When the contract labour rules apply, the contractor's licence, who pays if the contractor does not, core activities, and migrant workers.
Written from the official text · not reviewed by a lawyer · follows the Central Rules
Key points
The contract labour Part of the OSH Code applies to every establishment in which fifty or more contract labour were employed on any day of the preceding twelve months, and to every manpower supply contractor who employed fifty or more s. 45(1).
A contractor covered by the Part may not supply or engage contract labour without a licence s. 47(1); a licence is valid for five years for the number of contract labour it states s. 48(3).
The contractor may not charge the contract labour any fee or commission, directly or indirectly s. 49.
The contractor pays the wages, through bank transfer or electronically s. 55(1)–(2). If the contractor does not pay, or pays short, the principal employer must pay the wages in full or the unpaid balance, and recover it from the contractor s. 55(3).
The principal employer provides the Code’s welfare facilities to the contract labour employed in the establishment s. 53.
Employing contract labour in the core activities of an establishment is prohibited, except in the cases the Code lists s. 57(1).
The inter-State migrant workers Part applies to every establishment in which ten or more inter-State migrant workers were employed on any day of the preceding twelve months s. 59.
An inter-State migrant worker is recruited in one State for work in another, or comes from one State and finds work in another, and draws wages of not more than eighteen thousand rupees a month or the higher amount the Central Government notifies s. 2(1)(zf).
Once a year the employer pays each inter-State migrant worker a lump sum fare for the journey to their native place and back s. 61.
If you are an employer
Use only licensed contractors, and check that contract labour are paid: if they are not, the wages fall on you s. 55(3).
If you are a worker
If your contractor does not pay you, the principal employer of the establishment where you work is liable for your wages s. 55(3).
7 questions. Choose an answer, then open “Show the answer” to check it against the law's own words.
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Answer: Fifty or more
The Part applies to every establishment in which fifty or more contract labour were employed on any day of the preceding twelve months s. 45(1)(i).
every establishment in which fifty or more contract labour are employed or were employed on any day of the preceding twelve months through contract
The law's words: OSH Code, s. 45 — Applicability of this Part
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Answer: Five years
A licence is valid for five years for the number of contract labour it states s. 48(3).
shall be valid for a period of five years in respect of the number of contract labour specified therein
The law's words: OSH Code, s. 48 — Procedure for issue or renewal of licence
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Answer: No: not directly or indirectly, in whole or in part
The contractor may not charge any fee or commission from the contract labour, directly or indirectly s. 49.
The contractor shall not charge directly or indirectly, in whole or in part, any fee or commission from the contract labour.
The law's words: OSH Code, s. 49 — No fees or commission or any cost to workers
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Answer: The principal employer, who then recovers the amount from the contractor
If the contractor fails to pay or pays short, the principal employer must pay the wages in full or the unpaid balance, and recover it from the contractor s. 55(3).
then, the principal employer shall be liable to make payment of the wages in full or the unpaid balance due, as the case may be, to the concerned contract labour employed by the contractor
The law's words: OSH Code, s. 55 — Responsibility for payment of wages
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Answer: In the core activities of the establishment
Employing contract labour in the core activities of any establishment is prohibited s. 57(1).
employment of contract labour in core activities of any establishment is prohibited
The law's words: OSH Code, s. 57 — Prohibition of employment of contract labour
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Answer: Ten or more
The Part applies to every establishment in which ten or more inter-State migrant workers were employed on any day of the preceding twelve months s. 59.
This Part shall apply to every establishment in which ten or more inter-State migrant workers are employed or were employed on any day of the preceding twelve months.
Answer: A lump sum fare for a to and fro journey to their native place
The employer pays every inter-State migrant worker, in a year, a lump sum amount of fare for a journey to their native place and back s. 61.
The employer shall pay, to every inter-State migrant worker employed in his establishment, in a year a lump sum amount of fare for to and fro journey to his native place from the place of his employment
Contract labour— Licences for contractors, wages and facilities for contract labour, and where contract labour is not allowed under the OSH Code, 2020.
Official text reproduced from the Gazette of India, India Code and State Government sources. This is not legal advice; check the source PDF before relying on any provision.