Contract Labour 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.
Chapters IX to XII of the Occupational Safety, Health and Working Conditions (Lakshadweep) Rules, 2025 cover the licence-driven parts of the OSH Code: contractors, inter-State migrant workers, audio-visual and beedi work, factory plans and licences, plantations, penalty procedure, and the Social Security Fund. This article takes them Part by Part and quotes only the Lakshadweep text.
A contractor applies in Form-28 on the portal with the fee by workforce band (from 3000 for up to 100 workers) and security of Rs. 270 per worker (rule 62). An inter-State migrant worker with 180 days in the preceding twelve months gets a journey allowance once in twelve months (rule 76). A factory licence is applied for in Form-49 and the licence is issued within thirty days (rule 96). An appeal against a penalty carries a fee of two percent of the penalty (rule 146(3)).
The rule set and commencement
The rules are the Occupational Safety, Health and Working Conditions (Lakshadweep) Rules, 2025, as notified on 27 April 2026 (F.No.08/04/2024-LE&T, Lakshadweep Gazette Extraordinary of the same date). Later amendments and State notifications under these rules should be checked in the State Gazette. Rule 1(3) reads: "They shall come into force on the date of their final publication in the Official Gazette." The four Codes were brought into force from 21 November 2025. Registration, duties, hours and registers are in our companion article on the Lakshadweep OSH rules on registration, duties, hours and registers, and the Social Security Code rules are in the Lakshadweep gratuity, maternity and compensation article.
How the rules sit with the Central rules
The Central rules on contractors are in rules 85 and 86, rules 87 and 88, rules 91 and 92 and rule 102. Factory amenities are in rules 22 and 23, rule 53, rule 57 and rule 58, and penalties in rule 177, rule 182 and rule 183. For help with a contractor, factory or plantation licence in the islands, our labour law compliance team can prepare the applications and track the dates.
Part I: contract labour (rules 61 to 75)
A contractor's licence is non-transferable, fees are non-refundable except as the rules provide, wages follow the Code on Wages and its rules, the contractor's workers get the same wage rates, holidays, hours and conditions as the principal employer's workers on the same or similar work, changes in worker numbers are notified, and a copy of the licence is displayed at the work premises (rule 61).
| Obligation | Rule | Form | As printed |
|---|---|---|---|
| Licence application | 62(1), (2) | Form-28, portal | Fee and security with the application |
| Fee | 62(2) | Schedule | Up to 100 workers: 3000; 101-250: 5000; 251-500: 10000; 501-1000: 20000; 1001-2500: 30000; above 2500: 50000 |
| Security | 62(2) | Schedule | Rs. 270/- per worker |
| Grant | 62(4), (5) | Form-25 | Printed as within forty-five days, and deemed granted on expiry of thirty days if the authority fails to act |
| Renewal | 63 | Form-24; Form-27 for automatic renewal | Apply thirty days before expiry; renewed within thirty days, else deemed renewed; automatic renewal for one year if particulars are unchanged |
| Amendment | 64 | Form-26 | Before any change or within three days after; fee rupees five hundred plus the difference in fee and security; issued within three days |
| Late fee | 65 | Portal | Twenty-five per cent in excess of the ordinary fee |
| Intimation of work | 68 | Form-28, electronic | Fifteen days before commencement of work |
| Refund of security | 70 | Application; record in Form-29 | Within thirty days of the application if no breach and no payment order |
The contractor pays wages to each worker before the period under the Wage Code rules; the principal employer ensures timely disbursement, and if the contractor fails or short-pays, the principal employer pays in full or the balance and recovers it from the contractor (rule 66). Wages go by the mode in section 55 of the Code; where that is not practicable, cash or another mode may be used on conditions that include the worker's option, an establishment at least one kilometre from the nearest bank and from any ATM, network difficulty, or more than thirty three percent of workers unfamiliar with banking, with the Inspector-cum-Facilitator informed (rule 72). Unpaid wages can be met from the security deposit through the Inspector-cum-Facilitator (rule 73). The contractor issues an experience certificate on the listed points (rule 74). If the contractor fails to give the intimation of work, the designated authority may start suspension or cancellation within two days, with a show-cause notice, a reply within twenty-four hours and a speaking order within the next thirty-six hours (rule 69). A disputed matter goes by application in Form-30 to the Administration, which refers it within seven days to the designated authority (rule 75).
