The practice of employing contract labour through contractors and other agencies is prevalent across nations and industries in different occupations including skilled, semi-skilled and unskilled work. Today it has become a global phenomenon, and looking into the market driven economy, organisations has to hire short term or temporary skilled or unskilled manpower to address occasional upsurge in demand. Employer have to guard and check against double fraud by the contractor at the cost of the poor contract workers and also ensure that the prescribed social security and other benefits are extended to the contract worker. In case of non-compliance employer will be held responsible for the benefits payable to contract labour.