Contract labour refers to workers hired through a contractor to work for a principal employer (concept). Outsourcing uses third parties to perform functions/services, often using contract labour. Because contract workers can be vulnerable to exploitation and “disguised employment,” labour law regulates registration, licensing, wages and welfare to ensure fair treatment (concept).
This topic is commonly asked as:
You should be able to:
Key idea: in contract labour, supervision/control and wage responsibility can be split, so regulation ensures accountability (concept).
Reasons (write any 6–8):
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Reasons (any three) (concept):
Any three points are sufficient.
Principal employer vs contractor (concept):
Any three areas are sufficient.
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Contract labour refers to workers hired through a contractor to work for a principal employer (concept). Outsourcing uses third parties to perform functions/services, often using contract labour. Because contract workers can be vulnerable to exploitation and “disguised employment,” labour law regulates registration, licensing, wages and welfare to ensure fair treatment (concept).
This topic is commonly asked as:
You should be able to:
Key idea: in contract labour, supervision/control and wage responsibility can be split, so regulation ensures accountability (concept).
Reasons (write any 6–8):
Main parties (concept):
Relationship (concept): Principal employer ↔ contractor (contract) → contractor engages workers → workers work at/for principal employer.
Applicability depends on notified thresholds and establishment types (concept). For exam overview answers, write:
Exact numbers can vary across rules/updates; focus on concepts unless asked specifically.
At a basic level:
Core obligations (concept):
Compliance usually includes (concept):
Common risks (concept):
Check coverage → verify contractor license → execute written contract with compliance clauses → ensure onboarding and identity records → monitor wages payment and statutory deposits → ensure welfare facilities at site → periodic audits and inspection readiness (concept)
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Contract labour means workers engaged through a contractor for a principal employer (concept).
Effective regulation ensures fair treatment of contract workers and reduces compliance risk for establishments (concept).