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

While auditing Bharat Logistics Pvt Ltd, a Company Secretary finds that its contractor licence was obtained under a Central labour law before the Occupational Safety, Health and Working Conditions Code, 2020 commenced. What is the correct audit conclusion about this licence?

The licence is treated as deemed obtained under the Code and stays valid for the period for which it was issued. After that period expires, the contractor must obtain a fresh licence. It is neither invalid at once nor valid indefinitely.

  1. AIt is invalid and must be obtained afresh immediately
  2. BIt is deemed obtained under the Code, valid for the period for which it was issued, and must be obtained afresh after expiryCorrect
  3. CIt remains valid permanently without renewal
  4. DIt is valid only if the establishment applies for deemed approval within forty-five days

Explanation

Section 119(5) of the OSH Code provides that a licence for a factory, beedi and cigar premises or for engaging contract labour obtained under a Central labour law before commencement is deemed obtained under the Code. It stays valid for its issued period and must be obtained afresh after expiry. The forty-five day period relates to issuing new licences, not to saving old ones.

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