What is Principal Employer Registration?
Principal Employer Registration is the registration of an establishment which engages contract labour through a contractor.
It is one of the most essential labour law registrations required where contract workers are engaged in or in connection with the work of an establishment.
The registration records the establishment details, maximum number of contract workmen proposed to be employed, nature of business, work carried out through contract labour and other particulars required under the Act.
Which law governs Principal Employer Registration?
Principal Employer Registration is governed under the Contract Labour (Regulation and Abolition) Act, 1970.
The Act applies to establishments and contractors engaging contract labour, subject to the applicable worker threshold and State-specific amendments.
| Particulars | Details |
| Name of law | Contract Labour (Regulation and Abolition) Act, 1970 |
| Nature of compliance | Registration of Principal Employer's Establishment |
| Authority | Labour Department |
| Portal | LMS / MAITRI / Single Desk Portal |
| Stage | Pre-operation / Renewal |
| Certificate | Certificate of Registration |
| Mode of filing | Online |
| Processing timeline | 20 days, as per service note |
Who is a Principal Employer?
Principal Employer means the person responsible for supervision and control of the establishment.
In relation to a factory, it generally refers to the owner or occupier of the factory and includes the person named as manager under the Factories Act, wherever applicable.
In relation to any other establishment, it refers to the person responsible for supervision and control of the establishment.
| Type of Establishment | Principal Employer |
| Factory | Owner / Occupier / Factory Manager |
| Government office or local authority | Head of office or specified officer |
| Mine | Owner / Agent / Manager |
| Other establishment | Person responsible for supervision and control |
What is Contract Labour & Contractor?
A workman is treated as contract labour when he is hired in or in connection with the work of an establishment by or through a contractor, with or without the knowledge of the principal employer.
Contract labour may be engaged for activities such as housekeeping, security, loading and unloading, maintenance, packaging, support services, project work, operational work and other business-related activities.
Contractor means a person who undertakes to produce a given result for the establishment through contract labour or supplies contract labour for any work of the establishment.
It also includes a sub-contractor.
Applicability of Principal Employer Registration
Principal Employer Registration is applicable to establishments where contract labour is employed or proposed to be employed, subject to the applicable threshold.
For Maharashtra service process, the applicability is generally considered where the establishment of the Principal Employer employs fifty or more workmen, or has employed fifty or more workmen during any day in the preceding twelve months as contract labour.
| Particulars | Details |
| Applicable to | Principal Employer's establishment |
| Worker category | Contract labour |
| Maharashtra service criterion | 50 or more contract workmen |
| Period to check | Any day in preceding 12 months |
| Stage | Pre-operation / Renewal |
| Competent authority | Labour Department |
Why Principal Employer Registration is required?
Principal Employer Registration is required because the principal employer cannot engage contract labour in an establishment covered under the Act unless the establishment is registered.
It gives legal recognition to the establishment for engaging contract labour through contractors.
It also helps the Labour Department monitor contract labour deployment, number of workmen, nature of work, welfare facilities, wage responsibility and statutory compliance.
Availability of Principal Employer Registration: Timeline and Process
| Particulars | Details |
| Mode of application | Online |
| Portal | LMS / MAITRI / Single Desk Portal |
| Service | Registration of Principal Employer |
| Payment | Online payment |
| Status after payment | Under Scrutiny |
| Processing | Scrutiny by authority |
| Approval | Digitally signed certificate |
| Delivery | Download from login and email delivery |
| Timeline | 20 days, as per service note |
After submission and payment, the application status changes to “Under Scrutiny”. This means that the application is on the desk of the concerned authority for scrutiny.
If approved, the Download Certificate button becomes active under the applicant’s login and the Registration Certificate is also sent to the applicant by email.
Structure of Principal Employer Registration Application
The application generally contains details of the establishment, principal employer, contract labour and documents.
Part A - Establishment and Principal Employer Details
| Establishment Details | Principal Employer Details |
| Name of establishment | Name of principal employer |
| Address of establishment | Applicant details |
| Nature of business | Proof of identity |
| Type of work | Photo |
| Location details | Signature |
| Maximum number of contract labour | Self-declaration |
This part records the identity of the establishment and the person responsible for supervision and control.
Part B - Contract Labour Details
| Particulars | Details |
| Number of contract workmen | Maximum number proposed to be employed |
| Nature of work | Work for which contract labour is engaged |
| Contractor details | Details may be required depending on application |
| Previous registration | Required in case of old user |
| Previous fee receipt | Required in case of old user |
This part helps the authority understand the extent and nature of contract labour engagement.
