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We handle the complexities of Contract Labour Law — so you don't have to.
If you are looking for a trusted Contract Labour License Consultant in Delhi, Labour Law Wale is here to help. We have been working in labour law compliance for over 10 years, and in that time we have understood one thing clearly — most businesses don’t need someone to just file a form. They need someone who actually understands their situation and tells them what to do next.
At Labour Law Wale, that is exactly what we do. Before we touch any paperwork, we first understand your business — how many workers you engage, where they are deployed, what kind of work they do, and whether your current setup is aligned with what the OSH Code 2020 requires. Only then do we advise you on what applies to you specifically.
Our support does not stop at licence application. We help with worker deployment records, security deposit calculations, welfare facility compliance, Shram Suvidha Portal filings, and annual return submissions. If the labour department sends a notice or an inspection comes up, Labour Law Wale is there to guide you through it — step by step, without confusion.
Many employers search for a Labour License Consultant Near Me only after receiving a departmental notice. By that point, the pressure is already on. We always recommend coming to us earlier — when there is still time to set things right without penalties or unnecessary complications.
Whether you are a contractor engaging workers at multiple sites or a principal employer verifying your contractor’s compliance, Labour Law Wale gives you clear answers, correct documentation, and ongoing support — so that contract labour compliance never becomes a last-minute problem for your business
Changes in Contract Labour Law As per New Labour Codes
The four Labour Codes came into force on 21 November 2025, repealing the Contract Labour (Regulation and Abolition) Act, 1970. Its provisions now sit in Chapter XI of the Occupational Safety, Health and Working Conditions (OSH) Code, 2020. The OSH Code Central Rules, 2026, notified on 8 May 2026, operationalise the new registration and licensing procedure. The licence threshold is now 50 workers — raised from 20. A single pan-India licence is now valid for 5 years, covering all work sites.
Understanding osh code
What Is Contract Labour Licence Under OSH & WC Code?
The Occupational Safety, Health and Working Conditions (OSH & WC) Code, 2020 is the central law that now governs contract labour across India. It replaced the Contract Labour (Regulation and Abolition) Act, 1970, which stood repealed on 21 November 2025. The OSH Code Central Rules, 2026, notified on 8 May 2026, brought the new licensing framework into full operation.
Under this Code, a Contract Labour Licence is a legal authorisation that every qualifying contractor must obtain before deploying workers at any establishment. It is issued under Section 45 of the OSH Code and confirms that the contractor has registered their details, worker count, nature of work, and security deposit with the government.
The licence becomes mandatory when a contractor has engaged 50 or more contract workers on any day during the preceding 12 months. This threshold is now the same across every state in India. Earlier, under the CLRA Act, the number was 20 and varied by state — that inconsistency no longer exists under the OSH Code.
The licence is applied through Form XXI on the Shram Suvidha Portal — entirely online. At the time of application, a security deposit of ₹1,000 per contract worker is required under Rule 90 of the OSH Code Central Rules, 2026. Once the application is complete, a deemed licence is generated within 7 working days.
The licence, once granted, is valid for 5 years and covers multiple work sites across India under a single document — replacing the old system where contractors needed separate licences for each establishment or state.
Every licence comes with conditions under Rule 86 — including limits on worker deployment, wage payment timelines, welfare facility obligations, and the mandatory issue of an Experience Certificate to every worker on completion of their engagement under Section 56 of the OSH Code.
50+
Contract workers – licence applicability threshold
5 Years
Validity of Contract Labour Licence
Employer Contribution
₹1,000
Security requirement per contract worker, as prescribed
₹21,000
monthly wage ceiling for ESI coverage
Did You Know?
Under OSH Code 2020, a single pan-India contractor licence covers multiple work sites across all states — replacing the old system of separate licences per establishment
Who must register?
The threshold is now a uniform 50 or more contract workers on any day in the preceding 12 months across India, under Section 45 of the OSH Code, 2020.
