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Section 64: Prohibition of recruitment without 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
Section 63 All 143 Sections of OSH Code, 2020 Section 65

Legal Commentary & Landmark Judgments: Section 64

Section 64 of the Code strictly prohibits any person or contractor from recruiting, employing, or engaging any inter-State migrant worker without obtaining a valid license under Chapter XI of the Code.

  • Absolute Prohibition on Unlicensed Recruitment: Imposes a strict statutory prohibition against engaging in inter-State labor recruitment or contracting without holding an active, unencumbered license issued by the licensing authority.
  • Dual Liability on Recruiter & Host Employer: Creates concurrent culpability for both the unlicensed recruitment agent and the host industrial establishment that accepts workers sourced through an unauthorized contractor.
  • Criminal Penalties for Unauthorized Contracting: Subjects offenders to prosecution under Section 84 and Section 90, exposing corporate directors to substantial fines and repeat-offense imprisonment.
Key Landmark Precedents:
  • Steel Authority of India Ltd. v. National Union Waterfront Workers (2001) 7 SCC 1: Constitution Bench affirmed that engaging contract labour through an unlicensed contractor constitutes a statutory violation punishable under penal provisions of the enactment.
  • Gammon India Ltd. v. Union of India (1974) 4 SCC 396: Supreme Court upheld mandatory licensing of labor contractors as an indispensable measure to eliminate exploitative fly-by-night labor middlemen.
  • Dena Nath v. National Fertilisers Ltd. (1992) 1 SCC 695: Supreme Court held that non-compliance with licensing requirements exposes management to statutory penalties, although it does not automatically absorb workers into regular employment.
Courtroom Practice & Strategic Litigation Guidance:

Gate security and HR onboarding software must enforce a digital license verification gate: no vendor may generate contractor gate passes unless their valid OSH labor license number and validity dates are verified on the national labor portal.

Section 63 All 143 Sections of OSH Code, 2020 Section 65