Contract Labour Eligibility
Check applicability of the Contract Labour (R&A) Act, 1970.
The Contract Labour Eligibility checker assesses whether the Contract Labour (Regulation and Abolition) Act, 1970, now subsumed by the OSH Code, 2020, applies to your establishment. It indicates whether the principal employer must register or the contractor must obtain a licence. It is for businesses engaging contractors and for labour contractors.
Use the Contract Labour Eligibility
Applicability & Compliance
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Check applicability and compliance obligations under the Contract Labour (Regulation & Abolition) Act, 1970 (subsumed by the OSH Code, 2020 effective 21 November 2025). Determines whether your principal employer / contractor must register / obtain licence.
Contract Labour - key provisions:
- Applicability threshold (Section 45, OSH Code 2020): 50 or more contract workers on any day in the preceding 12 months in the establishment / employed by the contractor (was 20+ under the 1970 Act). Not applicable where work is only intermittent or casual (120 days or less in the preceding 12 months, or 60 days for seasonal work).
- Principal Employer (PE) duties: Register the establishment under Section 3 of the OSH Code (online, Shram Suvidha / state portal); pay wages if the contractor defaults (and recover them); ensure canteens, restrooms, first aid, drinking water and washing facilities.
- Contractor duties: Obtain licence under Section 47 (valid for 5 years); maintain register of workers; issue employment cards; pay wages by the 7th of the next month (monthly wage period) in presence of the PE-authorised representative.
- Prohibition on core activities (Section 57): Contract labour cannot be engaged in core activities of an establishment, except where the activity is ordinarily done through contractors in that kind of establishment, is not full-time work, or involves a sudden increase in work volume. The appropriate Government can designate an authority to decide whether an activity is core.
- Wages & conditions: Contract workers entitled to wages, hours, leave, social security at par with directly-employed workers of similar nature.
- Inter-State Migrant Workers: Now covered by the OSH Code; the provisions apply to establishments employing 10 or more inter-state migrant workers (up from 5 under the 1979 Act).
- Penalty: Contraventions are punishable with fines under Chapter XIV of the OSH Code; the amount depends on the provision breached.
Common compliance triggers:
Even below the 50-worker threshold, the OSH Code's registration and welfare provisions (establishments with 10+ workers), state rules and the inter-state migrant worker provisions (10+ such workers) may apply. Engagement of any contract labour at all triggers obligations on minimum wages, PF / ESI coverage (if the contractor is itself a covered establishment), payment of wages timing, and provision of basic welfare amenities.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.
Frequently Asked Questions
When is contract labour registration or licence required?
Under the OSH Code, 2020, effective 21 November 2025, contract labour provisions apply to establishments and contractors employing 50 or more contract workers on any day in the preceding 12 months, up from 20 under the 1970 Act, unless the work is only intermittent or casual. The principal employer must register the establishment, and the contractor must obtain a licence valid for 5 years. State rules and other provisions may still apply below this threshold.
What are the principal employer's responsibilities for contract workers?
The principal employer must register the establishment, engage only licensed contractors, maintain a register of contractors, and ensure welfare facilities such as canteens, restrooms, first aid and drinking water are provided. If the contractor fails to pay wages, the principal employer must pay them and can recover the amount from the contractor.
How does the contract labour checker work?
Choose whether you are the principal employer or the contractor, enter the number of contract workers, and select the type of activity and the duration of engagement. If the work is a core activity, the tool flags the Section 57 prohibition. If the work lasts less than 120 days a year, it notes that the contract labour chapter may not apply to intermittent work. Otherwise it checks whether you meet the 50-worker threshold and lists the registration, licence and ongoing obligations that apply.
Due in the next 30 days
Labour- ESI Half-yearly Return of Contributions (Apr–Sep 2026)
- PF deposit (ECR + challan) for October
- ESI contribution for October
Full compliance calendar → Statutory dates, which can be extended by notification. General information only.