Contract Labour License Consultant in Delhi –Licence Registration & Compliance Services
As a professional Labour License Consultant, we provide professional labour law consultancy services to help businesses understand their compliance responsibilities and navigate applicable licensing procedures. It is an essential responsibility for businesses employing contract workers, engaging manpower contractors, or operating in industries where specific licenses are required.
Understanding Labour License
What Is License under OSH & WC code 2020 ?
Labour license is particularly relevant for businesses engaged in manpower supply, security services, housekeeping, facility management, construction, manufacturing, and other activities involving contract labour. The requirement to obtain a licence depends on the nature of the work, the number of contract workers, and the applicable statutory provisions and rules.
A Licence under the Occupational Safety, Health and Working Conditions (OSH & WC) Code, 2020 is a statutory authorization required for contractors who fall within the applicable contract labour licensing provisions. The OSH & WC Code, 2020, was introduced by the Government of India to consolidate and simplify various labour laws relating to occupational safety, health, working conditions, and contract labour. Its aim to establish a more streamlined compliance framework while protecting workers’ rights and promoting safer working environments.Â
The purpose of obtaining a Manpoower licence under the New Labour Codes is to support lawful contract labour operations and ensure compliance with the prescribed licensing conditions. The Code also addresses occupational safety, health, and working conditions, including responsibilities relating to worker welfare and workplace protection.
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 obtain Labour License
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A Labour Licence is generally required by contractors who employ 50 or more contract labourers. It helps ensure that contractors and employers comply with legal obligations relating to contract workers and other labour welfare provisions. If the contractor does not hold a valid licence, the principal employer becomes directly liable under the law.Â
Labour License Validity
Under the Occupational Safety, Health and Working Conditions (OSH & WC) Code, 2020, a labour license issued for engaging contract labour will be valid for 5 years from the date of issue. The contractor can renew license through the prescribed portal and follow the applicable rules regarding submission timelines and fees.Â
Renewal and Amendments
Timely renewal helps contractors maintain continuity of their licensing status and avoid disruptions in business operations.If any details change, such as the authorised number of contract workers, employer information, work location, or other particulars covered by the licence, the contractor should apply for an amendment through the prescribed procedure.
10+
Years of Experiences
Central vs. State Labour Licence Which Applies to You?
Central License
A Central Government labour licence may be applicable to contractors engaged in contract labour in establishments or work falling under the jurisdiction of the Central Government. This may include certain central government departments, railways, mines, major ports, and other establishments covered by the applicable central labour law framework.Â
State License
A State Government labour licence may be applicable to contractors engaged in establishments or work falling under the jurisdiction of the respective State Government. This may include certain factories, commercial establishments, construction projects, and other establishments governed by state-level jurisdiction.Â
Get professional guidance from our expert Contract Labour Licence Consultant in Delhi to reduce documentation errors, avoid unnecessary delays.
Types of license in Shram Suvidha 2.0
Services For Labour License Registration
01
New Labour Licence Registration
Get assistance for new contractor licence applications under the applicable OSH Code provisions, including document verification, application preparation, submission through the Shram Suvidha Portal.
02
Licence renewal
Our experts help contractor in licence renewal, including document and record verification, preparation of renewal applications, and timely submission to the concerned licensing authority, ensure continuity of licence validity in accordance with applicable rules and prescribed timelines.
03
License Amendments
We provide assistance with amendments to existing contractor licences, including revisions to the authorised number of contract workers, changes in work location or address, the addition of new work sites, and other modifications to licence particulars.
01
Inspection & Compliance Support
We guide users with labour department inspections, notices, and contract labour compliance matters. We also provide guidance on applicable legal requirements, and assistance during inspections process.
02
Annual Return Filing
We prepare and fill annual returns related to contract labour compliance, in accordance with applicable labour laws and prescribed requirements and also help businesses maintain accurate compliance records and minimize the risk of errors, delays, and potential penalties.
03
Security Deposit Refund
Getting your Labour License security deposit refunded doesn't have to be complicated. Our experienced Labour License Consultants provide professional assistance throughout the refund process, helping you with documentation, application formalities, and coordination with the concerned authorities.
Licence Fees & Security Deposit Under New Labour Codes
What is e-BG for a Labour Licence Security Deposit?
