A labor license, also known as a labor registration certificate, is a legal document that authorizes an establishment to engage in activities involving labor employment. It is issued by the respective State labor Department under the provisions of the labor laws applicable in the state. The license ensures that employers adhere to labor welfare regulations, maintain healthy working conditions, provide adequate safety measures, and fulfil other statutory obligations.
Eligibility Criteria to Obtain a Labor Certificate
The eligibility criteria for obtaining a labor license may vary depending on the state and the specific industry. However, the general eligibility criteria are as follows:
1- Business Entity: The applicant must be a legal entity, such as a company, partnership firm, or proprietorship, registered under the applicable laws.
2- Business Category: Certain industries, such as factories, construction, and contract labor, are required to obtain a labor license irrespective of the number of workers employed.
3- Employee Strength: The requirement for a labor license is typically triggered when an establishment employs a certain minimum number of workers, which may vary from state to state. For example, in some states, it may be applicable if the establishment employs 10 or more workers, while in others, it may be 20 or more workers.