Sections 51 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 51 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) lets the licensing authority revoke or suspend a contractor's licence for misrepresentation or breach, and lets it amend a licence. Section 52 gives the aggrieved person a 30 day appeal and requires the appellate authority to decide within 30 days.
The authority under section 119(1) may revoke or suspend a licence obtained by misrepresentation or suppression of a material fact, or held by a contractor who has broken the licence conditions or this Part or its rules, but only after giving a show cause opportunity (51(1)). It may also amend a licence, subject to rules (51(2)). Any person aggrieved by an order under section 47, 48 or 51 can appeal within 30 days of communication, and the appeal must be disposed of within 30 days (52).
The two sections at a glance
| Provision | What it says |
|---|---|
| 51(1)(a) | Licence obtained by misrepresentation or suppression of any material fact |
| 51(1)(b) | Holder failed to comply with licence conditions, or contravened this Part or its rules |
| 51(1) (power) | Authority may, after giving the contractor an opportunity of showing cause, revoke or suspend in the prescribed procedure, without prejudice to any other penalty under the Code |
| 51(2) | Subject to rules, the authority may amend a licence |
| 52(1) | Appeal against an order under section 47, 48 or 51 within thirty days of communication, to the appellate authority prescribed under section 119(6) |
| 52(1) proviso | Late appeal may be entertained if sufficient cause prevented timely filing |
| 52(2) | Appellant is heard; appeal is disposed of within thirty days of being preferred |
Section 51: when a licence can go
The "authority referred to in sub-section (1) of section 119" is the authority that issues the common licence; see our article on section 119. It can act on a reference made to it or otherwise, so it does not need a complaint.
Two grounds are listed. The first is about the application: a licence gained by false statements or by hiding a material fact. The second is about conduct after the licence is issued: not following a licence condition, or contravening this Part (Part I of Chapter XI, the contract labour provisions) or its rules. The text says "revoke or suspend", so the authority has a graded choice. Section 51 also says this power is without prejudice to any other penalty the contractor may face under the Code, so a licence action does not replace a prosecution. Penalties are covered in our article on section 94.
Show cause is mandatory
Revocation or suspension can only follow an opportunity of showing cause. A contractor facing action should treat the notice as the main chance to put facts on record. If a notice has already arrived, our legal dispute resolution team can help you prepare the reply and check conditions against what was done on site.
Amendment
Section 51(2) is short: subject to rules, the authority may amend a licence granted under this Part. It does not list reasons. Rule 96 of the Central Rules deals with the procedure (below).
Section 52: the appeal
Section 52(1) allows appeal by "any person aggrieved", not only the contractor, against an order under section 47, section 48 or section 51. Those sections cover the grant, refusal and related licence decisions; see sections 46–47 and sections 48–49.
- Limit: thirty days from the date the order is communicated to the appellant, not from the date on the order.
- Forum: an appellate authority prescribed by the appropriate Government under section 119(6).
- Delay: the appellate authority may still accept the appeal if the appellant was prevented by sufficient cause.
- Hearing and timeline: the appellant must be heard, and the appeal is to be disposed of within thirty days of being preferred.
The text does not say what happens to the order while the appeal is pending. It is silent, so do not assume a stay.
What the Central Rules, 2026 add
The Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026) apply where the Central Government is the appropriate Government. Where a State Government is the appropriate Government, the State's own rules apply.
Rule 95 (revocation and suspension).
- The authority issues a show cause notice of fifteen days, electronically.
- The contractor replies within 15 days of receipt.
- If the authority thinks that continuing the contract business will lead to grave harm to the contract labour, it may pass a speaking order recording reasons for revocation, suspension or otherwise, communicated electronically or by speed post.
- A copy goes to the Chief Labour Commissioner (Central), the concerned Labour Enforcement Officer (Central) and the concerned State authorities.
- If the contractor complies within the stipulated time, the authority revokes the suspension by a speaking order; otherwise the suspension may continue. If the contractor fails to comply with the order, the authority may forthwith revoke the licence, recording reasons.
Rule 96 (amendment). The contractor applies electronically in Form XXI on the Shram Suvidha Portal, uploading the licence, proof of identity and address of the employer. The amended licence is issued immediately, but not later than seven days from a complete application, failing which it is deemed amended and auto-generated. On issue, proportionate security deposit is returned if the number of contract labour falls, and an additional deposit is due if it rises. Fees follow Rule 90(4).
Rule 97 (appeal). The appellate authority under section 52 is to be notified by the Central Government, and the form and fees are to be set by general or special order. Check the current notification before filing. See Rules 95–96 and Rule 97.
Practical points
- Diarise 30 days from receipt of any licence order, and keep proof of the date received.
- Reply to show cause within 15 days under Rule 95 if the Central Rules apply.
- Do not ignore a suspension order: Rule 95 allows forthwith revocation for non-compliance.
- Keep the security deposit in view when headcount changes (Rule 96(6)).
- Principal employers should not let work continue through a contractor whose licence is revoked; see section 54.
Example. A contractor supplies 120 workers but its licence application had understated a material fact. The authority gives a 15 day show cause notice, reads the reply, and passes a speaking order suspending the licence. The contractor corrects the position within the stated time and the suspension is revoked. Had it disagreed with the order, it had 30 days from communication to appeal.
Need help with a contractor licence notice?
A licence notice needs a dated reply and a clean record of conditions. If you have received a show cause notice or an order you want to challenge, our legal dispute resolution team can review the order, the timeline and the grounds for appeal with you.
Key takeaways
- Licence can be revoked or suspended for misrepresentation or breach, only after show cause (51(1)).
- Amendment of a licence is allowed subject to rules (51(2)).
- Appeal lies within 30 days of communication; decision within 30 days (52).
- Central Rules: 15 day show cause, speaking order, Form XXI amendment, appellate authority to be notified (Rules 95–97).
Read next
- Section 50: information regarding work order
- Sections 53–54: welfare by principal employer and employment without licence
- Rules 95–96: revocation, suspension and amendment of licence
- Contract Labour Act, 1970: a guide
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.