Section 119 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 119 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) lets one person apply for a single combined licence instead of separate licences. It covers a factory, industrial premises for beedi and cigar work, and the engagement of contract workers, in any combination. It also fixes a 45-day deadline with deemed issue, saves old licences and gives a 30-day appeal.
A person who wants a common licence for a factory, beedi and cigar premises and contract labour (or any combination, or a single licence for any one) applies electronically or otherwise to the authority designated by the appropriate Government. The authority must issue the licence electronically within 45 days, failing which it is deemed issued and auto-generated, and no further inquiry may be made. A rejection must state reasons. An appeal lies within 30 days, and must be disposed of within 30 days.
Section 119 at a glance
| Sub-section | What it says |
|---|---|
| (1) | Application for a common licence (or a single licence for any one) to the designated authority, "notwithstanding anything contained in this Code" |
| (2) | Form, manner, fee and information prescribed by the appropriate Government; for contract labour, the number of inter-State migrant workers employed must be stated |
| (3) | Actions and inquiry after receipt, as prescribed by the appropriate Government |
| (4) | Electronic issue within 45 days; deemed issue and auto-generation if not; no further inquiry; licence form similar across India; reasons for rejection |
| (5) | Licences obtained under any Central labour law before the Code are deemed obtained under the Code, valid till expiry, then to be obtained afresh |
| (6) | Appeal within 30 days; disposal electronically within 30 days |
Which licences can be combined
Section 119(1) names three things: a factory, industrial premises for beedi and cigar work, and engaging contract workers. A person may seek one common licence for all three, for any two, or a single licence for any one of them. The underlying licensing provisions sit elsewhere in the Code. A factory is licensed under section 79 (see section 79), industrial premises for beedi and cigar work under section 74 (see sections 74 and 75), and contractors under sections 47 and 48 (see sections 46 and 47). Section 119 adds a common door and a common clock on top of those provisions.
The application goes to "such authority as may be designated, by notification, by the appropriate Government". Whether the Central or a State Government designates the authority depends on who is the appropriate Government for your establishment. If you run a business that has both a plant and contractors, our labour law compliance team can map which authority and which rules apply to you.
The application: sub-sections (2) and (3)
The application must be in the form, manner and with the fee and information that the appropriate Government prescribes. One content requirement is fixed by the Code itself: where the application relates to a licence for engaging contract labour, it must contain the number of inter-State migrant workers employed.
After receipt, the authority takes such actions and makes such inquiry, in such manner, as the appropriate Government prescribes. The Code does not list the inquiry steps; they are left to rules.
Under the Central Rules, 2026, Form XXI is headed "Application for Grant of Licence/ Renewal of Licence/Amendment of Licence (including common/single licence)", and it has parts for establishments for which a common licence is required. Rule 87 says contractor applications are made on-line through the Shram Suvidha Portal in Form XXI, and rule 88 covers a single licence across more than one State or the whole of India. These Rules apply where the Central Government is the appropriate Government; where the State Government is, read the State's own OSH rules for the form and fee.
The 45-day clock: sub-section (4)
When the authority is satisfied, it must issue the licence electronically within forty-five days of the receipt of application. If it does not, "the licence shall be deemed to be issued and shall be auto generated and the responsibility of such failure shall be on such authority".
Three provisos follow:
- Where the licence is deemed issued, no further inquiry shall be made.
- The form of licence shall, as far as practicable, be similar throughout India.
- Where the authority rejects the application, it shall assign the reason for rejection.
What this means for you. Keep the acknowledgement that shows the date of a complete application. The 45 days run from receipt of the application. Deemed issue is a statutory outcome, not a favour, and the failure is the authority's responsibility. Note that the Code says the time runs from receipt; it does not say what happens if the application is incomplete, so file complete papers and fees to avoid argument.
Old licences: sub-section (5)
Any licence for a factory, industrial premises for beedi and cigar work or contract labour that was obtained under any Central labour law before the commencement of this Code is deemed to have been obtained under the Code. It remains valid for the period for which it was issued, and must be obtained afresh after its expiration. So an existing contractor licence under the Contract Labour (Regulation and Abolition) Act, 1970 continues until its expiry date; the next licence must be under the Code. For the repealed Acts see our commencement and repeal article and our note on contract labour under the new Labour Codes.
Appeal: sub-section (6)
Any person aggrieved by an order under section 119 may file an appeal within thirty days from the date of the order, in the form and with the fee prescribed to the appellate authority prescribed by the appropriate Government. The appeal "shall be disposed of electronically within thirty days of the filing of the appeal". Unlike section 4, this sub-section has no proviso for late filing, so count the thirty days from the date of the order.
Example 1. A manufacturer with a plant also engages a housekeeping contractor's workers. It applies on the designated portal for a common licence. On day 46 nothing has been issued. The licence is deemed issued and auto-generated; the authority cannot begin a fresh inquiry.
Example 2. A licence application is rejected without a reason. Section 119(4) third proviso requires the authority to assign the reason. The applicant can cite the defect in an appeal filed within 30 days of the order.
Need help with combined licensing?
If you run a factory, use contractors and are unsure which licence, fee and portal apply, our labour law compliance team can review your set-up, prepare the application papers and track the deemed-issue date for you.
Key takeaways
- Section 119 allows one combined application for a factory, beedi and cigar premises and contract labour licences, or a single licence for any one.
- The authority must issue the licence electronically within 45 days; otherwise it is deemed issued and no further inquiry can be made.
- Rejection must carry reasons, and the licence form is to be as similar as practicable across India.
- Pre-Code Central licences are deemed obtained under the Code until their expiry, then must be obtained afresh.
- An appeal lies within 30 days of the order and must be decided within 30 days.
Read next
- Sections 74 and 75: licence for industrial premises and appeals
- Section 79: approval and licensing of factories
- Sections 48 and 49: licence procedure and no fees from contract labour
- Shram Suvidha Portal: contract labour registration online
Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.