Contract labour, the labour of workers whose freedom is restricted by the terms of a contractual relation and by laws that make such arrangements permissible and enforceable. The essence of the contract labourer’s obligation is his surrender for a specified period of the freedom to quit his work and his employer. Other stipulations cover such matters as repayment of the costs of transportation, housing, training, and other expenses.

Contract labour has been based upon conditions of poverty and upon political and religious intolerance, and it is often expressed in penal codes. Historically, deception, kidnapping, and coercion have been used to obtain contract labourers, with contractual terms often reflecting the disadvantageous position of the labourer. Contract labour still carries implications of compulsion and unfairness, and conditions can approach slavery in their severity.