Reforms under Contract Labour Act subsumed by OSHWC Code, 2020

The Ministry of Labour & Employment has issued a press release on 10 Feb 2022 stating that the reforms carried out under Contract Labour Act has been subsumed in the OSHWC Code, 2020.

The reforms carried out under the existing Contract Labour Act which are subsumed by the Occupational Safety, Health and Working Conditions Code, 2020 are:

  • Provision of online licensing for contractors with validity of 5 years.
  • Provision of common license and deemed approval of licensing.
  • Provision of experience certificate, on demand, by Contractor to Contract Labour and provision for issuance of letter of appointment to contract labour will promote formalization of employment.
  • Definition of core activity of an establishment has been introduced. Further, employment of contract labour in core activities of any establishment is prohibited except in certain circumstances.
  • Various welfare facilities shall be provided by the principal employer of the establishment to the contract labour which would create healthy, safe and secure working conditions.
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