Rules 87 and 88 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.
Rule 87 says every contractor's application for a licence within a State is made online through the Shram Suvidha Portal in Form XXI. Rule 88 lets a contractor who works in more than one State, or all over India, apply for a single licence, with a 30-day consultation window for the States, a 45-day decision period and a five-year validity.
Rule 87: apply electronically on the Shram Suvidha Portal in FORM-XXI. Rule 88: for more than one State or the whole of India, apply on the Shram Suvidha Portal (or a portal designated by the Central Government) in FORM-XXI; the authority consults the State Government electronically, and no response in 30 days means consultation is deemed complete; the application is approved or disapproved within 45 days, failing which no objection is deemed and the licence is auto-generated; the licence is valid for five years.
The Code provisions behind the rules
Section 47(1) of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) bars a contractor from supplying or engaging contract labour, or executing work through it, except under a licence. Section 47(3)(b) says the licence is obtained from the authority designated by the Central Government where that Government is the appropriate Government, and by the State Government's designated authority where the State is. The first proviso lets a contractor who wants a licence "in more than one States or for the whole of India" obtain it from the authority designated by the Central Government. The second proviso requires that authority to consult the concerned State authorities electronically before issuing a licence for establishments for which the State Government is the appropriate Government. Section 48(1) requires applications electronically, in the form and manner prescribed; section 48(3) fixes five years' validity. See our sections 48 and 49 explainer.
The Central Rules apply where the Central Government is the appropriate Government. Where the State is the appropriate Government, the State's own OSH rules and portal apply. A labour law compliance review can sort out which licence route fits your contracts.
Rule 87: the application
Rule 87 reads: every application by a contractor "within a state" for the grant of a licence shall be made "on-line electronically through Shram Suvidha Portal in FORM-XXI".
Form XXI is titled "Application for Grant of Licence/ Renewal of Licence/Amendment of Licence (including common/single licence)", issued under the Ministry of Labour and Employment. Its parts, as printed, include:
| Part | Content |
|---|---|
| I | Particulars of the establishment: name, address, activity per National Industrial Classification and nature of work |
| II | Details of the employer: name, address, email and mobile |
| III | Particulars of the contract labour to be employed: worksite, name of work, dates of commencement and completion, establishment where labour is employed, site in-charge; maximum number of workmen on any date; licence fee and security deposit with transaction IDs |
| IV | Establishments for which a common licence is required, if applying for one |
| V | Establishments for which a single licence is required, if applying for one: States, works, maximum labour, dates and registration numbers |
| Renewal and amendment sections | Licence number and date, LIN and PAN, expiry date, whether suspended or revoked, fees paid; for amendment, the change sought and any additional fee or security deposit |
The form carries a note that it is an online application summary applied on the Shram Suvidha Portal or designated portal, signed by e-Sign or digital signature. The fee and security deposit are set in rule 90; see our rules 89 and 90 article.
For rule 87 the text is silent on a time limit for a decision on a single-State application. Rule 88 gives time limits for single licences only.
Rule 88: single licence for more than one State or all India
Sub-rule by sub-rule
| Sub-rule | What it says |
|---|---|
| 88(1) | A contractor desirous of a licence for (i) supplying or engaging contract labour or (ii) undertaking or executing contract works under section 47(1) or (2), for more than one State or the whole of India, applies electronically on the Shram Suvidha Portal or portal designated by the Central Government, in FORM-XXI, to the licensing authority |
| 88(2) | The application is submitted electronically to the authority |
| 88(3) | The concerned State Government is consulted electronically; if no response in thirty days from the date of issue of the communication, the consultation process is deemed complied with |
| 88(4) | The application is approved or disapproved within forty-five days of the contractor's application; beyond that it is deemed there are no objections and the licence is auto-generated on the portal |
| 88(5) | A copy of the licence goes to the State Government in whose jurisdiction the contract work is carried out |
| 88(6) | The licence is valid for five years |
What the 30 and 45 days mean in practice
- Consultation is deemed complete after 30 days of silence. A State authority that does not respond within thirty days cannot hold up the process.
- The 45-day clock starts on the contractor's application, not on the end of consultation. The thirty-day consultation runs inside it.
- Deemed approval. If the authority neither approves nor disapproves within forty-five days, the licence is auto-generated. Keep the acknowledgement number and date of application on file, as they prove when the clock began.
- The text is silent on what happens to an incomplete application, on any right to a resubmission window, and on the fee for a single licence beyond the rule 90 table. Do not assume rules not in the text.
Which workers and which contractors
Section 45 applies the Part to establishments with fifty or more contract labour and to manpower supply contractors with fifty or more. A single licence under rule 88 is for a contractor who needs to operate in more than one State or across India. A contractor active in one State applies under rule 87.
Practical examples
Example 1. A facility management company supplies housekeeping staff to offices in Maharashtra and Karnataka. It applies once under rule 88 in Form XXI. The authority consults both States electronically; if one does not reply in thirty days, that consultation is deemed done.
Example 2. A contractor applies on 1 March. On 15 April nothing has happened on the portal. Forty-five days have passed from the date of application, so under rule 88(4) the licence is deemed to be issued with no objection and is auto-generated.
Example 3. A civil contractor working only in Gujarat applies in Form XXI through the Shram Suvidha Portal under rule 87, not rule 88.
Compliance checklist
- Decide before applying whether you need a one-State licence (rule 87) or a single licence (rule 88).
- Prepare Form XXI particulars: worksites, maximum labour numbers, NIC activity, site in-charge details.
- Have the fee and security deposit ready (rule 90).
- Record the acknowledgement number and date to track the 45 days.
- Keep a copy of the licence, valid for five years, and diarise renewal.
Need help applying for a contractor licence?
A clean Form XXI, with correct labour numbers and worksite lists, saves delay and later amendment. Our team can help prepare and file the application and track its status. Start with our labour law compliance service.
Key takeaways
- Rule 87 requires licence applications online on the Shram Suvidha Portal in FORM-XXI.
- Rule 88 offers a single licence for more than one State or the whole of India.
- State consultation is deemed complete after thirty days without response.
- The authority must approve or disapprove within forty-five days; otherwise the licence is auto-generated.
- A single licence is valid for five years, and a copy goes to the State Government.
- State rules apply where the State is the appropriate Government.
Read next
- Sections 48 and 49 of the OSH Code: licence procedure and no fees from contract labour
- Rules 89 and 90: licence terms and procedure for issue of licence
- Rules 85 and 86: qualification of contractor and conditions of licence
- How to apply for a contractor licence
Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.