Contract labour in India operates under a framework that places obligations on both contractor and principal employer. Understanding it prevents the most common and most expensive compliance failures. The Contract Labour (Regulation and Abolition) Act, 1970 requires contractors engaging twenty or more workers to hold a licence, and establishments engaging contract labour to register. The Act also makes the principal employer liable for wages where the contractor defaults. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 requires contribution at 12% from employee and employer each, with additional administrative charges. Establishments must ensure contractor compliance, as recovery can be pursued against the principal employer. The Employees' State Insurance Act, 1948 applies to employees below the wage threshold, with contribution at 0.75% employee and 3.25% employer. ESIC provides medical benefit, and non-coverage of an injured worker creates significant exposure. The Minimum Wages Act, 1948 establishes floor wages that vary by state and skill category, revised periodically. Delhi and Haryana rates differ, which matters for contracts spanning NCR. The Payment of Bonus Act, 1965 requires annual bonus between 8.33% and 20% for eligible employees. The Payment of Gratuity Act, 1972 creates an obligation after five years of continuous service, which affects long-running site deployments. The Maternity Benefit Act and the Sexual Harassment of Women at Workplace Act apply to contract staff as well, with the latter requiring Internal Committee coverage. The Occupational Safety, Health and Working Conditions Code consolidates several of these frameworks, with provisions implemented progressively. For principal employers, the practical control is monthly challan verification with headcount reconciliation. For contractors, it is treating statutory cost as a floor rather than a variable.