Contract labour compliance research and insights
Research and practical guidance on how Indian manufacturing plants manage contract labour compliance under the Labour Codes. Our first planned study will assess 50 plants against one checklist, to show which compliance gaps are common and what closes them.
Featured study
Contract Labour Compliance Gaps in 50 Indian Plants
India's four Labour Codes came into force on 21 November 2025. Contract labour, previously governed by the Contract Labour (Regulation and Abolition) Act, 1970, now falls under the Occupational Safety, Health and Working Conditions Code, 2020, and states are notifying their own rules.
Plants are updating licences, registers, wage records and gate processes at the same time. Individual audits show where one plant slips, but they are rarely compared. This study is designed to assess 50 plants with one method, so the common patterns can be seen.
Research objectives
What the study is designed to answer
Where gaps occur
How many of the 50 plants show a gap in each compliance area examined.
Why they occur
Whether each gap is a documentation, process or system gap, so fixes target the actual cause.
Who is most exposed
How results differ by plant size, sector, state and how contract labour is managed (paper, spreadsheets or software), where group sizes allow.
Readiness for the Labour Codes
How far plants have moved their contractor licences, registers and records onto the new framework.
What good looks like
Which practices are common to plants with the fewest gaps.
A reusable benchmark
A published checklist that any plant can use to score itself on the same basis.
Planned methodology
How the study is designed to run
This is the planned design. It will be finalised before any data is collected, and any change will be disclosed in the published report.
| Element | Planned approach |
|---|---|
| Sample | 50 manufacturing plants in India that engage contract labour through one or more contractors. |
| Recruitment | By invitation and written consent. Open to InOps customers and non-customers; the mix will be reported with the results. |
| Assessment | One structured checklist applied to every plant, covering the compliance areas below, through document review and walkthroughs of the gate and attendance process. |
| Interviews | Short structured interviews with each plant's HR, compliance or security lead, to understand the causes of any gaps. |
| System data | Only where a plant gives specific consent, and only in aggregated, anonymised form. No individual worker data will be published. |
| Scoring | Each checklist item recorded as met, partly met, not met or not applicable, using written definitions shared with every assessor. |
| Review | Legal review of the checklist against the Labour Codes and state rules in force, and independent review of the analysis before publication. |
Privacy and anonymisation
- No plant, company or contractor will be named in any publication.
- Results will be reported only for groups large enough that no single plant can be identified.
- Personal data will be kept to a minimum and handled in line with the Digital Personal Data Protection Act, 2023.
- Participating plants will be able to withdraw before analysis begins.
Limitations and disclosure
- Plants will choose to take part, so the sample will not be random and results will not represent every Indian plant.
- Each assessment will be a snapshot at one point in time.
- InOps sells contract labour management software and services. The method, checklist and limitations will be published so readers can judge the results for themselves.
Compliance areas examined
What each plant will be assessed on
The checklist covers the obligations a principal employer and its contractors carry for contract labour, plus the gate and data controls that support them. Final wording will follow legal review.
Contractor licensing
Whether each contractor that needs a licence holds a valid one, and whether headcount on site stays within the licensed limit.
Establishment registration
Whether the plant's registration is in place and its particulars are up to date under the new framework.
Registers and records
Employee registers, attendance and muster rolls, and wage registers: whether they are complete, current and available for inspection.
Wages
Whether contract workers are paid at least the applicable minimum wage, on time, with wage slips, and whether the principal employer checks this.
PF and ESI
Whether eligible contract workers are enrolled and contributions are remitted, and how the plant checks contractors' challans and returns.
Working hours and overtime
Whether working hours, overtime approval and overtime payment are recorded and match attendance.
Appointment letters
Whether contract workers receive appointment letters from their employer.
Welfare facilities
Whether facilities such as drinking water, toilets, first aid and canteens are provided where contract labour works.
Gate and attendance controls
Whether entry checks such as identity, induction and licence validity run before a worker enters, and whether attendance data is reliable enough for wages and billing.
