Contract Labour Licence Renewal Form 2: Everything You Need to Know

If you run a business that employs contract labour in India, you are likely familiar with the Contract Labour (Regulation and Abolition) Act, 1970. This law mandates that any business that employs more than 20 contract labourers must obtain a license from the appropriate authorities. The license is valid for one year, and it must be renewed annually.

Renewing the contract labour license can be a daunting process, but it is essential to ensure that your business remains compliant with the law. The renewal process requires the submission of Form 2, also known as the `Application for Renewal of License to Employ Contract Labour.`

In this article, we will take a closer look at Form 2 and the renewal process for the contract labour license.

What is Form 2?

Form 2 is a legal document that businesses must submit to the appropriate authorities when applying to renew their contract labour license. The form is in two parts: Part A and Part B.

Part A of the form requires basic information about the business, such as its name, address, and contact details. It also asks for details about the license being renewed, including the license number, date of issue, and expiry date.

Part B of the form requires information about the contract labour employed by the business. This includes details such as the number of contract labourers employed, their job descriptions, and their wages.

The form must be signed by the authorized signatory of the business and submitted along with the necessary documents and fees.

Important Documents for Renewal

Along with Form 2, businesses must also submit other important documents to renew their contract labour license. These include:

1. A copy of the current contract labour license.

2. A copy of the memorandum of association and articles of association of the business.

3. A copy of the last audited balance sheet and profit and loss account of the business.

4. A certificate of registration of the company.

5. A copy of the PAN card of the business.

6. A copy of the PAN card of the authorized signatory.

7. A copy of the certificate of approval from the pollution control board, where applicable.

Renewal Fees

The fees for renewing the contract labour license vary depending on the number of contract labourers employed by the business. The fees are as follows:

1. For businesses employing up to 50 contract labourers – Rs. 2,500

2. For businesses employing between 51 to 100 contract labourers – Rs. 6,000

3. For businesses employing between 101 to 500 contract labourers – Rs. 12,000

4. For businesses employing more than 500 contract labourers – Rs. 20,000

Conclusion

Renewing the contract labour license is an essential task for any business that employs contract labour. Failure to renew the license can result in legal consequences, including fines and even the shutdown of the business.

Form 2 is the document that businesses must submit to renew their license, along with other important documents and fees. By ensuring that all the necessary requirements are met, businesses can continue to employ contract labour legally and avoid any legal consequences.