Dear Senior,
Please brief me regarding the requirement of a labor license for a call center. We have branches in other parts of India. Is it necessary to obtain a labor license and professional tax license in other states? In any case, we are generating employment and reducing unemployment in our country. A simple and transparent policy should be in place to operate smoothly. Please, Senior, provide me with your valuable suggestions in this regard.
From India , Hyderabad
Acknowledge(0)
Amend(0)
Please brief me regarding the requirement of a labor license for a call center. We have branches in other parts of India. Is it necessary to obtain a labor license and professional tax license in other states? In any case, we are generating employment and reducing unemployment in our country. A simple and transparent policy should be in place to operate smoothly. Please, Senior, provide me with your valuable suggestions in this regard.
From India , Hyderabad
Acknowledge(0)Amend(0)
Registration under State Shops and Commercial Establishments Act, licence to run a business issued by the Panchyat/ Municipality/ Corporation and Profession tax are state subject and should be obtained separately for each branch/ office. It is okay that you can have a centralized payroll and pay the wages direct to the employees’ accounts from the HO, deducting the profession taxes along with other statutory deductions like PF and ESI, but you have to remit it with the local administrations of the place where your offices function.
Once you are registered with the labour department, you will be covered by the provisions of various Labour Acts like Payment of Wages Act, Minimum Wages Act, Maternity Benefit Act, Industrial Establishments (National and Festival Holidays) Act, Payment of Bonus Act, Payment of Gratuity Act, Industrial Disputes Act etc. In addition to these, Employees State Insurance Act and Employees Provident Fund and Misc. Provisions Act will also be applicable once you employ 10 persons (For EPF at present it is 20 but likely to be made 10 for coverage) For these you have to take separate registration also.
It is accepted that call centres like yours will generate employment opportunities and reduce unemployment. This will be the objective of other firms also. Therefore, on a claim that you will reduce unemployment, you will not be allowed to run the centre without taking registration from the Labour dept. or Local administration, or run it without paying minimum wages fixed for your industry, ie, call centre. Labour Laws are applicable to all establishments without reference to how do they contribute to economic growth of India.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
4766Once you are registered with the labour department, you will be covered by the provisions of various Labour Acts like Payment of Wages Act, Minimum Wages Act, Maternity Benefit Act, Industrial Establishments (National and Festival Holidays) Act, Payment of Bonus Act, Payment of Gratuity Act, Industrial Disputes Act etc. In addition to these, Employees State Insurance Act and Employees Provident Fund and Misc. Provisions Act will also be applicable once you employ 10 persons (For EPF at present it is 20 but likely to be made 10 for coverage) For these you have to take separate registration also.
It is accepted that call centres like yours will generate employment opportunities and reduce unemployment. This will be the objective of other firms also. Therefore, on a claim that you will reduce unemployment, you will not be allowed to run the centre without taking registration from the Labour dept. or Local administration, or run it without paying minimum wages fixed for your industry, ie, call centre. Labour Laws are applicable to all establishments without reference to how do they contribute to economic growth of India.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Dear Mohdyounus,
The answer by our Super Moderator, Mr. Madhu, is very perfect. The only thing I wish to add here is that I believe your question pertains to Labor License.
A Labor License is required to be obtained under the Contract Labor Act of 1970 by the contractor if they are executing contract work on the premises of the Principal Employer.
To my understanding, you are operating a call center in a premises you either rent or own, and not on the premises of your Principal. In such circumstances, a Labor License is not applicable to you.
From India, Mumbai
Acknowledge(0)Amend(0)
The answer by our Super Moderator, Mr. Madhu, is very perfect. The only thing I wish to add here is that I believe your question pertains to Labor License.
A Labor License is required to be obtained under the Contract Labor Act of 1970 by the contractor if they are executing contract work on the premises of the Principal Employer.
To my understanding, you are operating a call center in a premises you either rent or own, and not on the premises of your Principal. In such circumstances, a Labor License is not applicable to you.
From India, Mumbai
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Legal Clarification on Absconding & Contract Labour.pdf
1341335108_4081 00000_1-Picture s-of--Professio nal-Industrial- Labour-Law-Advi ser-Legal-Consu ltants.jpg