Both the principal employer and the contractor have separate, independent registration and licensing obligations that must each be fulfilled — neither can delegate their responsibility to the other. If the contractor does not hold a valid licence, the principal employer becomes directly liable under the law.
Licence validity and process
Before the Labour Licence is issued, the contractor is required to provide the prescribed security for compliance with the licence conditions. Under the OSH Code Central Rules, the security is calculated at ₹1,000 for each contract worker for whom the licence is being applied. The security may be provided through the prescribed Bank Guarantee process.
The contractor first submits the Labour Licence application online through the Shram Suvidha Portal in Form XXI. After completing the application, the prescribed security requirement needs to be fulfilled before the licence is issued. The security details and transaction information form part of the licence application process
Who Needs to Check Applicability
If your establishment engages fewer than 50 contract workers, you are not mandatorily covered — but you should still verify whether any of your contract arrangements fall under the OSH Code’s definition of contract labour.
If you are a contractor with existing CLRA registrations or licences, those are no longer valid under the new framework. You must migrate to the OSH Code system through the Shram Suvidha Portal. The same compliance obligations — worker welfare, timely wages, experience certificates, and annual returns — continue to apply under the new law.
Contract Labour Licence Depends On the Jurisdiction of Your Establishment
Most contractors assume the licence process is the same everywhere. It is not. Where you apply, how you apply, and which authority handles your case — all of this depends on whether your establishment falls under the Central Government or the State Government. Getting this wrong from the start creates delays that are completely avoidable.
For Contractors Applying Through Shram Suvidha Portal
For contractors covered under the Central Government licensing framework, the licence application is submitted online through the Shram Suvidha Portal of the Ministry of Labour and Employment. The application is made in Form XXI and includes details of the contractor, principal employer, work location, nature of contract work, and the number of contract workers to be deployed.
One important provision under the OSH Code Central Rules, 2026 is that a contractor can apply for a single pan-India licence if they are working across more than one state or at multiple locations across India. This single licence, once granted, covers all those work sites without requiring separate applications for each location. This application is also submitted electronically through the Shram Suvidha Portal.
This route is particularly relevant for contractors and manpower supply companies operating across multiple states — it removes the burden of maintaining separate licences for each establishment or state, which was required under the old CLRA framework.
The security deposit under this route is ₹1,000 per contract worker, as prescribed under Rule 90 of the OSH Code Central Rules, 2026. Once submitted, a deemed licence is generated within 7 working days from the date of application.
- Shram Suvidha Portal
- Railways
- Major Ports, Airports
- Mines (Coal, oil, gas mines
- ONGC, BHEL, SAIL jaise Central PSUs
- Oilfields aur refineries
- Central Government ke offices aur departments
For Contractors Under State Government Licensing Authority
Where the State Government is the appropriate Government, the applicable State authority handles the contractor licensing process. The exact authority, filing requirements, documents needed, and the procedure followed can vary depending on the type of establishment, the nature of work being carried out, and the location of operations.
For a contractor working only within one state, it is important to first verify whether the establishment and the contract work fall under the State Government’s jurisdiction. If they do, the contractor must follow the prescribed State-level process — which may include state-specific forms, documents, and compliance requirements that differ from the Central process.
One point worth understanding clearly: the difference between Central and State licensing is not simply online versus offline. Both Central and State processes can involve electronic applications depending on the state’s system. The key question is always which Government is the appropriate Government for that particular establishment and type of work — and that determination must be made before submitting any application.
Contractors who are unsure about jurisdiction should not guess. Applying under the wrong authority causes the application to be rejected or returned, wasting time and creating unnecessary compliance risk. Checking jurisdiction correctly at the start saves significant time later
- State Government Authority
- Factories
- Shops aur commercial establishments
- State PSUs
- Construction sites
- Hotels, malls, multiplexes
Did You know ?
