Contractual Labour Regulation & Abolition ActPromotional
Contract labour compliance under the OSH Code — establishment registration, contractor licences, registers, core-activity limits and audits.
- Estimate Cost
- ₹10,000 – ₹75,000 Concessional Price
- Typical duration
- 15 days
Service overview
Contract labour is now regulated by the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, which replaced the Contract Labour (Regulation and Abolition) Act, 1970 from 21 November 2025.
WCP professionals help principal employers and contractors register, license, document and audit their contract workforce, so that deployment is lawful and claims of direct employment or sham contracting can be defended.
Who needs it? / When is it needed?
- Principal employers engaging 50 or more contract workers through contractors
- Manpower contractors employing 50 or more contract workers who need a licence, renewal or amendment
- Businesses facing an inspection, notice or claim by contract workers for regularisation
- Companies restructuring outsourced work to comply with the core-activity rules
What to expect from the WCP Professionals
- Applicability check: the OSH Code's contract-labour provisions apply to establishments engaging, and contractors employing, 50 or more contract workers
- Review of contractor headcount, nature of work and existing registrations and licences
- Identification of core activities where contract labour is prohibited, and of permitted exceptions
- Audit of contracts and site practices for sham-contracting indicators such as direct supervision or direct wage payment
- Registration of the establishment and contractor licensing on the Shram Suvidha / State portal
- Registers, returns and wage-payment checks, and representation in inspections and notices
Key deliverables
- Establishment registration under the OSH Code (principal employer)
- Contractor licence under the OSH Code
- Contract labour compliance audit and risk report
- Revised contractor agreements and site-practice recommendations
- Registers, notices and return formats
Standard turnaround time
- Audit & Legal Advisory: 3 to 5 working days.
- Registration & License Filing: 7 to 14 working days (subject to department processing).
- Notice Response & Hearing Representation: Immediate action within statutory notice limits (typically 7–15 days).
Government fees, timelines & key outcomes
Registration and licence fees are prescribed under the OSH Code rules of the Centre or the State, and generally depend on the number of contract workers.
Key outcomes: lawful deployment of contract labour, valid registrations and licences, and defensible documentation against absorption claims.
Forms & filings involved
- Single registration of the establishment under the OSH Code
- Contractor licence under the OSH Code, including work-specific or all-India licences where available
- Notices of commencement and completion of contract work
- Registers and annual returns as prescribed by the OSH Code rules
Forms are notified under the Central or State OSH rules; the State where the establishment operates is confirmed first.
Documents required
- Certificate of Incorporation
- Business Registration.
- Memorandum & Articles of Association (MOA/AOA) or Partnership Deed.
- Copy of Master Service Agreement
- Purchase Order with Contractor.
- Details of Premises, Work Description, and Exact Headcount.
- Identity & Address Proof of Authorized Signatories
- Directors.
- Treasury Challan for statutory fee payment.
What we need from you
- Full visibility into existing contractor arrangements and headcount records.
- Timely execution of statutory applications and authorization letters.
- Access to premises for on-site compliance verification by the legal team.
Important conditions
The principal employer remains liable for contract workers' wages and certain welfare obligations if the contractor defaults.
Engaging contract labour in prohibited core activities, or without a valid licence, can lead to the workers being treated as direct employees and to penalties under the OSH Code.
Additional information
Matters relating to the period before 21 November 2025 may still be assessed under the repealed Contract Labour (Regulation and Abolition) Act, 1970.
States are notifying their own OSH rules, and thresholds and forms can differ between the Centre and the States.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
Has the Contract Labour Act been replaced?
Yes. From 21 November 2025, contract labour is regulated by the Occupational Safety, Health and Working Conditions Code, 2020.
When do contract-labour provisions apply?
To establishments engaging, and contractors employing, 50 or more contract workers under the OSH Code.
Is contract labour allowed in core activities?
Generally no — the OSH Code prohibits contract labour in core activities, with specified exceptions.
Is the principal employer liable for contractor defaults?
Yes. If the contractor fails to pay wages or meet certain obligations, the principal employer must pay and can recover from the contractor.