Labour License Registration in Hyderabad

If you’re an employer planning to engage contract labor or run a business involving manual workforce in Hyderabad, securing a Labour License Registration in Hyderabad is not just advisable—it’s mandatory. As per the Contract Labour (Regulation and Abolition) Act, 1970, any contractor or principal employer engaging 20 or more contract workers must obtain a valid labour license.

This guide provides everything you need to know about labour license registration in Hyderabad, including its necessity, benefits, eligibility, step-by-step process, required documents, penalties for non-compliance, expert tips, and FAQs.

What is a Labour License?

A Labour License is a government-issued certificate granted to contractors or employers authorizing them to employ contract workers lawfully. It is aimed at regulating working conditions, ensuring fair wages, and safeguarding the rights of laborers under Indian labour laws.

Who Needs Labour License Registration in Hyderabad?

Mandatory for:

Contractors engaging 20 or more contract workers in an establishment
Principal employers employing workers through contractors

Common Sectors Requiring Labour License:

Construction & Real Estate
Manufacturing & Industrial Units
Facility Management Services
Hospitals, Hotels & Educational Institutions
Event Management Companies

Real-Life Example: A construction firm in Gachibowli was penalized ₹1 lakh for failing to register for a labour license despite engaging 30 contract workers on site.

Benefits of Labour License Registration

Ensures legal compliance with labour laws
Builds credibility with clients and government bodies
Prevents penalties and legal disputes
Protects workers’ rights and working conditions
Aids in smooth approval for government contracts

Step-by-Step Labour License Registration Process in Hyderabad

Step 1: Identify Applicability

Check if your organization engages 20 or more contract workers

Step 2: Collect Required Documents

Identity proof of employer (PAN, Aadhaar)
Address proof of the establishment
Partnership deed/Company incorporation certificate
Work order or contract agreement
Details of workers (name, address, wages)
Copy of challan for license fee deposit
Form V from the principal employer (in case of contractor registration)

Step 3: Visit Telangana Labour Department Portal

Go to https://labour.telangana.gov.in

Step 4: Submit Application

Fill out Form IV for contractors or Form I for principal employers
Upload documents
Pay license fee and security deposit

Step 5: License Approval

Labour department reviews and may conduct an inspection
If compliant, license is granted within 15–30 working days

Labour License Fees in Hyderabad

The fees are based on the number of workers to be employed:

No. of Workers	Security Deposit (per worker)	License Fee (approx.)
Up to 20	₹90	₹1,000–₹2,000
21–50	₹90	₹3,000–₹5,000
51–100	₹90	₹6,000–₹10,000
100+	₹90	₹15,000+

Penalties for Non-Compliance

Violation	Penalty
Employing contract labour without license	Up to ₹5,000 fine and/or 3 months imprisonment
Failure to maintain registers or display notices	₹1,000–₹10,000
Non-payment of wages or benefits	Legal proceedings under labour law

Expert Tips for Hassle-Free Labour License Registration

Keep detailed records of contract workers
Use correct forms depending on your role (Form IV for contractor, Form I for principal employer)
Ensure timely renewal before expiry
Display license at the workplace
Hire a professional to avoid documentation errors

FAQs on Labour License Registration in Hyderabad

1. Is labour license mandatory for all employers?

Only if you engage 20 or more contract workers.

2. How long is the labour license valid?

Typically valid for one year and renewable annually.

3. Can I apply for a labour license online in Hyderabad?

Yes. Telangana Labour Department offers an online application facility.

4. What if I hire contract workers seasonally?

If at any point you engage 20 or more workers, registration becomes mandatory.

5. Do principal employers need a separate license?

Yes, especially if they directly engage contract workers or supervise through contractors.

Internal Links to Related Services

Conclusion: Stay Compliant with Labour Laws in Hyderabad

With increasing audits and stricter labour law enforcement, obtaining your Labour License Registration in Hyderabad is essential for smooth business operations. Beyond compliance, it demonstrates your commitment to ethical labor practices and enhances your reputation.

Let Sri Tirumala Tax Solutions assist you in securing your labour license quickly and accurately.