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ARTICLE · 30 SEPTEMBER 2020

Analyzing Key Reforms Impacting Contract Labour Engagement

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The Code on Occupational Safety, Health and Working Conditions, 2020 ("Code") has been passed by both the Houses of Parliament on September 23, 2020

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Minu Dwivedi
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Shreya Chowdhury
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The Code on Occupational Safety, Health and Working Conditions, 2020 ("Code") received President's assent on September 28, 2020. Its provisions will come into force from the appointed date to be notified by the Central Government. This Code, amongst others, seeks to regulate the engagement of contract labour by offices, shops, commercial, and industrial establishments, including factories, and repeal the Contract Labour (Regulation and Abolition) Act, 1970 ("CLRA").

This article broadly discusses the key reforms on contract labour proposed to be introduced by the Code from a private sector perspective.

More Workers included under Contract Labour

The Code expands the definition of "contract labour" to include inter-State Migrant workers. Workmen in supervisory capacity who earn monthly wages in excess of INR 500 are not considered 'contract labour' under the CLRA. This wage ceiling will be enhanced under the Code to INR 18,000. Consequently, workers in

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