Overview – CLRA Registration & Licensing

The Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act) governs the employment of contract labour in India. It applies to establishments employing 20 or more contract workers on any day during the financial year. Both principal employers and contractors meeting this criterion must register under the Act.

Benefits of CLRA Registration & Licensing

• Legal Compliance: Ensures adherence to the CLRA Act and avoids legal penalties.
• Worker Protection: Supports fair wages, proper working conditions, and welfare of contract labour.
• Government Schemes Access: Eligible for benefits and schemes offered to registered entities.
• Reduced Penalties: Helps prevent fines or legal actions through timely compliance.
• Better Brand Image: Shows commitment to lawful practices and worker well-being.
• Operational Efficiency: Maintains clear workforce records, aiding management.
• Lower Liability: Fulfilling health and safety norms lowers accident-related risks.

Eligibility for CLRA Registration

• Employs 20+ contract labourers in a financial year.
• Located within India.
• Engaged in any trade or business listed in the CLRA schedule.
• Not a government establishment.

Exemptions from CLRA Registration

• Employing contract labour for less than 15 days annually.
• Workers engaged in incidental or seasonal tasks.
• Establishments within Special Economic Zones (SEZs).

Documents Required

• Trade License
• AOA & MOA or Partnership Deed
• Factory License (if applicable)
• Other business registration certificates
• Address & identity proof
• Proof of contract labour employment

Importance for Principal Employers

The principal employer is legally accountable for contract workers under the CLRA Act. Responsibilities include:

• Registering with state authorities
• Providing basic amenities (canteens, restrooms, etc.)
• Ensuring fair wages and overtime
• Maintaining worker safety
• Fulfilling recordkeeping and reporting obligations

CLRA Compliance Requirements

• Registration with appropriate state authority
• Providing necessary facilities to workers
• Ensuring minimum wage payment and proper work conditions
• Regular maintenance of records and registers
• Filing statutory returns on time

When to Apply

Apply for CLRA registration immediately after employing 20 or more contract workers to avoid legal issues.

When CLRA Does Not Apply

• Work of casual/intermittent nature (not exceeding 120 days/year)
• Seasonal work (not exceeding 60 days/year)
• Tasks done by family members of the employer or contractor
• Apprenticeship programs under the Apprentices Act
• Construction or maintenance work by fewer than 20 contract workers
• Plantation sector work with fewer than 20 workers
• Power generation or distribution tasks with fewer than 20 contract workers

Penalties and Violations of CLRA

• Failure to Register: Up to 3 months' imprisonment or fine of ₹1,000, or both.
• Employment in Prohibited Establishments: Up to 6 months' imprisonment or fine of ₹2,000, or both.
• License Condition Violations: Up to 3 months' imprisonment or fine of ₹1,000, or both.
• Wilful Neglect of Provisions: Up to 6 months' imprisonment or fine of ₹2,000, or both.

Why Sperso Filings?

• Expert Legal Support: Skilled professionals focused on CLRA and labour compliance.
• Smooth Process: Complete support for documents, filing, and tracking.
• Customised Services: Tailored compliance solutions for your business.
• End-to-End Guidance: Help from registration through ongoing adherence.
• Proactive Risk Checks: Identify and reduce legal exposure.
• Transparent Pricing: Straightforward fee structure with no surprises.
• Responsive Assistance: Dedicated support team available throughout.
• Proven Expertise: Reliable track record in CLRA compliance services.