Labour License in Hyderabad – Complete Guide to Costs, Rules, Forms & FAQs

If you’re employing labourers or managing contract workers in Telangana, it’s important to understand the requirements of obtaining a labour license in Hyderabad. A labour license ensures your compliance with government labor laws and protects both employers and workers. In this detailed FAQ guide, you’ll find answers related to costs, eligibility, contract labor rules, Forms 3/5, and everything needed to stay legally compliant in 2025.

Section 1: What is the Cost of a Labour License in Hyderabad?

FAQs:

1. How many labourers are required for a labour licence in Telangana?
   A labour license is generally required if you employ 20 or more contract labourers.

2. What is Form 5 for a labour licence?
   Form 5 is the certificate issued by the principal employer for engaging a contractor under the Contract Labour Act.

3. How can I get labour contract licence in Telangana?
   Apply online via the Telangana Labour Department portal with Form IV, Form V, and necessary fee payment.

4. What are the benefits of a labour license?
   It ensures legal compliance, improves worker welfare, avoids penalties, and builds employer credibility.

5. How do I cancel my labour licence?
   Submit a cancellation request online through the labour portal with closure details and reasons.

6. Why is Form 5 required?
   It is mandatory for the contractor to obtain a license — issued by the principal employer.

7. What is Form IV for labour licence?
   Form IV is the application form submitted by contractors to obtain the labour license.

8. Who is the principal employer?
   The individual or organization employing a contractor for work is termed the principal employer.

9. What is the minimum manpower for labour licence?
   Typically, 20 or more contract labourers require registration under the Contract Labour Act.

10. What is labour license number?
    A unique number assigned to your labor license used for compliance and verification.

11. What is the cost of labour registration in UP?
    It varies but generally ranges between ₹1,000 to ₹5,000 depending on workforce size and duration.

Section 2: Who is Eligible for Labour License?

FAQs:

1. How can I become a labour law professional?
   By studying labour laws and regulations; often requires legal or HR background and practical experience.

2. Who is a contract labourer?
   A person hired through a contractor rather than directly by the company/employer.

3. What is the full form of BOCW?
   Building and Other Construction Workers.

4. What is the basic salary of a labourer?
   As per Telangana labour rules, the basic wage starts from ₹350/day and varies by skill and industry.

5. How do I get a labour contract?
   Draft a formal agreement between principal employer and contractor; register it under the CLRA Act.

6. What is the age limit for labour?
   Minimum age is 18 years for hazardous work and 14 years for non-hazardous under Indian law.

7. Who is the boss of labour?
   The employer (direct or principal) responsible for work conditions and payment.

8. What are labour license rules?
   Governed by the Contract Labour (Regulation & Abolition) Act, 1970 — covering employment terms, wage payment, safety.

9. What is the Payment of Wages Act?
   Ensures timely and fair wages to employees without unauthorized deductions.

10. How to get a BOCW license?
    Apply on the Telangana BOCW Welfare Board portal with worker details and contributions.

11. What is the full form of ILO?
    International Labour Organization.

12. What is Labour card in India?
    A worker identification card issued under the Labour Welfare Board for social benefits.

Section 3: What Are the Benefits of Labour License?

FAQs:

1. What is labour law certificate?
   A certificate or proof that the entity complies with labour laws and licensing requirements.

2. How to get ESI and PF registration?
   Apply on the ESIC and EPFO portals after obtaining labour license and employing 10+ workers.

3. What is Section 7 of the Contract Labour Act?
   Mandates registration of establishments employing contract labour.

4. Who is eligible for Labour Law?
   All establishments employing contract or construction workers are subject to compliance.

5. What is Form V for labour licence?
   Form issued by the principal employer to enable the contractor to apply for a labour license.

6. What are the overtime rules in India?
   Overtime is paid at twice the normal wage after 9 hours/day or 48 hours/week.

7. What is ESI in salary?
   Employee State Insurance deduction (0.75% employee + 3.25% employer).

8. What is UAN?
   Universal Account Number — a unique PF identification for employees under EPFO.

9. How to get employer code?
   Apply online while registering for EPFO and ESIC.

10. What is a labour license?
    A permit allowing employment of contract labour in accordance with the law.

11. What is the Payment of Bonus Act?
    Employers must pay a minimum 8.33% bonus if profit and employee eligibility criteria are met.

12. What is Section 10 of the Labour Law?
    Prohibits contract labour in core activities as per government notification.

Section 4: What is Form 3 for Labour License?

FAQs:

1. Is labour license compulsory?
   Yes, if you engage 20 or more contract workers, it is mandatory under the Contract Labour Act.

2. How many types of labour licenses are there?
   Based on number of workers, location, and contract type — generally varies by state guidelines.

3. Is Form 3 mandatory?
   Yes, for submitting returns and compliance under the Labour Contract Act in some states.