The Contract Labour (Regulation and Abolition) Act, 1970 (“CLRA“) and twelve (12) other labour laws are incorporated into the Occupation, Safety, Health and Working Conditions Code, 2020 (“OSH Code“), which has fundamentally altered contract labour management by placing primary employers at the centre of compliance and assigning responsibility for the welfare, safety, and working conditions of contract labour. OSH Code establishes a single, uniform threshold of fifty (50) or more contract labourers for the application of codes pertaining to contract labour, both for contractors and principal employers. One of the many significant modifications introduced by OSH Code is that it now forbids industrial establishments from using contract labour for their core or essential business operations. From that view, it can be concluded that contract labour cannot be treated like permanent employees of industrial establishments being the principal employer. Conduct annual internal audits of all contract labour arrangements, checking for indicators of sham contracts and verifying compliance with licensing, wage, and welfare provisions.