Gujarat explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Part I of Chapter IX of the Gujarat Occupational Safety, Health and Working Conditions Rules, 2025 (rules 46 to 58) covers the contractor's licence, its conditions, fees, security deposit, wages and the principal employer's duties. Part II (rules 59 to 61) covers inter-State migrant workers. The fees and the deposit are exactly as printed.
The rules are the Gujarat Occupational Safety, Health and Working Conditions Rules, 2025, as notified on 6 June 2025 (Gujarat Government Gazette, Extraordinary, 12 June 2025), in force from the date on which the OSH Code, 2020 comes into force. A contractor applies online in Form 25, deposits a bank guarantee of Rupees 1000 for each worker and pays a fee from Rs. 1000 to Rs. 40000 by number of workers; no licence is required up to 49 contract labour (rule 49). Wages are paid before the expiry of the seventh day after the wage period, by bank transfer or electronic mode only (rule 55).
Later amendments and State notifications under these rules should be checked in the State Gazette.
Commencement and Central rules
Rule 1(4) reads: "They shall come into force from the date on which the Occupational Safety, Health and Working Conditions Code, 2020, come into force." The four Labour Codes were brought into force from 21 November 2025. The rules supersede the Contract Labour (Regulation and Abolition) (Gujarat) Rules, 1972 and the Inter-State Migrant Workmen Rules, 1981, as set out in our article on registration under the Gujarat OSH Rules. The Central rules are in rules 85 and 86 (qualification and conditions), rules 87 and 88 (application and single licence), rules 91 and 92 (renewal and refund) and rule 102 (journey allowance). Contractors and principal employers can use our labour law compliance service to check licence status.
What the contractor must do
| Obligation | Rule | Form | Period, fee or amount as printed | Authority |
|---|---|---|---|---|
| Apply for licence | 47 | Form 25, online | Not stated | Commissioner of Labour |
| Licence granted | 48 | Form 26 | Non-transferable; fees non-refundable | Licensing authority |
| Bank guarantee | 49(1) | Deposit before the licence issues | Rupees 1000 for each worker to be employed | Licensing officer |
| Fees | 49(3) | Table below | Rs. 1000 to Rs. 40000 | Licensing authority |
| Renewal application | 50 | Portal | At least 30 days before expiry and not before 90 days of expiry; 25 per cent additional fee if late | Licensing authority |
| Intimate a contract work order | 53 | Portal or email | Within fifteen days of receipt | Commissioner of Labour |
| Wage period and payment | 55 | Bank transfer or electronic mode | Wage period not above one month; pay before the expiry of the seventh day after the wage period | Contractor |
| Re-furnish deposit after wages are paid from it | 56 | Deposit | Within a period of fifteen days or the licence is liable to be suspended | Commissioner of Labour |
| Experience certificate on demand | 57 | Form 27 | On demand | Contractor |
Fees (rule 49(3))
| Number of contract labour | Fee |
|---|---|
| Up to 49 | No licence required; Nil |
| 50 but not above 100 | Rs. 1000 |
| 101 but not above 300 | Rs. 2000 |
| 301 but not above 500 | Rs. 3000 |
| 501 but not above 1000 | Rs. 5000 |
| 1001 but not above 5000 | Rs. 10000 |
| 5001 but not above 10000 | Rs. 20000 |
| 10001 but not above 20000 | Rs. 30000 |
| 20001 and above | Rs. 40000 |
Conditions of the licence (rules 46 and 48)
Under rule 46 the contractor ensures that hours of work conform to section 25 of the OSH Code and wages are paid in accordance with the Code on Wages, 2019. The principal employer provides toilets, washrooms, drinking water, bathing facilities if required, a changing room, a first aid box, a canteen and a crèche at the premises. All other facilities and entitlements come from the contractor. If the contractor fails to pay minimum wages, the Commissioner of Labour or Director of Labour or his representative causes payment out of the security deposit under rule 51, including by invoking the bank guarantee. Under rule 48(2), every licence is non-transferable; the number of contract labour on any day cannot exceed the maximum in the licence; fees paid are non-refundable save as the rules provide; and wage rates cannot be less than those under the Code on Wages, 2019 or fixed by agreement, settlement or award.
Renewal, refund and appeal (rules 50, 51 and 54)
On renewal the security deposit and fee are the same as for the grant, with an additional 25 per cent if the application is late; the authority is to renew within 30 days. On expiry, a contractor who does not want to renew applies electronically for refund of the security (in the form of the bank guarantee) with a copy of the licence, a notice of completion of work and bank details; if there is no breach and no forfeiture order, the authority directs the refund, deducting any forfeiture, and disposes of the application as far as possible within 30 days. The Commissioner of Labour is the appellate authority under section 52(1).
The contractor's responsibilities (rules 52, 55, 56 and 58)
Wage rates, holidays, hours and other conditions for contract workers doing the same or similar work as the principal employer's direct workers are the same as those workers' (rule 52(2)); a dispute on whether the work is similar goes to the Inspector-cum-Facilitator, whose decision is final. All contract labour is made a member of EPF and ESI subject to applicability under the Code on Social Security, 2020. The contractor notifies any change in the number of workers or conditions to the licensing authority electronically. If wages are unpaid, the Commissioner or his representative holds an inquiry, hears the contractor and orders payment from the security deposit (rule 56). A question whether an activity is a core activity goes by application, with reasons and documents, to the Deputy Secretary, Labour, Skill Development and Employment Department (rule 58).
Inter-State migrant workers (rules 59 to 61)
The employer pays a lump sum for the to-and-fro journey fare from the place of employment to the place of residence in the home State, by train (not less than II Class Sleeper), bus or any other passenger transport, if the worker has worked not less than 180 days in the concerned establishment(s) in the preceding twelve months, once in twelve months. If the worker changed employers without having claimed it from the previous employer, the present employer pays on the worker's certificate once the worker has completed one hundred and eighty days in the preceding twelve months including the earlier period. The Labour, Skill Development and Employment Department provides a helpline number, without call charges, for queries and grievances (rule 60), and the State may identify studies on safety, health and welfare (rule 61). Rules 62 and 63 cover the agreement for audio-visual workers and the dispute process.
A worked example
Banas Facility Services LLP, a contractor, will supply 320 workers to a principal employer in Gandhinagar. It applies online in Form 25, deposits a bank guarantee of Rupees 1000 for each of the 320 workers, and pays the Rs. 3000 fee for 301 to 500 workers. It intimates the work order within fifteen days of receipt, pays wages by bank transfer before the seventh day after each month, and applies for renewal not less than 30 days before expiry.
Need help with a contractor licence?
Contractors and principal employers share duties here, and a missed renewal costs a 25 per cent additional fee. Our labour law compliance team can prepare the licence file, the bank guarantee and the renewal calendar.
Key takeaways
- No licence is required up to 49 contract labour; fees run from Rs. 1000 to Rs. 40000.
- The bank guarantee is Rupees 1000 for each worker.
- Renewal: apply 30 to 90 days before expiry; 25 per cent additional fee if late.
- Pay wages by bank transfer before the seventh day after the wage period.
- Migrant workers get a journey allowance once in twelve months after 180 days.
Read next
- Gujarat OSH Rules, 2025: registers, records, returns and the Inspector-cum-Facilitator
- Gujarat OSH Rules, 2025: factories, beedi and cigar premises, licence, plans and fees
- Rules 87 and 88 of the Central OSH Rules: contractor licence application and single licence
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.