Labour licence registration

The Contract Labour (Regulation and Abolition) Act, has been enacted by the Indian Legislature from the year 1970. The act intends to prohibit the employment of contract labour in certain circumstances and to regulate the working conditions of contract labour during employment. 

Under the Constitution of India, ‘labour’ is a subject matter of the concurrent list. Therefore, both Central and State Governments have the power to enact labour and employment legislations. 

You need to take separate labour licence for every unit under the CL Act. Even if you got two different contract from different PE, even than you need to obtain separate labour licence as per applicable conditions.

The proposed changes will enable single licens system across the country accordingly:

The Occupational Safety, Health, and Working Conditions Code, 2020 (‘OSHW Code’) subsumes 13 central labour legislations including the Contract Labour (Regulation and Abolition) Act of 1970 (‘CLRA Act’) which governs and regulates the employment of contract labour.

Once these labour codes are put into force, the existing regime concerning the contract labour will undergo significant changes.