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

Rajan Industries applied electronically for a common licence covering its factory and its engagement of contract workers under the OSH Code, 2020. The designated authority neither issued the licence nor rejected the application for 50 days after receipt, and no inquiry is pending. During a labour audit, how should the auditor treat the licence status?

The licence is treated as deemed issued and auto generated, because the authority did not act within forty-five days of receiving the application. Under the OSH Code, 2020, no further inquiry may then be made, and responsibility for the delay lies on the authority.

  1. ANot issued; the company must wait for the authority to act
  2. BDeemed issued and auto generated, and no further inquiry can be madeCorrect
  3. CDeemed rejected, so the company should appeal within 30 days
  4. DDeemed issued only after a further 45 days elapse

Explanation

Section 119(4) requires issue of the licence electronically within forty-five days of receipt, failing which it is deemed issued and auto generated, with responsibility for the failure on the authority. The proviso bars any further inquiry. Silence is not treated as rejection, so an appeal is not the route.

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