Part C - Declaration, Documents and Fees
This part contains the self-declaration, self-attestation, uploaded documents and fee payment.
The applicant is required to upload the documents in the prescribed size and format and make the required payment through the online payment gateway.
Documents required for Principal Employer Registration
The following documents are generally required for Registration of Principal Employer’s Establishment.
- Annexure A self-declaration.
- Annexure B self-declaration for attestation.
- Photo of applicant.
- Signature of applicant.
- Proof of Identity of applicant.
- Copy of Driving Licence, Passport, Aadhaar Card or PAN Card, as applicable.
- Copy of Previous Registration Certificate or Licence, in case of old user.
- Copy of fee receipt paid earlier, in case of old user.
Fees for Principal Employer Registration
The fees payable for the grant of Certificate of Registration depends on the number of workmen proposed to be employed on contract on any day.
| Number of Workmen | Registration Fee |
| 20 workmen | ₹60 |
| Exceeds 20 but does not exceed 50 | ₹150 |
| Exceeds 50 but does not exceed 100 | ₹300 |
| Exceeds 100 but does not exceed 200 | ₹600 |
| Exceeds 200 but does not exceed 400 | ₹1,200 |
| Exceeds 400 | ₹1,500 |
Contractor Licence Fee and Security Deposit
Where the contractor licence process is applicable, the service note provides the following licence fee and security fee details.
| Number of Workmen | Registration Fee |
| 20 workmen | ₹60 |
| Exceeds 20 but does not exceed 50 | ₹150 |
| Exceeds 50 but does not exceed 100 | ₹300 |
| Exceeds 100 but does not exceed 200 | ₹600 |
| Exceeds 200 but does not exceed 400 | ₹1,200 |
| Exceeds 400 | ₹1,500 |
Process of filing Principal Employer Registration
Step 1 - Login on Portal
The user is required to login on the LMS / MAITRI / Single Desk Portal. The user has to create username and password before accessing the online services.
Step 2 - Select Service
After login, the dashboard of services available online becomes visible. The user has to select the service for Registration of Principal Employer. After selecting the service, the concerned application form becomes visible to the user.
Step 3 - Fill Application and Upload Documents
The user has to fill the online application form with the required details. After filling the form, the user has to upload the required documents as per checklist. The documents should be uploaded in the prescribed size and format.
Step 4 - Make Online Payment
After uploading the documents, the user has to make payment through the online payment gateway. After successful payment, the user receives a message that the application has been successfully submitted. The applicant also gets the application ID.
Step 5 - Scrutiny and Certificate
Download After payment, the application status changes to “Under Scrutiny”. The authority processes the application and either approves or rejects the application. In case of approval, the Download Certificate button becomes active under the applicant’s login. The Registration Certificate is also emailed to the applicant on the registered email address.
Principal Employer Duties and Compliance Requirements
Responsibilities of Principal Employer
The principal employer is responsible for ensuring that contract labour is engaged in accordance with the provisions of the Contract Labour Act.
The principal employer should ensure that contractors engaged by the establishment hold valid licence wherever applicable.
The principal employer should ensure that required welfare facilities, wage compliance, records and statutory registers are maintained.
If the contractor fails to provide certain amenities or fails to make payment of wages, the principal employer may have responsibility under the Act, subject to the applicable provisions.
Welfare and Compliance Requirements
The Act provides for welfare and health requirements for contract labour.
The contractor is generally responsible for providing canteen, rest-room, drinking water, latrines, urinals, washing facilities and first-aid facilities, wherever applicable.
If the contractor fails to provide prescribed amenities within the prescribed time, the principal employer may be required to provide such amenities and recover the expenses from the contractor.
Wage Responsibility
The contractor is responsible for payment of wages to each worker employed by him as contract labour.
The principal employer is required to nominate an authorised representative to be present at the time of wage disbursement by the contractor.
If the contractor fails to make payment of wages within the prescribed period or makes short payment, the principal employer may be liable to make payment of wages in full or unpaid balance and recover the amount from the contractor.
Registers and Records
Every principal employer and contractor is required to maintain registers and records relating to contract labour.
The records should contain particulars of contract labour employed, nature of work performed, rates of wages paid and such other particulars as may be prescribed.
Notices relating to hours of work, nature of duty and other prescribed details should also be displayed, wherever applicable.
Penalties
Contravention of the provisions regulating employment of contract labour may attract imprisonment, fine or both, as provided under the Act.
Obstruction of inspector or refusal to produce register or document may also attract penalty.
Continuing contravention may attract additional fine for every day during which such contravention continues after conviction.
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