Screening

What to verify before a contract worker starts

Before day one: an Aadhaar-seeded UAN, an ESIC number within ten days, an appointment letter, age proof and a recorded safety induction.

Hi-vis vests and blue safety helmets hanging on hooks in a plant locker room before a shift.

Five things, before the first shift: an Aadhaar-seeded UAN, because EPFO will not accept a provident fund return line without one; an ESIC insurance number, because registration is due within ten days of joining; a letter of appointment, which the OSH Code now requires for every employee; proof of age; and a recorded safety induction. Skip any of them and the gap surfaces in the monthly filings, not at the gate, by which point the site is already liable.

Identity and provident fund: the UAN comes first

A worker without an Aadhaar-seeded Universal Account Number cannot be included in the provident fund return at all. EPFO's circular of 15 June 2021 restricted the Electronic Challan cum Return to members whose Aadhaar was seeded and verified against their UAN, with effect from 1 June 2021, and its order of 1 December 2025 confirmed that from the wage month of November 2025 onwards there would be no exceptions [VERIFY: circular WSU/15(1)2019/ATR/529 dated 15.06.2021 and the order of 01.12.2025, from secondary reports of both].

In practice that means three checks before deployment, not after. Does the worker already hold a UAN from a previous employer? If so it is reused and the new employment linked to it; a second UAN for the same person is a problem to unwind later. If not, the contractor generates one before the first shift. And in either case the name and date of birth on the record must match Aadhaar exactly, because a mismatch fails the seeding and the worker drops out of the ECR silently. The contribution itself is 12% of basic wages plus dearness allowance from each side [VERIFY: rate under the Code on Social Security 2020 and the schemes made under it], and the liability for it starts on day one whether or not the paperwork has caught up.

ESI: ten days, and the clock starts at joining

The employer must register a new employee with the ESIC within ten days of the date of appointment. That is Regulation 10B read with Regulations 11 and 12 of the Employees' State Insurance (General) Regulations 1950 [VERIFY: regulation numbers from secondary summaries; the ESIC circular is a scanned PDF]. Registration after the tenth day still produces an insurance number, but the ESIC issues a show-cause notice with it, and the employer has fifteen days to answer [VERIFY: same source].

Coverage applies to workers earning up to ₹21,000 a month in gross wages [VERIFY: ESI (Central) Rules 1950, r.50, as amended with effect from 1 January 2017], which on most industrial deployments means every contract worker on site. The practical rule is the same as for the UAN: enrol before the worker walks in, and put the insurance number on the gate register next to the name. A worker who is injured in week one without an insurance number is a claim the site and the contractor will argue about for months.

The appointment letter, and the age check

Every employee gets a letter of appointment on joining. Section 6(1)(f) of the Occupational Safety, Health and Working Conditions Code 2020 makes that a duty of the employer, in the form the appropriate government prescribes, and requires one to be issued within three months to any employee who did not already hold one when the Code commenced [VERIFY: clause letter and the three-month provision, from a secondary mirror of the Act]. For contract labour the employer issuing it is the contractor. The site should hold a copy for every worker deployed to it, because the letter is what establishes who the employer is when a dispute arrives.

Age is checked from the same identity document. The Child and Adolescent Labour (Prohibition and Regulation) Act 1986 prohibits employing anyone under fourteen in any occupation, and prohibits adolescents between fourteen and eighteen in the hazardous occupations and processes listed in its Schedule [VERIFY: sections 3 and 3A, and whether the Schedule still cross-refers to the repealed Factories Act 1948 definitions]. Most factory floor, warehouse and logistics roles fall inside that Schedule. A contractor who deploys a seventeen-year-old to a press shop has put the principal employer in breach, and the age on the Aadhaar record is the only defence the site has.