### Did You Know? If a contractor is required to obtain a licence but starts contract work without a valid licence, it may lead to **penalties, prosecution or other legal action** under applicable labour law provisions. It can also create compliance issues for the contractor and principal employer.
- Old act
- Contract Labour (Regulation and Abolition) Act, 1970
- Factories Act, 1948
- Mines Act, 1952
- Building and Other Construction Workers Act, 1996
- Inter-State Migrant Workmen Act, 1979
- Dock Workers (Safety, Health and Welfare) Act, 1986
- Plantation Labour Act, 1951
- Working Journalists and other Newspaper Employees Act, 1955
- Motor Transport Workers Act, 1961
- Sales Promotion Employees Act, 1976
- Beedi and Cigar Workers Act, 1966
- Contract Labour (Regulation and Abolition) Act — Central Rules, 1971
- Cine Workers and Cinema Theatre Workers Act, 1981
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ESIC Benefits Many Employers Don’t Know About
Wages Must Be Paid Before Contractor Payment
Most principal employers assume that if a contractor defaults, only the contractor is at fault. This is not correct under the OSH Code 2020. Under Section 54, if a contractor fails to pay wages or does not hold a valid licence, the principal employer becomes directly responsible and can be held liable by the labour department. This means that every time you engage a contractor, you must verify their licence status before work begins — not after. A valid contractor licence is not just the contractor's concern. It is your legal protection as well.
Worker Records Must Be Maintained
Every contractor must maintain proper and up-to-date records of all contract workers engaged at each work site. This includes a Register of Contract Workers, muster rolls, wage registers, and attendance records. These registers must be available at the work site at all times and must be produced during any inspection by the labour department. Contractors who do not maintain these records — or who maintain them incorrectly — face penalties under the OSH Code and risk having their licence suspended or cancelled. Most small contractors treat record-keeping as paperwork. Under the law, it is a compliance requirement with direct legal consequences.
Welfare Facilities at Every Work Site
A licensed contractor is not just responsible for deploying workers — they are also responsible for ensuring that basic welfare facilities are available at every work site where contract workers are deployed. This includes drinking water, rest rooms, first aid, canteen facilities where applicable, and other amenities as prescribed under the OSH Code rules. These facilities cannot be ignored on the grounds that the work site belongs to the principal employer. The contractor's licence conditions under Rule 86 make these obligations the contractor's direct responsibility — and inspectors check for these during site visits.
Super Specialty Treatment Benift for Employees
Experience Certificate Must Be Issued to Every Worker on Completion When a contract engagement ends — whether the project is completed, the contract is terminated, or the worker leaves — the contractor is legally required under Section 56 of the OSH Code 2020 to issue an Experience Certificate to every worker. This certificate must mention the nature of work performed, the duration of engagement, and other prescribed details. This is not a courtesy document. It is a statutory requirement. Most contractors have never issued a single experience certificate in their entire operations — and are completely unaware that not doing so is a punishable violation under the OSH Code framework.
Code on Social Security 2020 — PF Changes
What Changed in Under New Social Security Code?
Before — Old EPF Act 1952
- Threshold was only 20 workers
- State-wise separate licences required
- Annual licence renewal every year
- Paper-based application process
- Multiple licences for multiple states
- Inter-state migrant workers not covered under same framework
- No provision for pan-India single licence
After — New CoSS 2020
- Threshold raised to 50 workers — uniform pan-India
- Single licence covers all states and work sites
- Licence valid for 5 years — no annual renewal
- Inter-state migrant workers included under same Code
- Penalties up to ₹2 lakh — strictly enforced
- Experience Certificate mandatory
- No sector exemptions anymore
- Principal employer liable if contractor defaults
What Your Business Must Do Now
- Check if your worker count crosses 50 — licence mandatory
- Cancel old CLRA licence — apply fresh under OSH Code
- Link all employees Aadhaar with UAN
- File Form XXI on Shram Suvidha Portal immediately
- → Pay ₹1,000 security deposit per contract worker
- Register voluntarily if below 20 staff
- Consult a PF expert — avoid penalties
Why Choose Us?
