Contract Labour Licence Registration in Maharashtra is mandatory for contractors engaging contract workers under the Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act). This licence ensures legal compliance, protection of workers’ rights, and accountability of both contractors and principal employers.
In this Saving Mantra guide, we explain what a Contract Labour Licence is and the step-by-step process for Contract Labour Licence Registration in Maharashtra, along with eligibility, documents, and post-registration compliance.
What is a Contract Labour Licence?
A Contract Labour Licence is an authorization issued by the Labour Department, Government of Maharashtra, allowing a contractor to employ a specified number of contract labourers for a particular establishment or project.
Who Needs Contract Labour Licence in Maharashtra?
Contract Labour Licence is mandatory for:
- Contractors employing 20 or more contract workers
- Contractors supplying manpower to factories, companies, or establishments
- Construction, manufacturing, infrastructure, and service projects
(Both Principal Employer registration and Contractor licence are required)
Benefits of Contract Labour Licence Registration
- Legal permission to engage contract labour
- Compliance with Maharashtra labour laws
- Protection from penalties and legal action
- Enhanced credibility with clients and authorities
- Ensures welfare and safety of contract workers
Step-by-Step Process for Contract Labour Licence Registration in Maharashtra
Step 1: Principal Employer Registration
The Principal Employer must obtain Establishment Registration under the CLRA Act from the Maharashtra Labour Department.
Step 2: Obtain Form V from Principal Employer
The contractor must obtain Form V, certifying authorization by the principal employer to engage contract labour.
Step 3: Prepare Required Documents
Collect all documents related to the contractor, establishment, manpower strength, and agreement.
Step 4: Online Application Submission
File the Contract Labour Licence application online on the Maharashtra Labour Department portal.
Step 5: Payment of Fees and Security Deposit
Pay the prescribed licence fee and security deposit, which depends on the number of contract workers proposed.
Step 6: Scrutiny by Labour Department
The Labour Officer verifies documents and may conduct a site inspection if required.
Step 7: Grant of Contract Labour Licence
Upon successful verification, the Contract Labour Licence is issued specifying the maximum number of workers and validity.
Documents Required for Contract Labour Licence (Maharashtra)
- PAN Card of contractor
- Business registration certificate
- Principal Employer registration certificate
- Form V issued by Principal Employer
- Agreement between contractor and employer
- Address proof of contractor
- List of contract workers
- Challans for fee and security deposit
(Document requirements may vary based on nature of work)
Fees & Security Deposit
- Licence fee varies based on number of workers
- Security deposit is calculated per worker as prescribed by Maharashtra Labour Rules
Validity & Renewal of Contract Labour Licence
- Licence is generally valid for 1 year or project duration
- Renewal must be applied before expiry to avoid penalties
Post-Registration Compliance
- Payment of minimum wages
- Timely salary disbursement
- Maintenance of statutory labour registers
- Compliance with PF, ESI, and safety laws
- Filing of periodic returns
Penalty for Non-Compliance
Failure to obtain a Contract Labour Licence may result in:
- Heavy fines and penalties
- Cancellation of contracts
- Legal prosecution
- Blacklisting by government authorities
Why Choose Saving Mantra for Contract Labour Licence Maharashtra?
- Maharashtra-specific labour law expertise
- Accurate documentation and online filing
- Transparent and affordable pricing
- Fast processing and follow-up
- End-to-end labour compliance support
Conclusion
Contract Labour Licence Registration in Maharashtra is a critical statutory requirement for contractors engaging contract workers. By following the correct step-by-step Contract Labour Licence registration process, businesses can operate legally, avoid penalties, and ensure worker welfare. Saving Mantra ensures a smooth, compliant, and professional Contract Labour Licence registration experience in Maharashtra.
Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal or professional advice. Labour laws, fees, thresholds, and procedures in Maharashtra may change from time to time. Readers are advised to consult qualified professionals before applying for Contract Labour Licence Registration or engaging contract labour.