Labour license - full compliance for employers
Labour compliance in India involves multiple registrations and licenses - contract labour registration under CLRA, labour welfare fund, professional tax, ESI/PF registration, and state-specific labour laws. We handle all labour compliance requirements ensuring you stay compliant and avoid penalties.
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The key facts, in one place
Everything a founder usually has to piece together from five different pages, in one place.
- CLRA Act
- Mandatory for 20+ contract workers
- EPF
- Mandatory for 20+ employees
- ESI
- Mandatory for 10+ employees, ₹21,000 salary limit
- Professional Tax
- Varies by state, deducted from salary
What is Labour License?
Labour license refers to various registrations and compliance requirements under Indian labour laws. This includes Contract Labour Registration (CLRA), Labour Welfare Fund (LWF) registration, Professional Tax (PT) registration, and EPF/ESI registration for employers.
Each state has its own labour laws and requirements. Our platform handles all labour compliance across all Indian states, ensuring you meet every regulatory obligation.
Bizeneed visual guide
Labour license - full compliance for employers
Apply for labour license and contract labour registration online. CLRA compliance, labour welfare fund, professional tax, ESI/PF registration. Complete labour compliance for employers. From ₹2,999.
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Who Needs Labour Compliance?
Labour compliance is mandatory for:
- Employers with 20+ employees (EPF registration)
- Employers with 10+ employees earning up to ₹21,000 (ESI registration)
- Employers engaging contract labour (CLRA registration)
- Employers in states where Professional Tax is applicable
- Employers required to contribute to Labour Welfare Fund
- All employers under the Payment of Wages Act, Gratuity Act, and other labour laws
Our Labour Compliance Process
Assessment
We assess your workforce size, structure, and state-specific requirements.
Registrations
We handle EPF, ESI, PT, LWF, CLRA, and other mandatory registrations.
Returns Filing
We manage monthly and annual return filings with respective authorities.
Compliance Monitoring
We track compliance deadlines, send reminders, and ensure timely filings.
Advisory
We provide ongoing advisory on labour law changes and compliance requirements.
Labour License Fees & Plans
Starter
Basic labour compliance for small teams
- PT registration
- LWF registration
- Basic compliance
Growth
Complete compliance for growing businesses
- EPF + ESI + PT
- CLRA registration
- Monthly returns
- Compliance calendar
Enterprise
Full labour compliance management
- All registrations
- Annual returns
- Payroll integration
- Advisory support
Full fee breakdown
| Particulars | Government fee | Professional fee |
|---|---|---|
| Starter | Nil | ₹2,999 |
| Growth | Nil | ₹7,999 |
| Enterprise | Nil | ₹19,999 |
Frequently asked questions
Labour license refers to various registrations and compliances required under Indian labour laws including CLRA, EPF, ESI, Professional Tax, and Labour Welfare Fund registration.
CLRA (Contract Labour Regulation and Abolition Act) regulates the employment of contract labour. Any principal employer with 20+ contract workers must register under CLRA and obtain a licence for contractors.
Yes, EPF registration is mandatory for establishments with 20 or more employees. The employer and employee each contribute 12% of basic + DA towards EPF.
ESI registration is mandatory for establishments with 10 or more employees earning up to ₹21,000 per month. Both employer (4.75%) and employee (1.75%) contribute to ESI.
Professional Tax is a state-level tax deducted from employee salaries. Registration is mandatory in states where PT applies - including Karnataka, Maharashtra, West Bengal, Tamil Nadu, and others.
Labour Welfare Fund is a fund contributed by employers and employees for the welfare of workers. It is managed by state welfare commissioners and used for worker welfare activities.
Other compliances include Shops & Establishment Act registration, Payment of Wages Act compliance, Gratuity Act compliance, Maternity Benefit Act compliance, and Sexual Harassment (POSH) policy.
Penalties vary by law. CLRA violations can attract fines up to ₹1,000 per worker. EPF/ESI defaults can lead to imprisonment and heavy fines. State labour law violations have their own penalties.
Form 5A is the application for registration under CLRA. It must be filed by the principal employer before engaging contract labour.
Yes, all employers must comply with applicable labour laws. Some requirements apply only when thresholds are reached (e.g., EPF at 20+ employees), but it's good practice to start compliance early.
Form 12A is filed under EPF for intimating the commencement of business. It must be filed within 30 days of employing 20+ workers.
Form C is the annual return filed by ESI-registered employers showing employee contributions, benefits provided, and other operational details for the financial year.
The Minimum Wages Act requires employers to pay at least the minimum wages notified by the state government for different categories of employment. Non-payment attracts penalties including imprisonment.
POSH (Prevention of Sexual Harassment) compliance is mandatory for employers with 10+ employees. It requires forming an Internal Committee, developing a POSH policy, and conducting annual training programs.
The Payment of Wages Act mandates that wages be paid on time and without unauthorized deductions. It also specifies the mode of payment and penalties for delayed or non-payment.
Written by Bizeneed Editorial Team, Labour & Compliance Content Writers · Reviewed by CA Sunita Verma, Labour Law Consultant, 14+ years
Last updated 2025-09-01
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Ready for Labour Compliance?
Get started today with a free consultation.
Ready for Labour Compliance?
Get started today with a free consultation.