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What is Contract Labour?

LiveRec EditorialUpdated

Contract labour is workers engaged through a contractor to do work for a principal employer, rather than being employed directly. Under the OSH Code the provisions apply where 50 or more contract workers are employed, the contractor needs a licence valid for five years, and the principal employer must provide welfare facilities and pay wages if the contractor fails to.

Example

A factory uses a staffing contractor for 80 workers. The contractor holds the licence; the factory, as principal employer, ensures welfare facilities and steps in if wages are not paid.

See OSH Code and fixed-term employment.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.