Section – 47. Licensing of contractors.
(1) No contractor to whom this Part applies shall—
(a) supply or engage contract labour in any establishment; or
(b) undertake or execute any work through contract labour,
except under and in accordance with a licence issued by the authority referred to in sub-section (1) of section 119. Such licence shall be granted only after verifying that the contractor fulfils the prescribed qualifications or criteria, and shall specify the number of contract labour permitted and the amount of security to be deposited, along with other required particulars and conditions.
(2) Where the contractor does not fulfil the prescribed qualifications or criteria, the authority may issue a “work-specific licence” in electronic form, renewable within the prescribed period. Such licence shall permit engagement of contract labour only for the specific work order mentioned therein and subject to specified conditions.
(3) Subject to the provisions of this Part—
(a) a licence under sub-section (1) may include conditions relating to working hours, wages and essential amenities for contract labour, as prescribed by the appropriate Government;
(b) such licence shall be obtained from—
(i) the authority designated by the Central Government, where it is the appropriate Government; or
(ii) the authority designated by the State Government, where it is the appropriate Government:
Provided that where a contractor intends to operate in more than one State or across India, he may obtain a licence from the authority designated by the Central Government, and the relevant provisions shall apply:
Provided further that before issuing such licence, the Central authority shall consult the concerned State authorities electronically in cases where the appropriate Government is the State Government.