Skill validation and the safety induction

The Code puts the induction on the employer. Section 6(2)(c) requires, for factories, docks, construction and the other listed establishments, the provision of such information, instruction, training and supervision as are necessary to ensure the health and safety of all employees at work [VERIFY: sub-section and clause from a secondary mirror]. Section 6(1)(g) adds that no charge may be levied on an employee for anything done or provided for safety and health at the workplace, which rules out recovering the cost of a helmet or gloves from wages [VERIFY: clause letter]. Section 6(1)(c) requires an annual health examination, free of cost, for the classes of employee the government prescribes [VERIFY: clause letter and the prescribed classes under the OSH Central Rules 2026].

Two records satisfy most of this: a signed induction sheet, dated, listing what was covered, and a PPE issue register showing what each worker was given and when. Skill validation is separate and role-specific. A forklift operator produces a licence; a welder or fitter does a supervised trade test before the first production shift; a picker or packer needs the site's own process walk-through and nothing more. What all of them need is a line in the file that says who validated them and on what date.

The pre-deployment file, per worker

One folder per worker, held by the contractor, with a copy or an index at the site. The table is the checklist we run at the Screening stage before anyone is scheduled.

ItemInstrumentProduced byDueWhat the site should see
Aadhaar-seeded UANEPFO circular of 15 June 2021; order of 1 December 2025 [VERIFY]Contractor (or reused from prior employer)Before first shiftUAN against each name; seeding status verified
ESIC insurance numberESI (General) Regulations 1950, regs 10B, 11, 12 [VERIFY]ContractorWithin 10 days of appointment; in practice before first shiftIP number on the gate register
Letter of appointmentOSH Code 2020, s.6(1)(f) [VERIFY]Contractor as employerOn appointmentCopy per worker
Age proofChild and Adolescent Labour (P&R) Act 1986, ss.3 and 3A [VERIFY]Worker, via Aadhaar or school certificateBefore first shiftDate of birth recorded; nobody under 18 in a Schedule process
Skill validationSite requirement; licence where the role demands oneContractor, witnessed by the siteBefore first production shiftTrade-test or licence record with validator and date
Safety inductionOSH Code 2020, s.6(2)(c) [VERIFY]Site and contractor jointlyBefore first shiftSigned, dated induction sheet
PPE issuedOSH Code 2020, s.6(1)(g): no charge to the worker [VERIFY]Contractor or site per contractBefore first shiftIssue register; no wage deduction

When one of these is missing, the failure shows up in a predictable place. A missing UAN appears as a short line count on the next ECR; a missing insurance number as a gap between the gate register and the ESIC challan; a missing induction as an accident report with no training record behind it. The monthly evidence pack a principal employer should ask for is the same set of documents, one wage period later. Whether a particular gap creates liability for the site, and how much, is a question for the reader's own counsel on the facts.

Sources

Frequently asked questions

Can a contract worker start before their UAN is generated?

They can physically start, but the provident fund liability begins on day one and EPFO will not accept an ECR line for a worker without an Aadhaar-seeded UAN. The result is an unpaid month, arrears with interest, and a worker who cannot see any contribution in their account. Generating or linking the UAN before the first shift removes the problem entirely.

What if the worker already has a UAN from a previous employer?

Reuse it. A UAN is meant to follow the worker across employers; the contractor links the new employment to the existing number rather than creating a fresh one. Two UANs for one person leads to split balances and a merger request later. Ask each worker for their UAN at screening, and verify the Aadhaar seeding status before the first ECR.

Does the ten-day ESIC window mean a worker is uncovered for ten days?

No. ESI coverage and the contribution liability run from the date of joining; the ten days is the deadline for the employer to complete registration. Registering late still produces an insurance number, but the ESIC attaches a show-cause notice. The practical answer is to register before deployment, so the insurance number exists on the worker's first day.

Who issues the appointment letter for contract labour, the contractor or the site?

The contractor, as the employer of record. Section 6(1)(f) of the OSH Code places the duty on the employer, and for contract labour that is the contractor who engaged the worker. The principal employer should hold a copy for every worker deployed to its site, because the letter is the document that establishes the employment relationship if it is ever questioned.