What is CLRA License?
The Contract Labour (Regulation & Abolition) Act, 1970 (CLRA) regulates the employment of contract labor in certain establishments and provides for its abolition in certain circumstances. A CLRA license is mandatory for contractors employing 20 or more workers.
Any establishment employing contract workers through a contractor must ensure the contractor holds a valid CLRA license. Non-compliance can result in severe penalties.
Why is CLRA License Needed?
Obtaining a CLRA license is not just a legal requirement but also a crucial step in maintaining ethical labor practices and protecting your business from legal complications:
Legal Compliance
Meets mandatory requirements under the Contract Labour Act, avoiding penalties up to ₹1000 and imprisonment up to 3 months.
Worker Protection
Ensures contract workers receive proper wages, working conditions, and welfare measures as mandated by law.
Principal Employer Safety
Protects principal employers from liability when contractors comply with CLRA provisions.
Advantages of CLRA License
Beyond compliance, obtaining a CLRA license offers several strategic benefits for your business:
Legal Recognition
Grants official recognition to your contract labor operations under Indian law.
Reputation Boost
Demonstrates your commitment to ethical labor practices to clients and partners.
Contract Eligibility
Enables bidding for government and large corporate contracts that require compliance.
Dispute Resolution
Provides clear legal framework for resolving labor disputes and grievances.
Steps to Get a CLRA License
Our streamlined process makes obtaining your CLRA license simple and stress-free:
Document Collection
We help gather all required documents including PAN, Aadhar, proof of establishment, and labor details.
Application Preparation
Our experts prepare and verify your application in Form IV with all necessary attachments.
Submission & Follow-up
We submit your application to the appropriate licensing officer and handle all follow-ups.
License Issuance
Upon approval, we ensure you receive your CLRA license and understand all compliance requirements.