we are a trading firm in uttarpradesh and have only 3 employees. are we required to obtain license from labour department. if yes under which act we have to take it and what is the procedure. Please reply soon
From India, Moradabad
From India, Moradabad
Dear Ag.swapnil ji,
Labour Licence is issued under the Contract Labour (R&A) Act 1970. You are liable to take this Licence when you execute any work under contract and the said work is being executed in the premises or work place of the company who award the contract to you, with the help of 20 or more persons. This Licence is for that particular work place only.
You are a trader. This Licence is not applicable to you. You are liable to obtain a certificate under Shops and Establishment Act. This certificate is also called as Gumasta Licence.
From India, Mumbai
2556Labour Licence is issued under the Contract Labour (R&A) Act 1970. You are liable to take this Licence when you execute any work under contract and the said work is being executed in the premises or work place of the company who award the contract to you, with the help of 20 or more persons. This Licence is for that particular work place only.
You are a trader. This Licence is not applicable to you. You are liable to obtain a certificate under Shops and Establishment Act. This certificate is also called as Gumasta Licence.
From India, Mumbai
Hi, you need to obtain a license under shops & establishment act. If you wish we can obtain the license for your company for which we will charge a very nominal fee. Thanks, Nitesh verma 9038659740
From India, Bangalore
From India, Bangalore
Thanks to both of you for your replies. But please tell What are the consequences if this license is not obtained? What demand and other penalty can the labour department raise?
From India, Moradabad
From India, Moradabad
Dear Ag.swapnil,
It seems that instead of knowing the provisions of the Act applicable to your trading business, you are more interested to know about consequences if license is not obtained, demand and other penalty can be imposed by labour department. It is for your information that the Act provides that any person found guilty of an offence under the Act, shall be liable to fine, which may, for the first offence, extend to one hundred rupees and for every subsequent offence, to five hundred rupees.
Please do not think of violating the law as it seems to be cheaper in terms of money as explained above but it is really much costly in term of
harassment of attending the courts and paying the lawyer's fees for years together.
BS Kalsi
Member since Aug 2011
From India, Mumbai
It seems that instead of knowing the provisions of the Act applicable to your trading business, you are more interested to know about consequences if license is not obtained, demand and other penalty can be imposed by labour department. It is for your information that the Act provides that any person found guilty of an offence under the Act, shall be liable to fine, which may, for the first offence, extend to one hundred rupees and for every subsequent offence, to five hundred rupees.
Please do not think of violating the law as it seems to be cheaper in terms of money as explained above but it is really much costly in term of
harassment of attending the courts and paying the lawyer's fees for years together.
BS Kalsi
Member since Aug 2011
From India, Mumbai
Note that it is not actually 'licence' but registration under Shop & Commercial Establishment Act that is required. Varghese Mathew
From India, Thiruvananthapuram
From India, Thiruvananthapuram
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