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If you are a principal employer and you are likely to employ contract labour, then you must ensure that you are appropriately registered under the Contract Labour (Regulation and Abolition) Act, 1970 (the “Act”). This act is a piece of legislation enforced by the Indian government to regulate the use of contract labour and provide for their abolition in specific situations.

Here is a step-by-step guide on how to register as a principal employer under the Contract Labour Act in India:

Step 1: Obtain the Required Documents

Before registering, you must gather all the necessary documents. The documents that you will require include:

1. PAN card

2. GST registration certificate

3. Proof of Premises (Copy of Property Tax Receipt/ Electricity Bill/Telephone Bill/ Lease Agreement/ Rent Receipts)

4. Cancelled Cheque with the pre-printed name of the account holder

5. Identity proof of the principal employer

6. Passport size photograph of the principal employer.

Step 2: Submit the Application for Registration

Submit the application in Form-I to the registering authority within 30 days from the day you commence employing contract labour. The register of employers must be available to anyone who wishes to see it. The application must be signed and submitted with authenticated copies of documents.

Step 3: Payment of Fees

The fees for registration must be paid in the form of a demand draft. The fee for registration of principal employers varies according to the states.

Step 4: Compliance Under Labour Laws

To obtain registration under the Contract Labour Act, you must first comply with all applicable labour laws. The following are some of the critical labour laws applicable to contract labour.

1. Minimum Wages Act, 1948

2. Payment of Wages Act, 1936

3. Employees’ Provident Fund and Miscellaneous Provisions Act, 1952

4. Employees’ State Insurance Act, 1948

5. Payment of Bonus Act, 1965

6. Payment of Gratuity Act, 1972.

Step 5: Obtaining the Registration Certificate

Upon completion of all procedural formalities and compliance, the concerned authority will issue a Registration Certificate under the Contract Labour Act. The successful registration under the Act will allow you to employ contract labour without any legal obligations.

In conclusion, it is crucial to adhere to all the required formalities and compliance standards while registering as a principal employer. It ensures that you are lawfully employing contract labour and will protect you from any legal repercussions. Obtaining registration under the Contract Labour Act is an essential obligation for any principal employer in India.