Section 123: Power of Central Government to give directions

The Occupational Safety, Health and Working Conditions Code, 2020 (Act No. 37 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter XIV: Miscellaneous
Competent Labour Forum
Act No. 37 of 2020

Legal Commentary & Landmark Judgments: Section 123

Section 123 of the Code empowers the Central Government to give binding policy and executive directions to State Governments and regulatory authorities for the effective implementation of the Code.

  • Sovereign Central Directive Power: Authorizes the Central Government to issue binding directions to State Governments, Chief Inspectors, and Advisory Boards to ensure uniform national safety standards.
  • Harmonization of Interstate Safety Protocols: Prevents regulatory race-to-the-bottom dynamics between competing industrial States by mandating national minimum compliance baselines.
  • Mandatory Statutory Compliance by States: Provides that State administrations are under an affirmative statutory obligation under Article 256/257 of the Constitution to implement all Central directions.
Key Landmark Precedents:
  • State of Rajasthan v. Union of India (1977) 3 SCC 592: Supreme Court affirmed the constitutional supremacy of Central statutory directions issued to State Governments in matters within concurrent legislative competence.
  • In Re: Problems and Miseries of Migrant Labourers (2021) SCC OnLine SC 422: Apex Court directed the Union Government to issue binding national policy directives to ensure standardized interstate migrant welfare across all States.
  • National Campaign Committee for CL v. Union of India (2018) 5 SCC 434: Supreme Court directed Central authorities to issue peremptory instructions to defaulting State boards regarding welfare fund disbursement.
Courtroom Practice & Strategic Litigation Guidance:

Multi-state conglomerates must track Central Ministry of Labour directives, as national policy circulars issued under Section 123 immediately supersede conflicting or lagged state-level executive orders.