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Annual Return
Labour Law Wale
Are you looking for an experienced labour license Consultant in Delhi?
compliance is an essential responsibility for businesses employing contract workers, engaging manpower contractors, or operating in industries where specific licenses are required. Understanding the applicable laws, preparing the correct documentation, and completing registration procedures on time can be challenging for contractors.
We provide professional labour law consultancy services to help businesses understand their compliance responsibilities and navigate applicable licensing procedures. Whether you are a contractor, company, factory, construction business, manpower supplier, or service provider, our consultancy aims to make the compliance process more organized, transparent, and convenient.
Our Mission
Is to help employers identify their applicable requirements, prepare the necessary documents, submit applications through the relevant government portals, and address procedural issues that may arise during the licensing process. Professional guidance can reduce documentation errors, avoid unnecessary delays caused by incomplete applications, and help businesses maintain better compliance records. We're not just consultants — we're your compliance partner, invested in your long-term success. Trusted by businesses that want it done right, on time, every time.
What Is Contract Labour Licence Under OSH & WC Code?
A licence under the Occupational Safety, Health and Working Conditions (OSH & WC) Code, 2020 is a legal authorisation required for contractors covered by the applicable provisions to engage or supply contract labour.
The licence is relevant to contractors working in sectors such as construction, manufacturing, housekeeping, security services, facility management and manpower supply. It helps ensure that contractors meet the licensing requirements applicable to their work.
Under the Code, contractors must check whether they are required to obtain a licence before engaging contract labour. The requirement depends on the applicable legal provisions, the nature of work and the relevant rules.
The licensing process may require details such as the contractor’s business information, the principal employer’s details, the nature of work, the work location and the number of contract workers. Supporting documents may also be required by the concerned authority.
Obtaining the required licence is an important part of meeting labour law obligations. Contractors should provide accurate information, submit the necessary documents and follow the applicable conditions of the licence. They should also keep their licence details updated whenever required under the relevant rules.
Before applying, contractors and principal employers should understand the licensing requirements applicable to their establishment and work arrangements. This helps them prepare the application correctly and avoid delays caused by missing information or documents.
The OSH & WC Code, 2020 provides the legal framework for occupational safety, health and working conditions, including provisions relating to contract labour. The applicable rules and implementation requirements should be checked before proceeding with a licence application.
50+
Contract workers – licence applicability threshold
5 Years
Validity of Contract Labour Licence
Employer Contribution
₹1,000
Security requirement per contract worker, as prescribed
₹21,000
monthly wage ceiling for ESI coverage
Did You Know?
Under OSH Code 2020, a single pan-India contractor licence covers multiple work sites across all states — replacing the old system of separate licences per establishment
Who must register?
Both the principal employer and the contractor have separate, independent registration and licensing obligations that must each be fulfilled — neither can delegate their responsibility to the other. If the contractor does not hold a valid licence, the principal employer becomes directly liable under the law.
Licence validity and Renewal
Under the OSH & WC Central Rules, 2026, a Labour Licence is generally valid for five years. Contractors must apply for renewal online through the Shram Suvidha Portal between 90 and 30 days before expiry. Late applications may attract an additional fee of 25%, as prescribed under Rule 91.
One Labour Licence for All India
Contractors handling projects in multiple states can apply for a single Labour Licence covering their work across India, subject to applicable rules and approval. This can reduce the need to manage separate licence applications for each state and make it easier to take up projects in different locations.
Contract Labour Licence: Central or State Government — Which Licence Do You Need?
If you are planning to start contract work or provide manpower to a company, one of the first things to check is whether your Labour Licence application comes under the Central Government or the State Government.
The correct authority depends on the establishment where the work is carried out and the applicable labour laws. Understanding this before applying can save you time and help you avoid unnecessary application errors.
1. Labour Licence Under the Central Government
If you are a contractor supplying manpower or providing contract labour services, it is important to check whether your work falls under the Central Government’s licensing jurisdiction. Applying to the correct authority helps you avoid unnecessary delays and application errors.
The application generally requires details of the contractor, principal employer, establishment, work location, nature of work and the number of contract workers. The documents and information must meet the requirements of the applicable rules.
Under the OSH & WC (Central) Rules, 2026, eligible contractors may apply for a single licence covering multiple states or the whole of India, subject to the prescribed conditions. This option can be useful for manpower agencies and contractors managing projects across different locations.
Before applying for a Central Labour Licence, make sure you have checked the applicable requirements and prepared the correct details and supporting documents.
2. Labour Licence Under the State Government
If your contract work falls under the State Government’s jurisdiction, you may need to apply for a Labour Licence through the relevant state authority. The applicable procedure depends on the state rules and the nature of the establishment and work.
