Are you considering hiring contract labour in Andhra Pradesh? If so, it’s important to understand the state’s regulations around contract labour and the licence fees that accompany it.

In Andhra Pradesh, the Contract Labour Regulation and Abolition Act governs the employment of contract labour. According to the act, any establishment that employs 20 or more contract workers on any day of the preceding 12 months is required to obtain a licence from the licensing officer.

The licence fee for engaging contract labour in Andhra Pradesh is decided by the government and is subject to change from time to time. As of 2021, the licence fee for a year is Rs. 750 for every contract worker employed in the establishment. This means that if your establishment employs 100 contract workers, you would need to pay Rs. 75,000 as the licence fee.

It’s important to note that failure to obtain a licence or paying the required fee can result in penalties, including imprisonment and/or a fine. The authorities may also take action to shut down the establishment until the necessary licence is obtained.

To apply for a contract labour licence in Andhra Pradesh, you will need to submit an application to the licensing officer. The application should include details such as the name and address of the establishment, the proposed number of contract workers to be employed, the duration of the contract, and other relevant information.

In addition to the licence fee, establishments employing contract labour may also be required to make contributions to the Labour Welfare Fund. The contribution amount is determined by the government and is subject to change from time to time.

Employing contract labour in Andhra Pradesh can be a complex process, but following the regulations and paying the necessary fees can help ensure compliance and avoid penalties. As a professional, I recommend that you consult with a legal expert or a qualified professional to ensure that you are following the regulations and making the correct payments. With a little bit of planning and effort, you can set your business up for success and avoid costly legal issues down the road.