Labour license - full compliance for employers

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.