How Long Is a Contract Labour Licence Valid?

The governing rule: five years

Section 47(1) requires every contractor covered by Chapter XI to hold a licence before supplying or engaging contract labour, or executing work through contract labour. Section 48(3) fixes the term: the licence issued for the purposes of Section 47(1) is valid for a period of five years in respect of the number of contract labour specified in it. So for a staffing or manpower firm that meets the prescribed qualifications, one licence covers a five-year window, capped at the headcount written into the licence. Contract labour is now governed by Chapter XI, Part I of the OSH Code after the earlier Contract Labour (Regulation and Abolition) Act, 1970 was subsumed into the Code.

The exception: the work-specific licence

Section 47(2) covers contractors who do not fulfil the requisite qualifications or criteria. The authority may issue a "work specific licence" electronically, renewable within a period the Central Government prescribes. This licence lets the contractor supply or engage contract labour, or execute the work, only for the concerned work order named in the licence and subject to the conditions specified in it. This route is therefore not a five-year, general-purpose licence: it is anchored to a single work order and carries its own renewal cycle set by the rules. The exact renewal period is fixed by the Central Government's rules, so confirm it against the notified rule before you plan around it.

What can shorten or change the validity

Five years is the outer term, not a guarantee. Under Section 51 the designated authority may, after giving you an opportunity to show cause, revoke or suspend the licence if it was obtained by misrepresentation or suppression of a material fact, or if you fail to comply with its conditions or contravene the Code or the rules. Under Section 50, when you receive a work order from an establishment you must intimate the authority within the prescribed time and manner; failure to do so can lead to suspension or cancellation after a show-cause opportunity. If you want to raise the number of contract labour above the figure in the licence, Section 48(3) requires you to apply for an amendment and deposit additional security for the balance period, rather than wait for renewal. An order under Section 47, 48 or 51 can be appealed within thirty days under Section 52.

One state, several states, or all-India

Section 47(3) lets a contractor who wants to operate in more than one State, or across the whole of India, obtain the licence from the authority designated by the Central Government, which consults the relevant State authorities electronically before issuing it. This helps a manpower firm that deploys across state lines run on one licence rather than seeking separate licences state by state. Whether your engagement needs a single-state licence, a multi-state licence, or the work-specific route depends on where you deploy and whether you meet the qualifications, so map this to your actual client footprint.

Who this applies to, and the state overlay

Chapter XI, Part I applies to establishments and manpower-supply contractors connected with contract labour at or above the applicability threshold. The threshold has been widely reported as raised to fifty contract workers under the OSH Code, but the exact figure and several procedural details are set by rules and can vary by State, so treat the number as something to confirm against your State's notified rule rather than a single universal figure. The labour codes came into force on 21 November 2025 and the Central rules were notified on 8 May 2026; State rules and forms follow their own notifications.

Action step

Identify which licence you actually hold or need. If you meet the prescribed qualifications, plan on a five-year cycle capped at your licensed headcount, and diarise an amendment with additional security before you exceed that headcount rather than at renewal. If you do not yet meet the qualifications, expect a work-specific licence tied to each work order with its own renewal period. In both cases, confirm the applicability threshold, the exact forms, the security deposit and the work-specific renewal period against your State's notified rules, and file the Section 50 work-order intimation on time for every engagement.

Last verified, disclaimer and review status

Last verified: 20 September 2026. This page is general information on Indian labour law, not legal advice. Rules, thresholds, forms, fees and renewal windows are set by Central and State notifications and change over time; verify the current position for your State before you act. Reviewed by: pending named legal review.

Key points

• Standard contractor's licence under OSH Code Section 48(3) is valid for five years, for the number of contract labour specified in it.
• The work-specific licence under Section 47(2), for contractors who do not meet the prescribed qualifications, is tied to a single work order and renewable within a period the Central Government prescribes, not a fixed five-year term.
• To raise the licensed headcount, apply for an amendment and deposit additional security for the balance period (Section 48(3)); do not wait for renewal.
• The licence can be revoked or suspended for misrepresentation, breach of conditions, or failure to intimate a work order (Sections 50 and 51); an appeal lies within thirty days (Section 52).
• A multi-state or all-India licence can be obtained from the Central Government's designated authority (Section 47(3)).
• Applicability threshold (reported as fifty contract workers), exact forms, security deposit and the work-specific renewal period are set by rules and can vary by State: confirm against the notified State rule.

Related questions

Check for your state

• The renewal period for the work-specific licence under Section 47(2) is "as prescribed by the Central Government" and is not a fixed value in the source; confirm against the notified Central rule.
• The applicability threshold (widely reported as fifty contract workers) and any State variation must be confirmed against the State's notified rule; it is not a single universal figure.
• Exact form numbers and the per-principal-employer licensing structure vary by State; confirm against the State's notified rules before citing specific forms.
• The security deposit amount and licence conditions (hours of work, wages, amenities) are set by rules and can vary; confirm against the applicable rule.
• The Section 48 renewal procedure and window are set by rules; confirm the State's notified renewal window before planning around expiry.