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Section 46: Prohibition of employment of contract labour in core activities

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

Statutory Mandate
Chapter IX: Contract Labour & Inter-State Migrant Workers
Competent Labour Forum
Act No. 37 of 2020
Section 45 All 143 Sections of OSH Code, 2020 Section 47

Legal Commentary & Landmark Judgments: Section 46

Section 46 of the Occupational Safety, Health and Working Conditions Code, 2020 empowers the appropriate Government to appoint Gazetted Officers as Designated Authorities to administer the licensing framework, work order disclosures, and statutory oversight of contract labour deployment under Chapter XI.

  • Appointment of Gazetted Licensing Authorities: Vests authority in Gazetted Officers appointed by the appropriate Government to act as Designated Authorities with defined territorial, sector, and industrial jurisdiction over contract labour licensing.
  • Digital Single-Window Governance Mandate: Directs Designated Authorities to operate through the unified electronic Shram Suvidha portal, ensuring faceless, transparent, and time-bound processing of contractor license applications and renewals.
  • Quasi-Judicial Regulatory Oversight: Vests the Designated Authority with quasi-judicial powers to scrutinize contractor credentials, assess financial capability, enforce license conditions, and ensure contract worker wage security.
Key Landmark Precedents:
  • Gammon India Ltd. v. Union of India (1974) 4 SCC 396: Constitution Bench affirmed the constitutional validity of appointing statutory licensing authorities under contract labour legislation to prevent worker exploitation and regulate contract employment.
  • Standard-Vacuum Refining Co. of India Ltd. v. Its Workmen AIR 1960 SC 948: Supreme Court underscored that statutory regulation of contract labour through designated authorities is essential to eliminate unfair labour practices and maintain industrial peace.
Courtroom Practice & Strategic Litigation Guidance:

Contractors and principal employers must establish direct digital communication with the competent Designated Authority via the official Shram Suvidha portal. Verify the exact territorial and sector jurisdiction of the designated officer before filing licensing applications to avoid procedural delays or jurisdictional challenges.

Section 45 All 143 Sections of OSH Code, 2020 Section 47