Section 57 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.
Section 57 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) prohibits the employment of contract labour in the core activities of an establishment, but allows it in three listed situations. It also sets a process for deciding whether a particular activity is a core activity.
Contract labour cannot be employed in core activities (57(1)). The principal employer may still use a contractor for a core activity if (a) the establishment's normal functioning is such that the activity is ordinarily done through a contractor, (b) the activity does not need full-time workers for the major portion of the working hours in a day or for longer periods, or (c) there is a sudden increase in the volume of work that must be done in a specified time. Disputes on whether something is "core" go to the appropriate Government, which may take advice from a designated authority (57(2)).
Section 57 at a glance
| Provision | Content |
|---|---|
| 57(1) | Notwithstanding anything in this Part, employment of contract labour in core activities of any establishment is prohibited |
| 57(1)(a) proviso | Exception: the activity is ordinarily done through a contractor given the normal functioning of the establishment |
| 57(1)(b) proviso | Exception: the activities do not require full time workers for the major portion of the working hours in a day or for longer periods |
| 57(1)(c) proviso | Exception: sudden increase of volume of work in the core activity to be accomplished in a specified time |
| 57(2)(a) | Government may appoint a designated authority by notification to advise on whether an activity is core |
| 57(2)(b) | An aggrieved party may apply, in the prescribed form and manner, to the appropriate Government for a decision |
| 57(2)(c) | Government may refer the question suo motu or refer the application to the designated authority, which reports within the prescribed period; Government then decides within the prescribed period |
What "core activity" means
Section 57 does not define the term; section 2(1)(p) does. A core activity of an establishment is any activity for which the establishment is set up, including any activity essential or necessary to it. The proviso says that, if the establishment is not set up for such activity, these are not treated as essential or necessary: sanitation works, watch and ward (security), canteen and catering, loading and unloading, civil and constructional works including maintenance, gardening, transport services including ambulance, certain support services (hospitals, training institutions, guest houses, clubs, courier, housekeeping and laundry) where they are in the nature of support services, and any activity of intermittent nature even if it is core. Read our article on the definitions for the wording. The practical point is that the prohibition depends on the activity, not on the contractor's licence: a licensed contractor still cannot supply workers into a core activity unless one of the three exceptions applies.
If you want a second pair of eyes before restructuring a contract or redeploying workers, our labour law compliance team can map your activities against the Code.
The three exceptions
Each exception is a fact test. The principal employer has to be able to show the fact if asked.
(a) Ordinarily done through a contractor. This applies where the normal functioning of the establishment is such that the activity is ordinarily done through a contractor. Evidence would be the history of how the activity has been run.
(b) No full-time need. The activities are such that they do not require full-time workers for the major portion of the working hours in a day or for longer periods, "as the case may be". Part-day or seasonal-type demand fits here. Evidence would be roster and workload records.
(c) Sudden increase in volume. A sudden increase of volume of work in the core activity which needs to be accomplished in a specified time. Evidence would be the order, the deadline and the headcount added.
The exceptions are listed with "or" between (a) and (b) and a separate line for (c), and each is a proviso to the prohibition, so a principal employer needs one of them, not all.
Deciding whether an activity is core: section 57(2)
- Appointment. The appropriate Government may, by notification, appoint a designated authority to advise it on whether an activity is core.
- Application. If a question arises, the aggrieved party may apply to the appropriate Government in the prescribed form and manner.
- Reference. The Government may refer the question on its own, or refer the application to the designated authority, which considers the material or holds an enquiry and reports within the prescribed period.
- Decision. The Government decides the question within the prescribed period.
The Code uses "may" for the appointment of the designated authority, so check whether your appropriate Government has notified one.
What the Central Rules, 2026 prescribe
The Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026) apply where the Central Government is the appropriate Government. Where a State Government is the appropriate Government, the State's rules apply.
Rule 101 (prohibition of employment of contract labour).
- If a question arises whether any activity of an establishment is a core activity, the aggrieved party may apply to the Central Government, which may refer the application to the designated authority notified by it.
- The form of application, manner and time period are as per general or special order of the Central Government issued from time to time.
- Proviso: no adverse action will be taken during the pendency of proceedings, so that the operation of the activity is not affected.
The Central Rules do not list in Rule 101 a form number or a time limit; they refer to orders to be issued. Check for the current order before you apply. See Rules 100–101.
Practical points
- List your activities and tag each as core or non-core with a written reason.
- For every core activity on contract, record which exception (a), (b) or (c) applies and keep the evidence.
- For surge work, keep the order or deadline on file and end the arrangement when the surge ends.
- Raise a dispute early: if you disagree that an activity is core, the section 57(2) application is the route, and Rule 101 protects the activity from adverse action while it is pending.
- Check licences as well: the prohibition is separate from the licensing duties in sections 46–47.
Example. A food unit uses a contractor for loading and cleaning, which it treats as non-core. During a festival order, it also brings in contract workers on the packing line, which it treats as core work, for three weeks to meet a fixed delivery date. It records the order date, quantity and the extra headcount as evidence for the sudden increase in volume exception and ends the contract after delivery. It does not rely on the exception to keep those workers on the line all year.
For the old-law position, see contract labour under the new Labour Codes.
Need help with core activity questions?
Whether an activity is core drives contract structure, cost and risk. Our labour law compliance team can help you classify activities, document the exceptions you rely on and prepare a reference to the appropriate Government where the question is disputed.
Key takeaways
- Contract labour in core activities is prohibited (57(1)).
- Three exceptions: ordinarily done through a contractor; no full-time need; sudden increase in volume.
- Disputes go to the appropriate Government, with advice from a designated authority (57(2)).
- Central Rules: application to the Central Government; no adverse action while pending (Rule 101).
Read next
- Sections 55–56: contractor wages and experience certificate
- Sections 58–59: exemption in emergency and applicability to inter-State migrant workers
- Section 45: applicability of contract labour provisions
- Contract Labour Act, 1970: a guide
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.