- 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.