Section 48: Procedure for grant and renewal of licence

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

Legal Commentary & Landmark Judgments: Section 48

Section 48 of the Occupational Safety, Health and Working Conditions Code, 2020 regulates the electronic application procedure, statutory security deposits, and deemed approval timelines for the issuance or renewal of contractor licenses, establishing a thirty-day turnaround guarantee.

  • Unified Electronic Application Procedure: Contractors must apply electronically through Form IX on the Shram Suvidha portal, accompanied by a certificate of engagement from the principal employer, proof of identity, and prescribed security deposit challans.
  • Statutory Deemed Approval Guarantee: Explicitly incorporates a deemed licensing mechanism: if the Designated Authority fails to issue the license or issue a deficiency query within the prescribed period (ordinarily thirty days), the license is deemed granted automatically by operation of law.
  • Multi-Year Validity & Renewal Framework: Licenses are granted for the period of the contract work order (up to a maximum of five years); renewal applications must be submitted electronically at least thirty days prior to expiry.
Key Landmark Precedents:
  • State of U.P. v. Babu Ram Upadhya AIR 1961 SC 751: Supreme Court affirmed that procedural statutory timelines designed to prevent bureaucratic delays and secure commercial rights have binding legal force.
  • Gammon India Ltd. v. Union of India (1974) 4 SCC 396: Supreme Court held that prescribing procedural licensing standards and security deposits ensures financial responsibility and guarantees payment of worker wages in case of contractor default.
Courtroom Practice & Strategic Litigation Guidance:

Staffing agencies and contractors must prepare their digital application dossiers forty-five days prior to project mobilization. Upload verified principal employer certificates and security deposit receipts. If no response is received within thirty days, formally assert deemed approval status under Section 48(2) via registered electronic communication to the licensing authority.