What is Contract Labour?
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.
Related
See OSH Code and fixed-term employment.
Related terms and guides
Sources
- The Occupational Safety, Health and Working Conditions Code, 2020, https://www.labour.gov.in/static/uploads/2025/07/36fcfa5d8e6b9145e282bf7b950d6c47.pdf, live official page, linked for readers; link checked 2026-10-31
- Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes, https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf, live official page, linked for readers; link checked 2026-10-31
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.