Under the Occupational Safety, Health and Working

Solution

The OSH Code, 2020 revises the threshold for applicability of contract labour provisions from the earlier 20 workers (under the Contract Labour (Regulation and Abolition) Act, 1970) to 50 or more contract workers employed in any establishment. This revision was made for administrative simplification, but all establishments employing 10 or more contract workers remain subject to comprehensive safety and welfare provisions without dilution. If a contractor fails to pay wages or provide prescribed welfare facilities to contract workers, the Principal Employer is directly liable to ensure such payment or provision, and can recover the amount from the contractor afterwards. The Code also introduces a landmark reform whereby contract workers who have worked for at least 1 year are entitled to an experience certificate detailing the nature of work, duration, and wages, improving their employability and portability of work records. Additionally, the Code prohibits employment of contract labour in core activities of any establishment, except in certain specified circumstances such as sudden increase in volume of work.