Section 85: Contracting
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 85 — Governs contracting and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) Where any employer in the course of or for the purposes of his trade or business contracts with a contractor for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the…
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (1) Where any employer in the course of or for the purposes of his trade or business contracts with a contractor for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the employer, the employer shall be liable to pay to any employee employed in the execution of the work any compensation, which he would have been liable to pay if that…
- (2) Where the employer is liable to pay compensation under this section, he shall be entitled to be indemnified by the contractor, or any other person from whom the employee could have recovered the compensation and where a contractor who is himself an employer is liable to pay compensation or to indemnify an employer under this section, he shall be entitled to be indemnified by any person standing to him in…
- (3) Nothing in this section shall be construed as preventing an employee from recovering compensation referred to in sub-section (2) from the contractor instead of the employer.
- (4) The provisions of this section shall not apply in any case where the accident occurred elsewhere than on, in or about the premises on which the employer has undertaken or usually undertakes, as the case may be, to execute the work or which are otherwise under his control or management.
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Employer, Employee / worker, Authority / officer
Full statutory text — Section 85
85. Contracting.—(1) Where any employer in the course of or for the purposes of his trade or business
contracts with a contractor for the execution by or under the contractor of the whole or any part of any work
which is ordinarily part of the trade or business of the employer, the employer shall be liable to pay to any
employee employed in the execution of the work any compensation, which he would have been liable to
pay if that employee had been immediately employed by him; and that the amount of compensation shall
be calculated with reference to the wages of the employee under the employer by whom he is immediately
employed.
(2) Where the employer is liable to pay compensation under this section, he shall be entitled to be
indemnified by the contractor, or any other person from whom the employee could have recovered the
compensation and where a contractor who is himself an employer is liable to pay compensation or to
indemnify an employer under this section, he shall be entitled to be indemnified by any person standing to
him in relation of a contractor from whom the employee could have recovered the compensation, and all
questions as to the right to and the amount of any such indemnity shall, in default of agreement, be settled
by the competent authority.
(3) Nothing in this section shall be construed as preventing an employee from recovering compensation
referred to in sub-section (2) from the contractor instead of the employer.
(4) The provisions of this section shall not apply in any case where the accident occurred elsewhere
than on, in or about the premises on which the employer has undertaken or usually undertakes, as the case
may be, to execute the work or which are otherwise under his control or management.How to apply this provision
- Primary statutory test — (1) Where any employer in the course of or for the purposes of his trade or business contracts with a contractor for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the employer, the employer shall be liable to pay to any employee employed in the execution of the work any compensation, which he would have been liable to pay if that…
- Additional operative limb — (2) Where the employer is liable to pay compensation under this section, he shall be entitled to be indemnified by the contractor, or any other person from whom the employee could have recovered the compensation and where a contractor who is himself an employer is liable to pay compensation or to indemnify an employer under this section, he shall be entitled to be indemnified by any person standing to him in…
- Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Authority / officer.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
For a worker/member seeking a benefit connected with contracting, the file should show coverage, service/contribution facts, the rule/scheme and prescribed form, and the calculation/payment. One statutory point to test is: “(1) Where any employer in the course of or for the purposes of his trade or business contracts with a contractor for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the employer, the employer shall”
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 85
What does Section 85 of the Social Security Code cover?
Section 85 — Governs contracting and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) Where any employer in the course of or for the purposes of his trade or business contracts with a contractor for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the…
What is the main legal requirement or power in Section 85?
The first operative clause identified from the official text is: “(1) Where any employer in the course of or for the purposes of his trade or business contracts with a contractor for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the employer, the employer shall be liable to pay to any employee employed in the execution of the work any compensation, which he would have been liable to pay if that…” Read it with the remaining subsections and any proviso below.
Does Section 85 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 85?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 85?
No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.
Is Section 85 currently operative?
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Source & verification trail
Act: Code on Social Security, 2020 — official India Code PDF ↗
Central Rules: Social Security (Central) Rules, 2026 — G.S.R. 344(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.