Labour Law Wale
Practical ESIC Knowledge. Clear Guidance. Support When You Need It.
Our Services
We offer solutions
PF Advance Withdrew
We handle new contractor licence applications under the OSH Code, check your documents, prepare and submit on the Shram Suvidha Portal, and guide you from start to finish.
full and fnal settlment
We manage the 5-year licence renewal process for contractors — reviewing records, preparing renewal applications, and filing on time so you never face a lapse in validity.
Death Claim
We handle amendments to your existing contractor licence — whether it is a change in the number of workers, change in work location, addition of new work sites, or adress update
Bank/PAN Update
We handle labour department inspections and notices related to contract labour compliance — prepare the required registers, records, and documents, accompany you during inspection where needed, and guide you.
PF Transfer
We handle annual return preparation and filing, ensuring your contractor records are properly maintained and submitted within the required time.
E Nomination
We handle security deposit refund applications, prepare the required documents, and follow up with the concerned department until the refund is processed.
Correction
We manage the 5-year licence renewal process for contractors, including record review, worker details, document preparation and timely filing to keep your licence valid without disruption.
PF pension
We handle eligible ESIC sub-code registration, including document preparation, application submission, and related follow-up until the registration process is completed correctly and without unnecessary delays where possible.
10+
Years of Experiences
Why Should a Company Be Covered Under ESIC
Stronger Employees. A More secure Businees
Bid for Government & Corporate Contracts
Most government tenders and PSU contracts ask for a valid Contract Labour Licence before they even look at your bid. Without it, you are out before the process begins. A valid OSH Code licence keeps you in the running for every contract that comes your way.
Stay Compliant with Contract Labour Requirements
When your licence is valid and your records are in order, you are protected — both from worker disputes and from principal employer liability. Contractors who follow OSH Code conditions correctly face far fewer legal complications during and after the contract period.
Your Principal Employer Stays Protected Too
Every principal employer you work with carries risk if your licence lapses. Under Section 54 of the OSH Code, they become directly liable for your defaults. Contractors who stay licensed and compliant are preferred by serious clients — because working with an unlicensed contractor is a legal risk no business wants to take.
Radha
CEO
Strategic Steps
Industries We Serve with PF Consultancy Services
01
Manufacturing Industry
Factories, Automobile Companies, Garment & Textile Manufacturers, Food Processing Companies, Pharmaceutical Companies, Electronics Manufacturers, Chemical Companies and Packaging Companies.
02
IT & Software Companies
IT Companies, Software Companies, Technology Startups, BPO & KPO Companies, Call Centres, Web & App Development Companies, Digital Marketing Agencies and E-commerce Businesses.
03
Construction, Real Estate & Infrastructure
Construction Companies, Builders & Developers, Engineering Companies, Infrastructure Companies, Real Estate Businesses, Civil Contractors and Project-Based Establishments.
04
Healthcare & Pharmaceutical Services
Hospitals, Clinics, Diagnostic Centres, Nursing Homes, Healthcare Service Providers and Pharmaceutical Establishments.
05
Staffing, Manpower & Outsourcing
Recruitment Agencies, Manpower Service Providers, Labour Supply Companies, Temporary Staffing Agencies, Contract Staffing Companies, , Recruitment Process Outsourcing (RPO) Companies, Facility Staffing Providers.
06
Travel & Tourism
Travel Agencies, Tour Operators, Tourism Companies, Event Management Companies, Travel Support Services, Hotels & Resorts, Car Rental Companies, Travel Booking Companies and Adventure Tourism Companies.
07
Education & Training Institutions
Schools, Colleges, Universities, Coaching Institutes, Skill Development Centres, Vocational Training Institutes, Computer Training Centres and Educational Organisations.
