Contractor Compliance Checklist

Reviewed 19 September 2026. The four Labour Codes came into force on 21 November 2025, and Central Rules were notified in May 2026. State rules are still being notified. Thresholds and procedures below reflect the Central position; confirm your state's status before acting. This guide is general information, not legal advice.

Contractor identity and standing

Establish who the contractor legally is before anything else.

PAN and GST registration, where applicableMatch legal name, address and constitution across every document.
Incorporation certificate, partnership deed or proprietorship proof
Authority letter or resolution for the signatory
Udyam (MSME) registration, if the contractor claims itVerify the number on the official portal rather than relying on the certificate copy.
Bank account in the contractor's own nameWages and statutory payments should flow from this account.
Client references and a disclosure of any litigation or blacklisting

Licences and registrations

Confirm the contractor is legally permitted to supply labour at each site.

Contractor licence for contract labourUnder the OSH Code a licence applies to contractors employing 50 or more contract workers. Legacy CLRA licences generally remain valid subject to intimation. Check your state's procedure.
Your own registration or intimation covering contract workers as principal employerConfirm your establishment record lists the contractor and contract workers where required.
EPF establishment code and ESIC employer codeWhere the contractor is covered.
Professional Tax and Labour Welfare Fund registration in the state of work
Shops and Establishments, factory or trade licence where applicable
Inter-state migrant worker provisions, if workers are recruited from another stateThese now sit under the OSH Code.
Licence validity dates recorded, with a renewal alert 60 days ahead

Workforce records

Know exactly who is on site and on whose payroll.

List of workers deployed at each site, with role and skill category
Identity and address proof for every workerKeep consent records where Aadhaar-based verification is used.
UAN and ESIC IP number for every covered worker
Written appointment letter or engagement terms for every worker
Age and fitness records where the work requires them
Attendance, muster roll and overtime records

Wages and statutory payments

This is where audits most often find gaps.

Wage register and payslipsCheck wages meet the applicable minimum or floor wage for the state and skill category.
Proof that wages were paid by bank transfer
Monthly EPF challan and ECR matching the worker listDue by the 15th of the following month.
Monthly ESIC challan matching the worker listDue by the 15th of the following month.
Overtime paid at the applicable rateThe Central OSH Rules provide for overtime at twice the wage rate beyond the daily or weekly limit. Confirm your state's position.
Bonus, leave wages, Professional Tax and Labour Welfare Fund deposits where applicable

Safety, insurance and welfare

Protect workers and protect yourself as principal employer.

Employee's compensation or workmen insurance covering all deployed workers
Group accident or health cover where the contract requires it
Site safety induction records for every worker
PPE issue register
Welfare facilities at site: drinking water, toilets, rest areas, first aidAgree in writing who provides what between principal employer and contractor.

Contract terms

Make compliance a condition of the commercial relationship.

Written agreement with compliance clauses, indemnity and audit rights
Right to withhold payment where statutory proof is missing
Named compliance contact at the contractor
Termination terms, including return of records and worker settlement

Contractor identity and standing

Licences and registrations

Workforce records

Wages and statutory payments

Safety, insurance and welfare

Contract terms

Keep going

Contract Labour Guide (CLRA to OSH Code)

Contractor Onboarding Checklist

Labour Compliance Guide

Track this automatically for every contractor