The Contract Labour (Regulation & Abolition) Act, 1970 (CLRA Act) mandates that businesses employing contract workers must obtain CLRA registration to ensure legal compliance and protect worker rights.

This guide explains the step-by-step procedure for obtaining CLRA registration, including required documents, timelines, and compliance requirements.

Who Needs CLRA Registration?

CLRA registration is mandatory for:
1️⃣ Principal Employers – Any business employing 20 or more contract workers.
2️⃣ Contractors – Agencies or firms supplying contract labor to companies.

Without registration, businesses cannot legally hire contract workers.

Step-by-Step Procedure for CLRA Registration

For Principal Employers

Step 1: Prepare Necessary Documents

Before applying, ensure you have:
✅ Proof of business registration (GST certificate, Incorporation Certificate)
✅ List of contractors & contract workers
✅ Agreement between employer and contractor
✅ Employee wages and working condition details

Step 2: Submit Application to the Labour Department

• Employers must apply to the Labour Commissioner’s office in their jurisdiction.
• Application Form: Form I (Application for Registration)
• Submit along with prescribed fees & documents.

Step 3: Inspection & Verification

• The Labour Department reviews submitted documents.
• They may conduct a site visit to verify:
  ✔ Worker conditions
  ✔ Wage payments
  ✔ Workplace safety measures

Step 4: Issuance of Registration Certificate

• If all criteria are met, the Registration Certificate (RC) is granted.
• This legally allows the company to hire contract workers.
• The RC must be displayed at the workplace.

For Contractors (Labour License Application Process)

Step 1: Obtain No-Objection Certificate (NOC)

• Contractors need an NOC from the Principal Employer before applying.

Step 2: Submit Form IV Application

• Application is submitted to the Labour Commissioner.
• Documents required:
  ✅ Business registration proof
  ✅ Details of contract workers
  ✅ Agreement with the employer
  ✅ Prescribed fees

Step 3: Approval & License Issuance

• The Labour Department reviews compliance standards.
• If requirements are met, a Labour License is issued.

⚠️ License Renewal: Must be renewed annually.

Post-Registration Compliance

📌 Non-compliance can lead to fines, license revocation, or contract termination.

Challenges in Obtaining CLRA Registration

❌ Time-Consuming Process – Multiple approvals required.
❌ Complex Paperwork – High documentation burden.
❌ Legal Compliance Risks – Errors may result in penalties.

Why Choose ASK ASSOCIATES for CLRA Registration?

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✔ End-to-End Compliance Management
✔ Timely Renewals & Filing Assistance

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