The Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act) mandates that businesses employing contract workers must obtain CLRA registration to ensure legal compliance and protect worker rights.
This guide explains the step-by-step procedure for obtaining CLRA registration, including required documents, timelines, and compliance requirements.
Who Needs CLRA Registration?
CLRA registration is mandatory for:
1️⃣ Principal Employers – Any business employing 20 or more contract workers.
2️⃣ Contractors – Agencies or firms supplying contract labor to companies.
Without registration, businesses cannot legally hire contract workers.
Step-by-Step Procedure for CLRA Registration
For Principal Employers
Step 1: Prepare Necessary Documents
Before applying, ensure you have:
✅ Proof of business registration (GST certificate, Incorporation Certificate)
✅ List of contractors & contract workers
✅ Agreement between employer and contractor
✅ Employee wages and working condition details
Step 2: Submit Application to the Labour Department
- Employers must apply to the Labour Commissioner’s office in their jurisdiction.
- Application Form: Form I (Application for Registration)
- Submit along with prescribed fees & documents.
Step 3: Inspection & Verification
- The Labour Department reviews submitted documents.
- They may conduct a site visit to verify:
✔ Worker conditions
✔ Wage payments
✔ Workplace safety measures
Step 4: Issuance of Registration Certificate
- If all criteria are met, the Registration Certificate (RC) is granted.
- This legally allows the company to hire contract workers.
- The RC must be displayed at the workplace.
For Contractors (Labour License Application Process)
Step 1: Obtain No-Objection Certificate (NOC)
- Contractors need an NOC from the Principal Employer before applying.
Step 2: Submit Form IV Application
- Application is submitted to the Labour Commissioner.
- Documents required:
✅ Business registration proof
✅ Details of contract workers
✅ Agreement with the employer
✅ Prescribed fees
Step 3: Approval & License Issuance
- The Labour Department reviews compliance standards.
- If requirements are met, a Labour License is issued.
⚠️ License Renewal: Must be renewed annually.
Post-Registration Compliance
Compliance Requirement | Responsible Party |
---|---|
Maintain Employee Records | Principal Employer & Contractor |
Ensure Minimum Wages Are Paid | Contractor |
Provide Safe Working Conditions | Principal Employer |
File Annual Returns | Principal Employer & Contractor |
📌 Non-compliance can lead to fines, license revocation, or contract termination.
Challenges in Obtaining CLRA Registration
❌ Time-Consuming Process – Multiple approvals required.
❌ Complex Paperwork – High documentation burden.
❌ Legal Compliance Risks – Errors may result in penalties.
Why Choose My Jama Kharch for CLRA Registration?
✔ Fast & Hassle-Free CLRA Registration
✔ Expert Legal Guidance & Documentation Support
✔ End-to-End Compliance Management
✔ Timely Renewals & Filing Assistance
Avoid delays & penalties – Get expert CLRA registration support with My Jama Kharch!
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