E-BG stands for Electronic Bank Guarantee. It is a digital bank guarantee issued by a bank in favour of a government department or other authorised beneficiary as security for fulfilling specified legal or contractual obligations.
An e-BG may be required as security for compliance with the applicable licence conditions. Instead of depositing the entire security amount in cash, the contractor may provide a bank guarantee if the relevant rules and licensing authority permit it. The bank undertakes to pay the beneficiary up to the guaranteed amount if the guarantee is validly invoked under its terms.
Where can you obtain an e-BG?
Visit your bank
Contact your bank branch or relationship manager and ask for an Electronic Bank Guarantee (e-BG) for a Labour Licence security deposit. Check whether your bank supports e-BG issuance through NeSL.
Submit the required details
Provide the required security amount, beneficiary department's name, prescribed guarantee format, validity period and claim period. The bank may request KYC, financial documents, margin money or collateral, depending on its assessment..
Get the e-BG issued
The bank processes the guarantee electronically, including digital stamping and signing where applicable. NeSL provides the digital infrastructure for e-BG issuance and storage.
Benefit of E-BG
How E-BG Works
Labour License Registration
Renewal/ Amendments
Compliance Inspections
Your Trusted Labour Law Compliance Partner
Our expert Labour License Consultant simplify licensing, renewals and statutory compliance, helping businesses operate with confidence.
In what form is the licence issued and what are its general conditions?
The licence shall be issued electronically in Form XIII. The general conditions of the licence include the following:
- The licence is non transferable.
- The number of contract workers employed shall not exceed the maximum number specified in the licence.
- Licence fees paid for grant or renewal are non refundable.
- Wages payable to contract workers shall not be less than the wages notified under the Code on Wages, 2019, or such higher wages as may be prescribed under any award, agreement, or settlement.
What conditions apply to a licensed contractor?
A licenced contractor shall operate subject to the following conditions:
- Working hours shall comply with the provisions of Section 25 of the Code and the applicable Rules.
- Wages shall be paid in accordance with the Code on Wages, 2019.
- Where contract labour is engaged at the premises of the Principal Employer, statutory amenities including toilets, washrooms, drinking water, bathing facilities (where applicable), changing rooms, first aid facilities, canteen, and crèche facilities shall be provided by the Principal Employer.
- All other facilities, benefits, and employment related entitlements shall be the responsibility of the contractor.
What action is taken if minimum wages are not paid by the contractor?
Where minimum wages are not paid to contract workers
- The Chief Labour Commissioner (Central) or an authorised officer may arrange payment to the affected workers by utilising the security deposit or invoking the bank guarantee.
- If wages remain unpaid after seven days from the end of the wage period, the Principal Employer shall pay the wages within the next fifteen days and recover the amount from the contractor or the available security.
Who is responsible for providing amenities to contract workers?
- Where the work is carried out at the premises of the Principal Employer, statutory amenities shall be provided by the Principal Employer.
- All other facilities and employment related benefits shall be provided by the contractor.
What is the wage period and payment timeline?
- The wage period shall not exceed one month.
- Wages shall be paid not later than the seventh day after the end of the wage period.
- Payment shall be made only through electronic or bank transfer modes
- List ItemDeductions shall be regulated by the Code on Wages, 2019.
What is the procedure for renewal of a licence?
An application for renewal shall be submitted online to the concerned Licence Authority:
- Not earlier than ninety days and not later than thirty days before expiry.
- The renewal fee shall be the same as the fee for grant of licence.
- Delayed applications shall attract an additional fee of twenty five per cent.
- Renewal shall be processed within seven days, failing which the licence shall be auto generated on the portal.
The completion certificate (Form-VI) is mandatory for refund. If the work is still in progress and the Principal Employer will not issue Form-VI, how can the contractor get the security deposit refunded?
If the earlier licence has expired but the contractor has applied for or obtained a fresh licence under the new Code to continue the same work, the contractor may apply for refund of the security deposit for the previous licence by submitting
- An undertaking stating that work is continuing and that Form-VI is not being issued because work is ongoing,
- A copy of the work order,
- Proof of application for, or issuance of, the new licence under the new Code,
- Any other required documents.
- The concerned Licensing Officer may accept the above in lieu of Form-VI and process the refund accordingly.