) Act, 1970 regulates the employment of contract labour and provides for their welfare.

A principal employer engaging the threshold number of contract workers — commonly 20 or more, though this varies by state — must obtain Registration. Each contractor supplying such labour must obtain a Licence.

The Act requires welfare facilities, timely payment of wages, and proper record-keeping.

• Establishment and principal-employer / contractor details
• Number of contract workers engaged
• Form V from the principal employer (for the contractor licence)
• The prescribed fee and security deposit

1. 01

   Principal employer registers

   The principal employer obtains registration under the Act.

2. 02

   Form V is issued

   The principal employer issues Form V to the contractor.

3. 03

   Contractor applies for the licence

   The contractor files with documents, fee, and the security deposit.

4. 04

   Grant and ongoing compliance

   The licence/registration is granted; maintain registers and welfare facilities.

PBT handles both sides of CLRA compliance — registration and licensing.

• We confirm the applicable threshold for your state
• We obtain the principal-employer registration and the contractor licence
• We set up the registers and welfare-facility compliance
• We handle renewals and returns
• Scope and fees agreed in writing up front

• Who needs registration and who needs a licence?

  The principal employer obtains registration; each contractor supplying contract labour obtains a licence.

• What is the threshold?

  Commonly 20 or more contract workers, but the number varies by state.

• What is Form V?

  A certificate the principal employer issues to the contractor, required for the contractor's licence application.

• How long does it take?

  Typically a few working days to a couple of weeks, depending on the state and documentation.