Sections 62 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.
Sections 62 to 65 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) close Part II. They direct the appropriate Government to make schemes for ration and construction cess portability, allow a helpline and studies, and extinguish unsettled debts an inter-State migrant worker owes to a contractor or principal employer once the employment ends.
The appropriate Government shall make schemes giving an inter-State migrant worker the option to use the public distribution system in the native or destination State, and portability of construction cess benefits in the destination State (62). It may provide a helpline (63) and studies (64). Section 65 bars any suit or proceeding to recover a debt relating to the worker that remains an unsettled obligation to the contractor or principal employer after the employment is completed, and deems such debt extinguished.
The four sections at a glance
| Section | Nature | Content |
|---|---|---|
| 62(a) | Shall (Government) | Scheme for the option to avail public distribution system benefits in the native State or destination State |
| 62(b) | Shall (Government) | Scheme for portability of the worker's benefits from the building and other construction cess fund in the destination State, for a worker in building or other construction work |
| 63 | May (Government) | Helpline in the manner prescribed |
| 64 | May (Government) | Study of inter-State migrant workers in the manner prescribed |
| 65 | Bar on recovery | No suit or proceeding for recovery of debt; deemed extinguished on completion of employment |
These sections apply where Part II applies; see sections 58–59.
Section 62: ration and cess portability
Section 62 is a duty on the appropriate Government, not on the employer. The word is "shall make schemes". Two schemes are required:
- Public distribution system (PDS). The worker gets an option: to use PDS benefits either in the native State or in the destination State where he works. The text leaves the scheme design to the Government.
- Construction cess portability. For an inter-State migrant worker in building or other construction work, the worker's benefits from the building and other construction cess fund are to be portable to the destination State where he is employed.
For employers this is mostly awareness. It is useful to tell migrant workers that these options exist and to keep records that help them claim, such as the period of work and the site. The employer has no section 62 duty of its own.
If your HR or contractor contracts do not mention migrant workers at all, an employment advisory review can close that gap; see our employment and labour law advisory service.
Section 63: helpline
The appropriate Government may provide a helpline for inter-State migrant workers, in the manner it prescribes. The text says "may", so it is discretionary. The Central Rules set it up: see below.
Section 64: study
The appropriate Government may provide for study of inter-State migrant workers in the manner it prescribes. This is an enabling provision; nothing in it imposes a duty on employers.
Section 65: past liabilities
Section 65 protects the worker from being chased for debts. The text says that no suit or other proceeding shall lie in any court or before any authority for the recovery of debt or any part thereof relating to an inter-State migrant worker after the completion of his employment, where it remains an unsettled obligation to the contractor or the principal employer. On completion of the period of employment, the debt or part is deemed to have been extinguished.
Points to read carefully:
- It covers debt owed to the contractor or principal employer, such as advances, which are a known feature of migrant hiring.
- It applies after completion of employment, so advances recoverable during the employment, through lawful deductions, are not addressed here. Check the wage law rules on deductions.
- It applies to debts that are still an unsettled obligation at that point.
- The effect is a bar on proceedings and a deemed extinguishment, not a right to keep the money already settled.
What the Central Rules, 2026 prescribe
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, use the State's rules.
Rule 103 (helpline). A helpline number is to be provided through general or special order by the Director General, Labour Welfare Organisation of the Ministry of Labour and Employment, to address queries and safety of inter-State migrant workers.
Rule 104 (study). The Central Government may identify the studies to be carried out to promote the safety, health and welfare of inter-State migrant workers, as specified by general or special order. Where required it may consult the State Government or expert organisations.
Rules 103 and 104 do not set out the PDS or cess portability schemes; section 62 leaves those to Government schemes. Section 65 operates by itself. See Rules 103–104.
Practical points
- Tell workers about the PDS option and the helpline at onboarding, and record that you did.
- Keep work records (dates, site, employer) that help a construction worker claim portable cess benefits.
- Review advance recovery policy. At the end of employment, treat unsettled advances as extinguished under section 65 and do not threaten recovery.
- Amend contractor agreements that promise recovery of advances after exit.
- Keep the helpline number on the site notice board if the Government notifies it.
Example. A contractor gave a Bihar worker an advance of Rs. 15,000 and recovered Rs. 9,000 from wages over six months. At the end of the job, Rs. 6,000 is still unsettled. The contractor cannot sue or pursue the recovery, because on the completion of the employment the unsettled part is deemed extinguished. The Rs. 9,000 already recovered is not reopened by section 65.
For the old-law position, see inter-State migrant workers: benefits, allowance and welfare.
Need help with migrant worker contracts?
Worker advances, exit settlements and onboarding notes are where section 65 and the Part II schemes show up in practice. Our employment and labour law advisory team can review your contractor and worker documents and align them with Part II.
Key takeaways
- The Government shall make schemes for PDS choice and construction cess portability (62).
- Helpline (63) and studies (64) are "may" provisions; Rules 103 and 104 supply the Central detail.
- Unsettled debts to a contractor or principal employer are extinguished on completion of employment, and no suit lies (65).
- Employers need to adjust advance-recovery practices, not the schemes.
Read next
- Sections 60–61: facilities and journey allowance for inter-State migrant workers
- Section 66: employment of audio-visual workers
- Rules 103–104: helpline and study of inter-State migrant workers
- Inter-State migrant workers: registration, licensing and compliance
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.