Compliances Related to Contract Labour under Gujarat Occupational Safety, Health and Working Conditions Rules, 2025

Background

The Gujarat Occupational Safety, Health and Working Conditions Rules have been framed by the State Government to operationalise the Occupational Safety, Health and Working Conditions Code, 2020 in alignment with the Central Rules issued under the Code. These Rules provide the state-level structure necessary to implement the objectives of the Central Code, which was enacted to consolidate multiple labour laws and create a uniform framework for ensuring safe, healthy and humane working conditions across establishments. By adopting the principles, standards and obligations prescribed under the Central Code and Central Rules, the Gujarat Rules lay down detailed procedures relating to registration of establishments, duties of employers and workers, safety management, inspections, reporting and enforcement within the state. They also designate competent state authorities and enforcement mechanisms to ensure effective compliance, thereby bridging the Central legislation with practical administration and regulation at the state level.

Applicability

These rules as per Chapter XI (Part I) of the Code are applicable to:

  • Establishment contractor employing 50 or more than 50 contract labourers in past 12 months for non-intermittent or casual work.

Compliance Requirements under the Rules in Accordance with the Code

  1. Form 26: Contractor’s License (Section 47, 48, Rule 48)

License shall be granted in Form-26 against application by a contractor for the grant of a license shall be made on-line electronically to the Commissioner of Labour in Form 25.

Every license granted or renewed is subject to the following conditions, namely: —

(i) the license shall be non-transferable;

(ii) the number of workers employed as contract labour by the contractor shall not, on any day, exceed the maximum number specified in the license;

(iii) the rates of wages payable to the workers by the contractor shall not be less than the rates prescribed under the Code on Wages, 2019 and where the rates have been fixed by agreement, settlement or award, not less than the rates so fixed.

2. Responsibilities of contractor in Gujarat (Section 48(4), Rule 52)

(1) Contractor shall pay workers wages not less than those prescribed under the Code on Wages, 2019, or as fixed by agreement, settlement, or award, whichever is higher.

(2) Where contractor’s workers perform the same or similar work as those directly employed by the principal employer, they shall receive equal wages, holidays, hours of work, and service conditions. Any dispute regarding similarity of work shall be referred to the Inspector-cum-Facilitator, whose decision shall be final.

(3) In other cases, wages, holidays, hours of work, and service conditions shall be governed by the Code and rules thereunder.

(4) All contract workers shall be enrolled under EPF and ESI, subject to applicability under the Code on Social Security, 2020.

(5) Any change in worker strength or service conditions shall be notified by the contractor electronically to the Licensing Authority.

  1. Intimation of Contract Work Order by Contractor in Gujarat (Section 50, Rule 53)

(1) Every contractor shall, within fifteen days of the receipt of a contract work order, intimate about the contract work order containing the details such as the name of the principal employer, address of the premises where work is being undertaken, date of commencement of the contract work, the number of contract labour employed under that work order, duration of work orders.

(2) The details of work order shall be sent by the contractor or his authorized representative.

(3) The intimation shall be sent electronically on the Portal of Commissioner of Labour or e-mail of the Commissioner of Labour of Labour or his representative as may be notified on the website of Commissioner of Labour.

  1. Liability of principal employer for welfare facilities (Section 53)

Welfare facilities specified under section 23 and section 24 shall be provided by the principal employer of the establishment to the contract labour who are employed in such establishment

  1. Payment of Wages to Contract Labour in Gujarat (Section 55(3), Rule 55)

(1) The contractor shall fix wage periods, not exceeding one month.

(2) Wages to contract labour shall be paid within seven days from the end of the wage period.

(3) Payment shall be made only through bank transfer or electronic mode.

  1. Principal employer’s liability for payment of wages where contractor fails to do so (Section 55(3), Rule 81of Occupational Safety, Health and Working Conditions (Central) Rules, 2020)

If the contractor fails to pay wages within the prescribed period or makes a short payment, the principal employer shall be responsible for paying the full wages or the unpaid balance to the contract labourer. The principal employer can then recover this amount from the contractor either by deducting it from any amount payable to the contractor under any contract or as a debt owed by the contractor.

(1) The contractor shall fix the wage periods in respect of which wages shall be payable and no wage period shall exceed one month.

(2) The wages of every person employed as contract labour in an establishment or by a contractor shall be paid before the expiry of seventh day after the last day of the wage period in respect of which the wages are payable.

(3)The wages shall be disbursed through bank transfer or electronic mode only.

  1. Form 27: Experience Certificate of Contract Labour (Section 56, Rule 57)

Every concerned contractor shall issue on demand, experience certificate in Form 27 to the contract labour giving details of the period, work performed, experience gained in various fields performed by such contract labour.

  1. Prohibition of employment of contract labour in Gujarat (Section 57(2), Rule 58)

It is prohibited to employ contract labour, Except in following cases

(a) if such activity is ordinarily done through contractor; or

b) the activities are such that they do not require full time workers

(c) any sudden increase of volume of work in the core activity in less time

If a question arises as to whether any activity of an establishment is a core activity or otherwise, the aggrieved party may make an application, to the Deputy Secretary, Government of Gujarat, Labour, Skill Development and Employment Department giving reasons along with supporting documents.

Penalty & Punishment

General Penalty u/s 94: For contravention, the employer or the principal employer of the establishment, as the case may be, shall be liable to penalty which shall not be less than two lakhs rupees but which may extend up to three lakh rupees, and if the contravention is continued after the conviction, then, with further penalty which may extend to two thousand rupees for each day till such contravention continues

 

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