Statutory
Contract labour
Contract labour is workers employed through a contractor rather than directly, regulated by the Contract Labour Act, with the principal employer responsible if the contractor defaults.
Establishments engaging 20 or more contract workers (50 under the OSH Code) need registration, and contractors need a licence. Wages, PF and ESI remain the contractor's duty, but the principal employer must ensure they are paid.
Core, perennial work is not meant to be done through contract labour.
In Indian payroll
Housekeeping, security and canteen staff are the usual contract categories. Principal employers increasingly ask contractors for monthly PF and ESI challans as a condition of payment.
What is Contract labour?
Contract labour is workers employed through a contractor rather than directly, regulated by the Contract Labour Act, with the principal employer responsible if the contractor defaults.
Why does Contract labour matter in Indian payroll?
Housekeeping, security and canteen staff are the usual contract categories. Principal employers increasingly ask contractors for monthly PF and ESI challans as a condition of payment.
Related terms
In Kuzhu
The Employees & Org Structure module in Kuzhu is where Contract labour is handled, on the same employee record as everything else.
WhatsApp us