For example, contractors providing housekeeping, security, maintenance or manpower services should check the licensing requirements for the establishment where their workers will be deployed. The required documents, application procedure and licence conditions may vary from state to state.
Choosing the correct licensing authority is important. Applying under the wrong authority can lead to delays or the need to correct your application. Before starting the process, confirm which rules apply to your contract and whether a licence is required for your particular work.
If you are unsure whether your contract falls under Central or State Government jurisdiction, review the applicable provisions before submitting your Labour Licence applicati
Recent Services
Unlock Your Business's Potential Today!
Code on Social Security 2020 — PF Changes
What Changed in Under New Social Security Code?
Before — Old EPF Act 1952
- Threshold was only 20 workers
- State-wise separate licences required
- Annual licence renewal every year
- Paper-based application process
- Multiple licences for multiple states
- Inter-state migrant workers not covered under same framework
- No provision for pan-India single licence
After — New CoSS 2020
- Threshold raised to 50 workers — uniform pan-India
- Single licence covers all states and work sites
- Licence valid for 5 years — no annual renewal
- Inter-state migrant workers included under same Code
- Penalties up to ₹2 lakh — strictly enforced
- Experience Certificate mandatory
- No sector exemptions anymore
- Principal employer liable if contractor defaults
What Your Business Must Do Now
- Check if your worker count crosses 50 — licence mandatory
- Cancel old CLRA licence — apply fresh under OSH Code
- Link all employees Aadhaar with UAN
- File Form XXI on Shram Suvidha Portal immediately
- → Pay ₹1,000 security deposit per contract worker
- Register voluntarily if below 20 staff
- Consult a PF expert — avoid penalties
Why Choose Us?
Labour Law Wale
Practical ESIC Knowledge. Clear Guidance. Support When You Need It.
Our Services
We offer solutions
Contract Labour Licence (new)
We handle new contractor licence applications under the OSH Code, check your documents, prepare and submit on the Shram Suvidha Portal, and guide you from start to finish.
Licence renewal
We manage the 5-year licence renewal process for contractors — reviewing records, preparing renewal applications, and filing on time so you never face a lapse in validity.
Amendment
We handle amendments to your existing contractor licence — whether it is a change in the number of workers, change in work location, addition of new work sites, or adress update
Inspection &Support
We handle labour department inspections and notices related to contract labour compliance — prepare the required registers, records, and documents, accompany you during inspection where needed, and guide you.
Annual Return Filing
We handle annual return preparation and filing, ensuring your contractor records are properly maintained and submitted within the required time.
Security Deposit Refund
We handle security deposit refund applications, prepare the required documents, and follow up with the concerned department until the refund is processed.
Licence Renewal
We manage the 5-year licence renewal process for contractors, including record review, worker details, document preparation and timely filing to keep your licence valid without disruption.
ESIC Sub-Code Registration
We handle eligible ESIC sub-code registration, including document preparation, application submission, and related follow-up until the registration process is completed correctly and without unnecessary delays where possible.
10+
Years of Experiences
Why Should a Company Be Covered Under ESIC
Stronger Employees. A More secure Businees
Meet Legal Requirements
Obtain the applicable Labour License when required under relevant labour laws and regulations. Ensure proper documentation, maintain statutory records, and follow applicable requirements for contract labour to help your business remain compliant and avoid potential penalties.
Qualify for Business Contracts
Many government departments and private companies require contractors to provide valid Labour License and relevant compliance documents before awarding contracts. Meeting these requirements can help your business qualify for eligible tenders, secure new projects, and build trust with clients.
Protect Your Company and Workers
A valid Labour License helps businesses comply with applicable labour laws while safeguarding workers' rights and welfare. Proper compliance promotes fair wages, safe working conditions, and transparent employment practices. It also helps reduce legal risks, avoid penalties, and protect the interests of both contractors and principal employers.
Radha
CEO
Strategic Steps
Industries We Serve with PF Consultancy Services
01
Manufacturing Industry
Factories, Automobile Companies, Garment & Textile Manufacturers, Food Processing Companies, Pharmaceutical Companies, Electronics Manufacturers, Chemical Companies and Packaging Companies.
02
IT & Software Companies
IT Companies, Software Companies, Technology Startups, BPO & KPO Companies, Call Centres, Web & App Development Companies, Digital Marketing Agencies and E-commerce Businesses.
03
Construction, Real Estate & Infrastructure
Construction Companies, Builders & Developers, Engineering Companies, Infrastructure Companies, Real Estate Businesses, Civil Contractors and Project-Based Establishments.
04
Healthcare & Pharmaceutical Services
Hospitals, Clinics, Diagnostic Centres, Nursing Homes, Healthcare Service Providers and Pharmaceutical Establishments.
