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An establishment which employs 20 or more contract labour, the Contract Labour(Regulation & Abolition)Act becomes applicable. If you intend to employ 20 or more contract labour, first you need to obtain a permission in writing from the local Government Labour officer to employ contract labour. Ensure you engage genuine contractors. Ensure that the contractor has a licence to deploy contract labour if the number of contract labour deployed in your establishment is 20 or more.
While employing contract labour, adhere to sec.10 of the contract Labour (Regulation & abolition) Act.
Regards.
M M Rao