Contract Labour Eligibility

Contract Labour - key provisions:

• Applicability threshold (OSH Code 2020): 50 or more contract workers in the establishment / engaged by the contractor (was 20+ under the 1970 Act).
• Principal Employer (PE) duties: Register under Section 7 of OSH Code (Form I); pay PE wages if contractor defaults; provide canteens, restrooms, first aid, drinking water, washing facilities.
• Contractor duties: Obtain licence under Section 47 (now 5-year validity); maintain register of workers; issue employment cards; pay wages by 7th of next month in presence of PE-authorised representative.
• Prohibition on core activities: OSH Code allows central / state government to prohibit contract labour in core activities of establishments (sector-specific notifications expected).
• Wages & conditions: Contract workers entitled to wages, hours, leave, social security at par with directly-employed workers of similar nature.
• Inter-State Migrant Workmen: Now consolidated into OSH Code; threshold reduced to 10+ migrant workers.
• Penalty: Engaging contract labour without registration / licence - up to Rs 1 lakh on PE / contractor + Rs 1,000/day continuing default.

Common compliance triggers: Even below the 50-worker threshold, several state rules and the Inter-State Migrant Workmen provisions 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.