If your company in Tamil Nadu engages 20 or more contract workers (central threshold is 20+ workers), you are legally required to register under the Contract Labour (Regulation & Abolition) Act (CLRA) and obtain the appropriate license.
👉 Principal Employers (the hiring company) and Contractors (labour supply agencies) must both register separately.
Failure to register exposes Chennai businesses to:
- Fines & penalties under the CLRA
- Surprise inspections by labour officers
- Suspension of ongoing projects due to compliance failures
- Reputational damage with clients & authorities
📌 In 2025, compliance is more digital than ever. Most filings are now through labour.tn.gov.in or Shram Suvidha portal.
We assist Chennai establishments — IT parks, factories, construction firms, hospitality chains — to register, prepare for inspections, and stay audit-ready year-round.
- Principal Employer (the company engaging labour contractors) → Must register if contract staff meet threshold
- Contractor (the agency providing workers) → Must apply separately for license.
- State Rule (Tamil Nadu): 20+ contract workers → TN state licence required.
- Central Rule: 20+ workers across projects → Central registration via Shram Suvidha.
📌 Example:
- Tamilnadu-based construction firm (BOCW) employing 10+ contract employees must obtain a state CLRA license.
- A software export house hiring 25 contract security staff across multiple states must obtain a central registration under Shram Suvidha.
For Principal Employers (Form I)
- Form I (application for registration)
- Establishment certificate (Shops & Establishments / Factories Act
- Copy of contract agreement or work order
- Contractor details + number of workers engaged
- PF/ESI registration details (if applicable
- Last 3 months’ wage & attendance register
- Proof of government fee payment (challan)
For Contractors (Form IV)
- Form IV (application by contractor)
- Establishment/agency registration proof
- Copy of contract with principal employer
- Worker list with IDs and wage details
- PF/ESI registration numbers
💡 Tip: Keep scanned PDFs of contracts, wage registers, and ESI/PF challans handy. Labour inspectors often check these first during audits.
📥 Download Free 2025 CLRA Checklist — included with all packages.
State-Level Application (labour.tn.gov.in)
For Principal Employers (Form I)
- Register/login on TN labour portal.
- Fill Form I (principal employer) or Form IV (contractor)
- Upload documents & worker list (Excel/CSV template).
- Pay government fee online.
- Department verifies → may request site inspection.
- Download license certificate → keep digital & physical copies ready.
Central Registration (Shram Suvidha)
- Register at Shram Suvidha portal.
- Select “Contract Labour (Regulation & Abolition)” option.
- Fill establishment details, upload agreements & worker data
- Pay central fees online.
- Track application until license approval.
👉 We handle end-to-end filing for employers preferring a hands-off process.
Labour inspectors often conduct surprise visits. To pass without issues, prepare:
- Updated wage register & overtime calculations
- Attendance sheet + contractor deployment details
- Proof of timely wage payments (bank transfers preferred)
- Safety provisions (first aid, drinking water, rest areas
- Compliance officer name & contact details
- Welfare measures promised in contracts
💡 We run a mock inspection for Chennai clients before official visits, ensuring all gaps are fixed in advance.
- Initial penalties: ₹1,000 per breach (as per CLRA enforcement circulars).
- Serious/repeated violations: Higher fines + possible cancellation of license.
- Missed registration/renewal: Treated as illegal employment.
👉 The simplest way to avoid penalties is timely registration, correct worker records, and annual renewals.
📌 Case reference: In 2024, a Chennai-based logistics hub was fined ₹1.2 lakh for failing to renew its CLRA license on time.
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Workforce Size
|
Service Fee (One-Time)
|
Includes
|
|---|---|---|
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Up to 100 workers
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₹7,999
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Application filing, document prep, Form I/IV submission
|
|
101–300 workers
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₹14,999
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Filing + mock inspection + registers setup
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300+ workers
|
Custom
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Dedicated CA/CS team + on-site audit + legal representation
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✅ Government processing fees extra (depend on worker count).
✅ Annual renewal & compliance support also available.
✅ Free PDF Checklist with every package.
✔ 15+ years of experience with Tamil Nadu labour authorities
✔ Multidisciplinary team → labour lawyers + CA/CS + HR compliance experts
✔ Fast turnaround → filings within agreed SLAs
✔ Penalty-support promise – if penalty arises due to our error, we assist & cover consultancy for appeal
✔ Multi-channel support → phone, email, WhatsApp, live status tracking
✔ 500+ Chennai businesses trust us with CLRA license compliance
📍 Construction Firm, Tambaram
- Registered 2 contractors, passed inspection in 10 days, avoided stoppage.
📍 IT Services Vendor, OMR
- Migrated to digital registers, reduced audit time by 70%.
📍 Manufacturing Plant, Ambattur
- Fixed discrepancies in wage records, renewed license with zero observations.
- Start registration before hiring 20+ workers (TN) or 20+ (central).
- Ensure contractors are also registered → liability stays with principal employer
- Maintain bank transfer proof of wage payments
- Keep attendance registers updated daily.
- Train HR/compliance officers on Shram Suvidha filings
- Schedule annual audits to avoid renewal issues.
💡 Pro Tip: Even if you hire multiple small contractors, the combined number of workers counts for threshold compliance.
❓ FAQs – CLRA License in Chennai (2025)
A: Use Shram Suvidha for central registration; labour.tn.gov.in for Tamil Nadu state licenses.
A: Typically 7–30 working days, depending on inspection timelines.
A: Form I (principal employers), Form IV (contractors). Form V may be required periodically.
A: Yes. Legal responsibility always lies with the principal employer.
A: Minimum fine ₹1,000 per breach; higher for repeated non-compliance.
A: Yes. Both are independently liable.
The Contract Labour (Regulation & Abolition) Act is no longer just a paper-driven process. With Shram Suvidha integration and Tamil Nadu’s labour.tn.gov.in portal, compliance has gone 100% digital.
For Chennai employers, this means:
- Staying compliant to avoid penalties & project delays
- Building trust with clients, contractors, and government bodie
- Being audit-ready for any surprise inspection
- Aligning HR practices with national compliance frameworks
📌 In 2025, ignoring CLRA registration is riskier than ever. Chennai businesses hiring contract staff must act early, maintain transparent records, and use digital systems to ensure smooth operations.
📞 Ready to Get Started?
Call us today: +91 77088 97423 or Email: support@crediblecs.com