Findings
What the published report will include
There are no findings yet. When the study is complete and reviewed, the report and its findings will be published on this page. It is planned to include:
Gaps by compliance area
For each area above, how many plants were assessed and how many showed a gap.
Causes
Whether the most common gaps came from missing documents, broken processes or system limits.
Comparisons
Differences by plant size, sector, state and management approach, reported only where groups are large enough.
The checklist and method
The full assessment checklist, scoring definitions and limitations, so the work can be checked and reused.
Want to know when findings are published? Email contact@inops.tech and ask to be notified.
Business implications
Why these areas matter to a principal employer
The study will measure how often gaps occur. Why each area matters does not depend on its results: the principal employer carries responsibilities for contract labour on its site, even though the contractor is the direct employer.
Inspection exposure
Licences, registers and wage records are core documents in a labour inspection, and the principal employer is responsible for its own site.
Wage liability
If a contractor fails to pay wages, the principal employer can be required to pay them and recover the amount from the contractor.
Cost leakage
When attendance, overtime and headcount are not reconciled with contractor invoices, a plant can pay for work that was not done.
Operational and reputational risk
Disputes over wages, hours or welfare can disrupt production and draw attention from customers and auditors.
Recommendations
What plants can do now
These are general preparation steps, not study results. The published report will add recommendations based on its own findings.
Map contractors and licences
List every contractor on site, its licence status and its licensed headcount.
Check headcount daily
Compare people at the gate with each licence limit, not only at month end.
Verify PF and ESI monthly
Ask contractors for challans and returns, and match them to the workers on site.
Move registers to the new framework
Confirm which registers and forms your state now prescribes, and update yours.
Reconcile before paying
Match contractor invoices with verified attendance and approved overtime.
Control the gate
Run identity, induction and licence checks before entry, not after.
To review your own plant now, see the compliance audit service and Iddion RegX contract labour management.
Study stages
How the study will progress
Dates have not been set. Each stage will be announced on this page as it begins.
- 1. DesignChecklist, scoring definitions and legal review
- 2. RecruitmentInvitations and written consent from 50 plants
- 3. FieldworkAssessments and interviews
- 4. Analysis and reviewScoring, aggregation and independent review
- 5. PublicationReport, checklist and findings on this page
Insights
Practical guides from InOps
Guidance for plant HR, compliance and security teams while the study is planned.
Factory gate entry rules for contract workers
The checks that should run before a contract worker walks in.
ContractorsVendor management for contractors in manufacturing
Licences, renewals, headcount caps and performance.
CLMSContract labour management system (CLMS) explained
What a CLMS does and how it differs from an HRMS.
CLMSCLMS vs HRMS
Why manufacturers usually need both, and where each fits.
Buyer's guideLabour management system software guide
What to look for across permanent and contract workforces.
Operations10 signs you've outgrown spreadsheets
When contractor management needs a system.
More articles on the InOps blog.
FAQs
About the study
Has this research been conducted?
Not yet. Contract Labour Compliance Gaps in 50 Indian Plants is a proposed InOps study. No plant data has been collected and no findings have been published.
When will results be published?
No publication date has been set. Findings will be published on this page only after fieldwork, analysis and review are complete. Email contact@inops.tech to be notified.
Which plants can take part?
The study is planned for manufacturing plants in India that engage contract labour through contractors. Inclusion criteria will be published before recruitment opens. Email contact@inops.tech to register interest.
Will participating plants be named?
No. Results will be reported only in aggregate, and only for groups large enough that no single plant can be identified.
Do participants need to use InOps software?
No. The study is planned to include InOps customers and non-customers, and the mix will be reported with the results.
Which laws will the study assess against?
The Labour Codes in force since 21 November 2025, mainly the Occupational Safety, Health and Working Conditions Code, 2020, the Code on Wages, 2019 and the Code on Social Security, 2020, together with the rules in force in each plant's state at the time of assessment.
Register interest in the study
Email us to register your plant's interest in taking part, or to be notified when findings are published.