Part II: inter-State migrant workers (rules 76 to 78)
The employer pays a lump sum for the to-and-fro journey to the home State, at not less than II Class Sleeper in train or Bunk Class in ship or by bus or other transport, to a worker who has worked not less than 180 days in the concerned establishments in the preceding twelve months, once in twelve months; a worker who changed employer and has not taken the allowance may claim it from the new employer on a certificate, counting the period with the earlier employer (rule 76(1)). The employer keeps a register in Form 31 (rule 76(2)). Rule 77 requires a helpline number without call charges for migrant workers' queries and grievances, and rule 78 lets the Administration identify studies on their safety, health and welfare.
Part III: audio-visual workers (rules 79 to 81)
The agreement between producer and employee is in Form-32, and the producer forwards a copy to the Inspector-cum-Facilitator (rules 79 and 80). A dispute body of labour department and EPFO officers, a social activist and an eminent advocate begins conciliation within three days and decides within 45 days from the start (rule 81).
Part IV: beedi and cigar premises (rules 82 to 85)
A person who uses or allows a place for beedi or cigar work applies in Form-49 on the portal with the fee in Schedule II; the licence in Form-50 is issued within thirty days, failing which it is deemed granted (rule 82). The plan follows rules 86 to 94 (rule 83). Renewal is on Form-49 for one year or up to five years, with fees multiplied by the years and an extra twenty-five percent if late; automatic annual renewal is available in Form-51 (rule 84). Schedule II prints the annual fee by workers: 21-100: 15000; 101-150: 25000; 151-200: 35000; 201-250: 50000; 251-500: 75000; 501-750: 100000; 751-1000: 125000; above 1000: 100000.
Part V: factories (rules 86 to 125)
| Step | Rule | Form | As printed |
|---|---|---|---|
| Plan approval before building or use | 86, 87 | Form-33, Form-34 | Chief Inspector-cum-Facilitator approves or rejects within 45 days, else deemed approved; observations raised once; reject if resubmitted twice unresolved or not resubmitted within sixty days |
| Stability certificate | 88 | Form-35 | Valid five years from acceptance |
| Approval lapses | 90 | None | Void if no construction starts within one year |
| Processing fee for plans | 94 | Portal | Rupees one per square feet |
| Room standards | 93 | None | Work room height not less than 3.50 metres; at least 36 square feet of floor space and 500 cubic feet breathing space per person where power is used |
| Licence | 95, 96 | Form-49, Form-50 | Issued within thirty days, else deemed granted; fee as Schedule I |
| Amendment | 97 | Form-49 | Three days before or within three days after; fee five hundred rupees plus the fee difference; deemed amended after fifteen days |
| Renewal | 98 | Form-52 | One year to ten years; apply thirty days before expiry; automatic one-year renewal |
| Transfer | 99 | Form-49 | Fee rupees five hundred; deemed transferred after seven days |
| Late fee | 101 | Portal | Twenty five percent, and 1% for every thirty days after ninety days |
Schedule I prints the licence fee for one calendar year by load in kilowatts and number of workers, from 1000 (without power, up to 19 workers) to 100000 (above 5000 kilowatts, above 2500 workers). Rule 105 declares the dangerous operations, with its Schedules of dangerous operations named in the rules; they are not explained here. Rules 106 to 121 cover hazardous processes: the Site Appraisal Committee and application in Form-41 (rule 106), a written Health and Safety Policy, with exemptions for smaller factories (rule 107), Material Safety Data Sheets in Form-42 (rule 108), disclosure and review of information, qualifications of supervisors, medical examination before employment and every six months in hazardous processes with records in Form-39 and fitness certificate in Form-38 (rule 116), Occupational Health Centres (rule 117) and permissible levels (rule 121). An occupier may appeal under section 90 in Form-43 to the Inspector-cum-Facilitator, who is the appropriate authority (rules 122 and 123), and rule 125 requires a list of persons holding supervisory, managerial or confidential positions.