05
Staffing, Manpower & Outsourcing
Recruitment Agencies, Manpower Service Providers, Labour Supply Companies, Temporary Staffing Agencies, Contract Staffing Companies, , Recruitment Process Outsourcing (RPO) Companies, Facility Staffing Providers.
06
Travel & Tourism
Travel Agencies, Tour Operators, Tourism Companies, Event Management Companies, Travel Support Services, Hotels & Resorts, Car Rental Companies, Travel Booking Companies and Adventure Tourism Companies.
07
Education & Training Institutions
Schools, Colleges, Universities, Coaching Institutes, Skill Development Centres, Vocational Training Institutes, Computer Training Centres and Educational Organisations.
08
Logistics, Transport & Warehousing
Logistics Companies, Transport Companies, Courier & Delivery Services, Warehousing Businesses, Fleet Management Companies, Freight Forwarding Companies, , Cargo Handling Companies and Moving & Relocation Companies.
8 ESIC Benefits for Employees
Timely & Proper Wage Payment
Every contract worker has the right to receive wages on time, in full, as per the agreed terms. The contractor must pay wages before receiving payment from the principal employer. Any delay is a direct violation under the OSH Code 2020.
Timely & Proper Wage Payment
- Email:info@example.com
Overtime Wages at Double Rate
If a contract worker works beyond standard working hours, they are legally entitled to overtime wages at twice the ordinary rate. This is a statutory right — the contractor cannot pay overtime at the regular rate or skip overtime payment entirely.
Overtime Wages at Double Rate
- Email:info@example.com
Equal Pay for Equal Work
Contract workers performing the same work as regular employees of the principal employer are entitled to equal wages. A contractor cannot pay contract workers less simply because they are on contract — if the nature of work is the same, the wage must be the same under the OSH Code 2020.
Equal Pay for Equal Work
- Email:info@example.com
Health and Medical Facilities
Where the nature of work involves health risks or hazardous conditions, the contractor must arrange for periodic health checkups for contract workers. Workers exposed to dust, chemicals, or other occupational hazards have a right to medical examination as prescribed under the OSH Code.
Health and Medical Facilities
- Phone:+1 (859) 254-6589
- Email:info@example.com
Rest Intervals and Weekly Off
Every contract worker is entitled to a rest interval of at least 30 minutes after 5 continuous hours of work. They are also entitled to one weekly day off. A contractor cannot schedule work in a way that denies workers their mandatory rest intervals or weekly off — even if the principal employer's operations require continuous work.
Rest Intervals and Weekly Off
- Email:info@example.com
Inter-State Migrant Worker Protections
If a contractor engages workers from another state, additional protections apply under the OSH Code 2020. These include displacement allowance, journey allowance for travel to and from the work location, suitable accommodation at the work site, and medical facilities. These are not optional — they are statutory entitlements for every inter-state migrant worker.
Inter-State Migrant Worker Protections
- Phone:+1 (859) 254-6589
- Email:info@example.com
Gratuity Eligibility After 1 Year
### **Gratuity Eligibility After 1 Year** If your contract worker completes one year of continuous service, they may be eligible for gratuity under the applicable provisions of the OSH & WC Code. Gratuity is calculated based on the worker’s eligible service and wages. Ensure gratuity is properly calculated and paid as per the applicable statutory requirements and prescribed rules.
Gratuity Eligibility After 1 Year
- Phone:+1 (859) 254-6589
- Email:info@example.com
No Forced or Bonded Labour
A contractor cannot hold back wages, documents, or identity proof to force a worker to continue working. Every contract worker has the right to leave after completing their engagement. Any form of forced or bonded labour arrangement is a criminal offence under Indian law.
No Forced or Bonded Labour
- Phone:+1 (859) 254-6589
- Email:info@example.com
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OSH code penalty
Most contractors think getting the labour licence is enough. But keeping the licence valid and following its conditions is equally important. Missing records, ignoring work-order requirements or violating licence conditions can create serious compliance issues.
Central Labour Licence Calculator
Calculate Licence Fees & Security Deposit Instantly
Licence Fee Slabs (Central Rules)
| NO. OF LABOURS | LICENSE FEE |
|---|---|
| 0 to 49 Workers | NIL (Exempted) |
| 50 to 100 Workers | ₹1,000 |
| 101 to 300 Workers | ₹2,000 |
| 301 to 500 Workers | ₹3,000 |
| 501 to 1,000 Workers | ₹5,000 |
| 1,001 to 5,000 Workers | ₹10,000 |
| 5,001 to 10,000 Workers | ₹20,000 |
| 10,001 to 20,000 Workers | ₹30,000 |
| Above 20,000 Workers | ₹40,000 |