Contract labour and apprentices

Contract labour under the OSH Code

• The contract labour provisions apply where 50 or more contract workers were engaged on any day in the preceding 12 months (the old Act’s threshold was 20). Contractors supplying them need a licence.
• Contract labour may not be used in core activities, with the exceptions the Code lists (for example where the work is ordinarily done through contractors, or is intermittent).
• The principal employer remains responsible for welfare facilities and, if the contractor fails, for paying wages and statutory dues. Under the EPF Scheme 2026 the principal employer deposits PF for an unregistered contractor’s workers and is liable if a registered contractor defaults.
• Keep each contractor’s licence, registration numbers and monthly PF/ESI challans for their workers on file.

Apprentices

• The Apprentices Act, 1961 still applies separately; the Labour Codes did not replace it.
• An establishment with a workforce of 30 or more (regular and contract) must engage apprentices at 2.5% to 15% of its workforce each year; smaller ones may engage them voluntarily.
• Apprentices are trainees, not workers: they are paid a stipend at least the rate prescribed by the rules, and are outside PF, ESI and bonus.
• Establishments register and post openings on the apprenticeship portal; the Government shares part of the stipend under the National Apprenticeship Promotion Scheme.

References

1. The Occupational Safety, Health and Working Conditions Code, 2020 (India Code)
2. The Apprentices Act, 1961 (India Code)
3. Apprenticeship India portal (NAPS)
4. NSDC — FAQs on apprenticeship under the Apprentices Act, 1961