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CS Professional · Labour Laws and Practice · Industrial and Labour Laws Audit

Medha Logistics, a company, is auditing its contract labour arrangements. It holds a contract labour licence obtained under a Central labour law before the OSH Code, 2020 commenced, and valid for another two years. Which statement is correct under section 119 of the OSH Code, 2020?

Under section 119(5) of the OSH Code, 2020, a licence obtained under a Central labour law before the Code is deemed obtained under the Code and stays valid for the period it was issued, after which it must be obtained afresh.

  1. AThe licence lapses on commencement and must be obtained afresh immediately
  2. BThe licence is deemed obtained under the Code and valid for its issued period, then must be obtained afreshCorrect
  3. CThe licence remains valid permanently without renewal
  4. DThe licence is valid only if the inter-State migrant worker count is nil

Explanation

Section 119(5) deems a pre-Code licence to be obtained under the Code, valid for the period for which it was issued, and it must be obtained afresh after expiry. Immediate lapse is wrong, and permanence is not provided.

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