Part VI: plantations (rules 126 to 144)
Housing is provided near the work place on dry, well-drained land with lighting, drains and toilets (rules 126 to 128), maintained at the employer's expense and lime-washed at least once a year (rule 129), with no rent charged (rule 130). A worker or family may retain the house for up to two months after death, retirement, transfer or resignation (rule 131). Sickness allowance is payable for certified sickness for a total of fourteen days in a year at normal wages (rule 132). A crèche is required in a plantation with fifty or more workers on any day of the preceding twelve months, for children aged 2 to 6, with at least fifteen square feet per child (rule 133). A primary school is required if workers' children aged six to twelve exceed twenty-five (rule 134). Further rules cover recreation, hazardous substances, supervisors' qualifications, storage, medical examination with a health register, washing and cloak-room facilities, protective equipment and a precautionary notice.
Chapters X to XII: offences, fund and common licence
For a penalty under section 111, the officer, not below Under-Secretary rank, serves notice within seven days of knowing of the offence, takes the reply within the period in the notice, and completes the enquiry within sixty days with a speaking order; the penalty goes to the section 115 fund with a record in Form-44 (rule 145). An appeal lies in Form-45 with a fee of two percent of the penalty, paid on the portal (rule 146). Composition is by application in Form-46, decided within seven days, with the amount credited to the fund before the 7th day of the next month and recorded in Form-47 (rule 147). Under rule 148 the Inspector-cum-Facilitator keeps the Social Security Fund record in Form-48, the fund is credited to the Lakshadweep Unorganized Workers Social Security Board, and one source is ten rupees per worker paid by the employer at registration. Rule 149 provides a common licence in Form-49, issued in Form-50 within thirty days, with fees at the rates the Administration specifies from time to time; Schedules I to III print fees as above. Rule 151 deems existing registrations and licences issued under these rules if details are given to the registering officer within 6 months from the commencement.
A worked example
A contractor supplying 180 workers to a hotel in Kadmat applies in Form-28 on the portal, pays the 101-250 band fee of 5000 and security of Rs. 270 for each of the 180 workers, displays the licence at the premises, and intimates the Inspector-cum-Facilitator in Form-28 fifteen days before work begins. When a worker from another State has completed 180 days in twelve months, the hotel pays the journey allowance and records it in Form 31.
Common lapses
- Applying for a renewal later than thirty days before expiry and paying the twenty-five percent late fee.
- Starting contract work without the fifteen-day intimation.
- Not paying the journey allowance once the worker has 180 days.
- Letting a plan approval lapse because construction did not start within one year.
Need help with contractor, factory or plantation licences in Lakshadweep?
If you need an application, a fee computation or a renewal calendar prepared against these chapters, our labour law compliance service can map each licence to its form, fee and time limit.
Key takeaways
- Contractor: Form-28, fee by band from 3000, security Rs. 270 per worker; late fee twenty-five per cent.
- Migrant worker with 180 days in twelve months gets a journey allowance once in twelve months.
- Factory licence in Form-49 within thirty days; plan approval within 45 days.
- Plantation crèche at fifty or more workers; primary school above twenty-five children aged six to twelve.
- Penalty appeal in Form-45 with a fee of two percent of the penalty.
Read next
- Occupational Safety, Health and Working Conditions (Lakshadweep) Rules, 2025: registration, duties, hours and registers
- Code on Social Security (Lakshadweep) Rules, 2025: gratuity, maternity benefit, employee's compensation and the Employees Insurance Court
- Rules 87 and 88 of the Central OSH rules: contractor licence application and single licence
- State rules under the four Labour Codes: which States have notified final rules
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.