The Indian government’s endeavour to make business easier has found fruition with many initiatives in the last few years. Among these is a bid to make the legal issues around Contract Labour simpler for granting registration and licensing. The initiative is expected to make a difference to industries that employ a lot of blue collar workers.

The Contract Labour (Regulation and Abolition) Act, 1970 is a Central Act. However mostly all states have their own rules. Likewise Delhi also has its own rules called the Delhi Contract Labour (Regulation and Abolition) Rules, 1970. In the said Act there are two types of approvals, one is on the part of contractor, which is called license (section 12) and second is on the part of employer, which is called registration certificate (section 7).

As governments of every state have been focusing on ‘Ease of Doing Business’, to take it forward the Labour Department Government of NCT of Delhi, has decided to ease the procedure for granting of registration & license in the following manner:

1. Facility of filing of application form for license (Form IV)/registration (Form I) through online is available.
2. Application for license shall be supported by certificate issued by Principal Employer in form V.
3. Application form whether for license or for registration, shall be supported by MOA & AOA or partnership deed or Proprietor’s ID proof as the case may be.
4. Details of fee to be paid should be given in application form.
5. Wages shall be paid to the contract workers only through A/C payee Cheque/ECS transfer.
6. Contractor to comply all the conditions of license as provided in rule 25.
7. License/registration certificate shall be granted by concerned officer within 7 days from the date of receiving of application.

Article source: https://lexcomply.com/blog/ease-of-doing-business-delhi-contract-labour/

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