Golden Verdict
Business Licence

Stay compliant with CLRA Registration for contract labour.

The Contract Labour (Regulation & Abolition) Act, 1970 requires principal employers and contractors engaging 20 or more contract workers to register with the state labour authority. Non-compliance attracts heavy penalties. We handle both principal employer and contractor registrations end-to-end.

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CLRA Registration India

CLRA Certificate Issued in 7 Days*

*Timeline is indicative and may vary based on document verification and government processing.

What is CLRA Registration?

The Contract Labour (Regulation & Abolition) Act, 1970 governs the engagement of contract workers in India. It applies to every establishment employing 20 or more contract workers and every contractor supplying 20 or more workers on any day during the preceding 12 months. The Act mandates registration for Principal Employers (Form I) and licensing for Contractors (Form IV) with the appropriate state government authority (Registering Officer / Sub-Divisional Labour Officer). The Act ensures contract workers receive proper wages, welfare facilities, canteen, restrooms, and first-aid facilities. Both the principal employer and contractor must maintain prescribed registers, display notices, and submit annual returns. Failure to comply exposes businesses to fines, imprisonment, and civil liability.

Who Needs CLRA Registration?

  • Principal Employers — any establishment (factory, mine, plantation, port, railway, government department) engaging 20+ contract workers
  • Contractors — any labour supply agency or individual providing 20+ workers to a principal employer
  • Construction companies using sub-contracted labour at project sites
  • IT companies and BPOs engaging contract staff through placement agencies
  • Manufacturing units, warehouses, and logistics companies with contract workforce
  • Hospitals, hotels, and service establishments with housekeeping/security contractors

Types of CLRA Registration

Principal Employer Registration (Form I):

Filed with the Registering Officer by the establishment engaging contract labour. Grants a Certificate of Registration specifying the establishment details and maximum number of contract workers permitted.

Contractor Licence (Form IV):

Filed by the labour contractor/agency. Specifies the principal employers the contractor can supply to, the number of workers, and the nature of work. Renewed annually.

Form V Certificate:

Certificate issued by the Principal Employer to the contractor confirming engagement. Required by contractor before applying for licence. Golden Verdict assists in obtaining this.

Penalties for Non-Compliance

Operating without registration:

Fine up to ₹1,000 for principal employer; up to ₹500 for contractor. Continued violation attracts further fines per day.

Non-payment of wages by contractor:

Principal employer becomes jointly liable. Labour court can order payment recovery with 15% interest penalty.

Non-filing of annual returns:

Fine up to ₹500 per return. Labour inspectors may initiate prosecution for repeated non-compliance.

Non-provision of welfare facilities:

Fine up to ₹1,000. In case of serious welfare violations, imprisonment up to 6 months may be awarded.

CLRA Compliance Calendar

Registration / Licence Renewal

Deadline: Before expiry (annually)  |  Applicable to: Both PE and Contractor

Annual Return (Form XXIV)

Deadline: 31 January each year  |  Applicable to: Principal Employer

Annual Return (Form XXV)

Deadline: 31 January each year  |  Applicable to: Contractor

Register of Contractors

Deadline: Maintained at all times  |  Applicable to: Principal Employer

Muster Roll & Wage Register

Deadline: Maintained at all times  |  Applicable to: Contractor

Wage Slip Issuance

Deadline: Before wage payment  |  Applicable to: Contractor

What We Handle for You

1

Determine CLRA applicability based on your worker count and industry

2

Prepare and file Form I (Principal Employer Registration) with state labour department

3

Obtain Form V certificate from PE and file Form IV (Contractor Licence)

4

Manage labour department inspection and address deficiency notices

5

Set up prescribed registers — muster roll, wage register, contractor register

6

File annual returns (Form XXIV / XXV) before 31 January deadline

7

Annual licence renewal before expiry to maintain compliance

How It Works

1

Share Your Details

Fill a short form or call us. We collect your requirements and all documents online — no physical visit needed.

2

Expert Assignment

A dedicated specialist with expertise in your service category is assigned to your case within 24 hours of payment.

3

Work in Progress

Your expert prepares documents, files applications with the relevant authority, and follows up on your behalf.

4

Delivery

Your registration certificate, legal document, or filed return is delivered digitally to your Golden Verdict dashboard.

Business Licence service

Get Your CLRA Compliance Without Any Hassle

Principal employer and contractor registration, annual returns, and ongoing CLRA compliance — all managed for you.

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Custom Quote

Pricing tailored to your specific requirements

Why Golden Verdict For
CLRA Registration?

CLRA compliance involves dual-layer registration — principal employer and contractor — with state-specific application procedures, inspections, and annual filings. Golden Verdict identifies the applicable registering authority in your state, prepares Form I / Form IV applications with all required documents, manages labour department inspections, and ensures timely submission of annual returns. We also advise on contract labour welfare obligations and wage compliance to prevent show-cause notices.

Contract labour compliance done right — Golden Verdict protects your business.

Expert legal team at Golden Verdict

Frequently Asked Questions

What is the threshold for CLRA applicability?+
The CLRA applies if: (a) as a Principal Employer, your establishment engages 20 or more contract workers on any single day during the preceding 12 months, or (b) as a Contractor, you supply 20 or more workers to any principal employer. The count is cumulative across all contractors/establishments.
What is the difference between Principal Employer registration and Contractor licence?+
A Principal Employer (the company that hires contract labour) must obtain a Certificate of Registration under Form I. A Contractor (the labour supply agency) must obtain a Licence under Form IV. Both are issued by the state's registering officer (labour department). The contractor's licence specifies the establishments where labour can be supplied.
Is CLRA registration a one-time process?+
No. Registration/licence must be renewed annually. Both principal employers and contractors must submit annual returns (Form XXIV for PE, Form XXV for contractor) disclosing the number of contract workers, wages paid, welfare provided, and contractor details. Failure to file returns on time attracts penalties.
Is the principal employer responsible if the contractor doesn't pay workers?+
Yes — under Section 21 of the CLRA, if a contractor fails to pay wages, the principal employer is jointly liable to pay those wages and recover them from the contractor. This is known as vicarious liability. It is critical for principal employers to audit contractor wage compliance regularly.
What welfare facilities must a contractor provide at the principal employer's premises?+
Contractors must provide: canteen (if 100+ workers), rest rooms (if workers travel more than 5 km), first-aid boxes, drinking water, latrines and urinals (separate for men and women), and washing facilities. If the contractor fails to provide these, the principal employer is responsible and can recover costs from the contractor.
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Ready to get your CLRA Registration?

The Contract Labour (Regulation & Abolition) Act, 1970 requires principal employers and contractors engaging 20 or more contract workers to register with the state labour authority. Non-compliance attracts heavy penalties. We handle both principal employer and contractor registrations end-to-end.

“Contract labour compliance done right — Golden Verdict protects your business.”

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