Contract labour under the OSH Code

Contractors employing 50 or more workers need a licence. Principal employers ensure wages and welfare, and contract labour in core activities is restricted.

  • Applicability: a contractor employing 50 or more contract workers, and the principal employer engaging them.
  • Licence: one licence for the contractor, for work in one or more States, valid for five years.
  • Core activities: contract labour is prohibited in core activities, except where the normal functioning is such that the work is ordinarily done through contractors, or the activity is not full-time, or there is a sudden increase in work.
  • Principal employer's duties:
    • provide welfare facilities if the contractor fails;
    • ensure wages are paid in the presence of the authorised representative;
    • pay the wages if the contractor does not, and recover them from the contractor.
  • Records: a register of contractors and contract workers. Wage slips and the work order are kept at the site.
  • Equal wages: contract workers doing the same or similar work get the same wages as regular workers.

The HR desk's Contractors module keeps the contractor list and a monthly check.

Last reviewed 17-10-2026. General information, not legal advice for a specific case. Check the latest Act, Rules and notifications of the appropriate government before acting.

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