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Labour licence fees are a mandatory cost for businesses and contractors who engage contract workers in India. The licence is issued under the Contract Labour (Regulation and Abolition) Act, 1970, and the fees depend on the number of workers and state-specific labour rules. Knowing the correct fee structure helps businesses stay compliant, avoid penalties, and manage labour operations smoothly.
What Are Labour Licence Fees
Labour licence fees are statutory charges paid to the labour department for obtaining permission to employ contract labour. These fees ensure legal employment, worker welfare, and adherence to labour laws related to wages, safety, and working conditions.
Who Needs to Pay Labour Licence Fees
Contractors employing 20 or more contract workers must obtain a labour licence and pay the applicable fees. The principal employer must first register the establishment, after which the contractor applies for the licence.
How Labour Licence Fees Are Calculated
The fees are usually calculated based on the number of contract workers. States follow a slab-wise system, where higher worker strength attracts higher fees. In addition to government fees, a security deposit may also be required.
State-Wise Difference in Fees
Labour licence fees are not uniform across India. Each state labour department prescribes its own fee structure, payment mode, and validity period. Checking state-specific rules before applying is important.
Online Application and Fee Payment
Most states provide online portals for labour licence applications. Contractors can submit details, upload documents, and pay fees digitally, making the process faster and more transparent.
Validity and Renewal Costs
A labour licence is generally valid for one year or for the contract period. Renewal must be done on time to avoid late fees or penalties. Any increase in workers may require additional fees.
Why Professional Support Matters
Incorrect fee calculation or delayed payment can lead to rejection or penalties. Expert support ensures accurate filing, correct fee payment, and timely approval.
Conclusion
Understanding labour licence fees is essential for contractors and employers to remain legally compliant. Since fees vary by workforce size and state rules, proper planning and expert guidance from CorpZo help businesses avoid risks and manage labour compliance efficiently.
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