Licencing & Registrations -Labour License

Do you know about Labour Licenses under Shops and Establishment and Contract Labour?

 

The Shop and Establishment Act is applicable nationwide, and all the commercial establishments, such as the hotels, and eateries, amusement parks, theatres, and other entertainment houses, as well as any other such public amusement places, come under the purview of the Act.

 

Get to know what is commercial establishment meaning. The definition of a ‘Commercial Establishment’, as given in the Act is:

 

Any commercial sector, such as banking, trading or insurance establishments

 

Any establishment where individuals are employed or engaged to do office work or provide service

 

The hotels, eateries and boarding houses or a smaller café or refreshment house

 

Amusement and entertainment places such as theatres and cinema halls or amusement parks

 

All such above mentioned commercial establishments come under the Act and need to adhere to the norms and regulations set by the Act for the treatment of their employees.

 

The exceptions to the Act vary in the States and each State has given a list of shops and establishments act that come into the Act, and who require the registrations under the Act to run their business in the State.

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The Contract Labour (Regulation and Abolition) Act, 19701 was enacted to regulate the employment of

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contract labour in certain establishments and to provide for its abolition in certain circumstances.

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How it applicable to you?

 

Under Shops and Establishment

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If you are starting a commercial establishment or a shop, (as mentioned above), you need to file for registration under the Act, within 30 days of commencement of your establishment.

This registration is mandatory for several reasons, including the opening of the current account in a bank. This Shop and Establishment Act license, forms as a basic license and a proof of your business to apply for other registrations required to run a business in India.

Shop and Establishment forms are available online on the government website.

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Under Contract Labour

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The act is applicable to:

1. every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour;

2. every contractor who employs or who employed on any day of the preceding twelve months twenty or more workmen.

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Not  applicable to:

1. An establishment which performs an intermittent or casual nature of work.

2. The appropriate Government shall decide upon the intermittent or casual nature of work after consultation with the Central Board/ State Board.

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Do you need to submit any documents ?

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Under Shops and Establishment

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1. Form No-I i.e Application for Registration

2. Telugu Name Board Photograph of the particular shop or establishment

3. List of Employees

4. Copy of Rental deed or sale deed of the particular shop or establishment

5. I.D. proof of the employer

6. One passport size photographs of the employer

7. Certificate of Incorporation

8. Memorandum of Articles in case of Companies

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Under Contract Labour             

                                                                                                                    

Form No-I i.e Application for Registration

List of Contractors including details such as

1. Name and address of the contractor,

2. Nature of Work,

3. No.of Contract Labour engaged and

4. ate of commencement of contract work.

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Form No.-VI B i.e. Notice of Commence of Contract Work by the Principal Employer in  contract Labour License  

 

1. Form No-IV i.e Application for License

2. Copy of Form No.II i.e copy of certificate of Registration granted to the Principal Employer.

3. Form No.V- i.e. Certificate by the Principal Employer.

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Form No.VI A- i.e Notice of commencement of contract work by the contractor.

Copy of agreement or work order entered in between the Principal Employer and contractor

Joint Undertaking both by Principal Employer and Contractor stating for payment of notified minimum wages to the contract labour engaged by them.

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For your information – Contract Labour

 

Liabilities and responsibilities of Principal Employer

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1. The Principal Employer shall provide the essential amenities like Canteen (above 100 contract

2. labours), rest rooms, drinking water facilities and first aid facilities if the same is not provided by the

3. Contractor (Sec 16 to 19).

4. The expenses incurred on amenities by the Principal employer may be recovered from the contractor either by deduction of any amount payable to the contractor under any contract or as a debt payable by the contractor (Section 20).

5. The Principal employer must ensure the disbursement of wages through Contractor within the expiry of prescribed period by nominating a representative.

6. If the Contractor fails to make payment or makes short payment then, the principal employer shall be liable to make payment of wages in full or the unpaid balance and recover the amount so paid from the Contractor (Section 21).

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