Principal employer registration, contractor licences, registers and returns under the Contract Labour (Regulation & Abolition) Act, 1970 and the OSH Code.
CLRA compliance means meeting the contract labour obligations, originally under the Contract Labour (Regulation & Abolition) Act, 1970 and now under the OSH Code, 2020. The principal employer registers the establishment, contractors hold licences, both maintain registers and file returns, and the principal employer ensures contract workers receive wages and statutory benefits.
When you engage contract labour, the law makes you, the principal employer, responsible for registration, and ultimately liable if a contractor fails to pay wages or statutory dues. Contractors need their own licences, and both sides must maintain registers and file returns.
Paalan manages the principal employer's obligations, verifies that every contractor holds a valid licence and keeps compliant records, and files the returns on time, so your contract workforce does not become your biggest liability.
Everything we take ownership of under CLRA Compliance.
Registration certificate and amendments as contractors and headcount change.
Support for contractors' licences, renewals and validity tracking.
Registers of contractors, workmen, wages, deductions and overtime.
Half-yearly contractor returns and the principal employer's annual return.
Display of licences, wage rates, working hours and other statutory notices.
Monitoring of contractor wage and statutory payments to protect the principal employer.
Typical statutory timelines. Exact dates vary by state and notification, we maintain the calendar for each of your locations.
| Activity | Frequency | Due date |
|---|---|---|
| Contractor half-yearly return | Half-yearly | Commonly 30 July and 30 January |
| Principal employer annual return | Annual | Commonly by 15 February |
| Wage payment verification | Monthly | Every wage period |
| Licence renewal | As per licence term | Before expiry |
If a contractor fails to pay wages or dues, the principal employer can be required to pay and recover from the contractor.
Engaging contractors without valid licences attracts penalties.
Poorly structured arrangements can lead to claims that contract workers are direct employees.
We study your entities, locations, headcount and existing records to map every obligation that applies.
A location-wise compliance calendar and responsibility matrix, agreed with your team.
Registrations, registers, returns and filings handled on time, every time, reviewed by a professional.
Regular status reports and an evidence file ready for auditors, inspectors and management.
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Fees depend on your entities, locations and headcount. Share your requirement for a tailored proposal.
Request pricingUnder the OSH Code, 2020, contract labour provisions apply where 50 or more contract workers are engaged (up from 20 under the CLRA Act, 1970). Until your state notifies its rules, legacy forms and procedures often continue to be used.
Yes. If a contractor fails to pay wages or statutory dues, the principal employer can be required to pay them and recover from the contractor.
Yes, see our Vendor Audit service, which checks each contractor's wages, PF, ESI and records.
The owner or occupier of the establishment where contract labour is engaged, typically the company that hires the contractor.
The OSH Code restricts contract labour in core activities, with specified exceptions. We review your arrangements against the rules.
Registers of workmen, wages, deductions, overtime and advances, wage slips and attendance, as prescribed by the state rules.
End-to-end compliance with central and state labour laws for every establishment and factory you operate.
Learn moreAccurate, on-time statutory deductions and filings for PF, ESI, Professional Tax and Labour Welfare Fund.
Learn morePeriodic audits of contractors and vendors to protect you from principal-employer liability.
Learn moreA dedicated helpdesk that answers your employees' PF, ESI, gratuity and claim questions.
Learn moreTell us about your organisation and a Paalan professional will send you a clear, tailored proposal, usually within one working day.