08
Logistics, Transport & Warehousing
Logistics Companies, Transport Companies, Courier & Delivery Services, Warehousing Businesses, Fleet Management Companies, Freight Forwarding Companies, , Cargo Handling Companies and Moving & Relocation Companies.
8 ESIC Benefits for Employees
Timely & Proper Wage Payment
Every contract worker has the right to receive wages on time, in full, as per the agreed terms. The contractor must pay wages before receiving payment from the principal employer. Any delay is a direct violation under the OSH Code 2020.
Timely & Proper Wage Payment
- Email:info@example.com
Overtime Wages at Double Rate
If a contract worker works beyond standard working hours, they are legally entitled to overtime wages at twice the ordinary rate. This is a statutory right — the contractor cannot pay overtime at the regular rate or skip overtime payment entirely.
Overtime Wages at Double Rate
- Email:info@example.com
Equal Pay for Equal Work
Contract workers performing the same work as regular employees of the principal employer are entitled to equal wages. A contractor cannot pay contract workers less simply because they are on contract — if the nature of work is the same, the wage must be the same under the OSH Code 2020.
Equal Pay for Equal Work
- Email:info@example.com
Health and Medical Facilities
Where the nature of work involves health risks or hazardous conditions, the contractor must arrange for periodic health checkups for contract workers. Workers exposed to dust, chemicals, or other occupational hazards have a right to medical examination as prescribed under the OSH Code.
Health and Medical Facilities
- Phone:+1 (859) 254-6589
- Email:info@example.com
Rest Intervals and Weekly Off
Every contract worker is entitled to a rest interval of at least 30 minutes after 5 continuous hours of work. They are also entitled to one weekly day off. A contractor cannot schedule work in a way that denies workers their mandatory rest intervals or weekly off — even if the principal employer's operations require continuous work.
Rest Intervals and Weekly Off
- Email:info@example.com
Inter-State Migrant Worker Protections
If a contractor engages workers from another state, additional protections apply under the OSH Code 2020. These include displacement allowance, journey allowance for travel to and from the work location, suitable accommodation at the work site, and medical facilities. These are not optional — they are statutory entitlements for every inter-state migrant worker.
Inter-State Migrant Worker Protections
- Phone:+1 (859) 254-6589
- Email:info@example.com
Gratuity Eligibility After 1 Year
### **Gratuity Eligibility After 1 Year** If your contract worker completes one year of continuous service, they may be eligible for gratuity under the applicable provisions of the OSH & WC Code. Gratuity is calculated based on the worker’s eligible service and wages. Ensure gratuity is properly calculated and paid as per the applicable statutory requirements and prescribed rules.
Gratuity Eligibility After 1 Year
- Phone:+1 (859) 254-6589
- Email:info@example.com
No Forced or Bonded Labour
A contractor cannot hold back wages, documents, or identity proof to force a worker to continue working. Every contract worker has the right to leave after completing their engagement. Any form of forced or bonded labour arrangement is a criminal offence under Indian law.
No Forced or Bonded Labour
- Phone:+1 (859) 254-6589
- Email:info@example.com
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OSH code penalty
Most contractors think getting the labour licence is enough. But keeping the licence valid and following its conditions is equally important. Missing records, ignoring work-order requirements or violating licence conditions can create serious compliance issues.
Central Labour Licence Calculator
Calculate Licence Fees & Security Deposit Instantly
Licence Fee Slabs (Central Rules)
| NO. OF LABOURS | LICENSE FEE |
|---|---|
| 0 to 49 Workers | NIL (Exempted) |
| 50 to 100 Workers | ₹1,000 |
| 101 to 300 Workers | ₹2,000 |
| 301 to 500 Workers | ₹3,000 |
| 501 to 1,000 Workers | ₹5,000 |
| 1,001 to 5,000 Workers | ₹10,000 |
| 5,001 to 10,000 Workers | ₹20,000 |
| 10,001 to 20,000 Workers | ₹30,000 |
| Above 20,000 Workers | ₹40,000 |