#bocw act 1996

[omconsultants]

Registration Under the Building and Other Construction Workers (BOCW) Act, 1996

The Building and Other Construction Workers (BOCW) Act, 1996, is a vital piece of legislation designed to improve the working conditions and welfare of construction workers in India. It seeks to provide a framework for their safety, health, and well-being while ensuring fair treatment and access to essential benefits. One of the core components of this law is the mandatory registration process for employers and workers. This blog delves into the key aspects of the BOCW Act, focusing on its registration requirements, benefits, and compliance process.

1. Introduction to the BOCW Act

The BOCW Act was enacted to regulate the employment and working conditions of construction workers, a largely unorganized sector in India. It aims to:

Improve workers' safety and health standards.

Provide welfare measures like pensions, insurance, and education assistance.

Promote fair practices among employers in the construction industry.

2. Who Needs to Register Under the Act?

Employers

All establishments employing ten or more workers in construction, building, or related activities must register under the BOCW Act. This includes:

Builders and contractors.

Government construction agencies.

Companies involved in large-scale building projects.

Workers

Construction workers, including masons, carpenters, electricians, and laborers, are eligible to register for benefits under the Act.

3. Objectives of Registration Under the BOCW Act

The primary objectives of registration are:

To bring transparency and accountability in worker welfare schemes.

To ensure compliance with safety regulations on construction sites.

To create a centralized database for monitoring worker benefits and employer obligations.

4. Registration Process for Employers

Eligibility Criteria

Employers must register if:

Their establishment engages in construction activities.

They employ 10 or more workers on any given day during the preceding year.

Required Documents

Proof of establishment (e.g., incorporation certificate, partnership deed).

Details of construction projects.

List of employees and their roles.

Proof of payment of the registration fee (varies by state).

Step-by-Step Guide

Application Submission: File the registration application in Form I with the State Labour Department or designated authority.

Fee Payment: Pay the registration fee, which depends on the scale of the project or establishment.

Verification: The authorities verify the details provided and may inspect the establishment.

Registration Certificate: Upon approval, a registration certificate is issued within 30 days.

5. Registration of Workers

Eligibility and Documents

Workers must meet the following criteria:

Age between 18 and 60 years.

Engaged in construction work for at least 90 days in the past year.

Required Documents:

Proof of age (Aadhaar, PAN, voter ID).

Proof of employment (employer certification or self-declaration).

Proof of residence.

Process for Individual Workers

Application Submission: Submit a registration form to the local labor office or welfare board.

Verification: The application is reviewed, and supporting documents are verified.

ID Card Issuance: A worker registration card is provided, granting access to benefits.

6. Benefits of Registration

Social Welfare Schemes

Pension schemes for retired workers.

Education assistance for workers’ children.

Financial Assistance

Compensation for accidents or injuries at work.

Maternity benefits for female workers.

Housing loans or subsidies.

Health and Safety Provisions

Access to free medical check-ups.

Implementation of safety protocols on construction sites.

7. Compliance and Penalties

Compliance is crucial under the BOCW Act, as non-registration or violation of the Act can lead to:

Fines ranging from ₹2,000 to ₹50,000.

Potential closure of projects for severe non-compliance.

Employers are also required to maintain proper records and submit periodic returns to the relevant authorities.

8. Challenges in Implementation

While the BOCW Act is comprehensive, its execution faces several challenges:

Lack of Awareness: Many workers and employers are unaware of the registration process or benefits.

Administrative Delays: Registration can be time-consuming due to bureaucratic inefficiencies.

Fragmentation of the Sector: The unorganized nature of construction work makes it difficult to track and register workers.

9. FAQs About BOCW Registration

Is registration mandatory for all construction companies?

Yes, all construction establishments employing 10 or more workers must register.

Can migrant workers register under the BOCW Act?

Yes, migrant workers are eligible if they meet the employment criteria.

What is the validity of worker registration?

The registration card is typically valid for one year and must be renewed annually.

Are small contractors required to register?

Small contractors employing fewer than 10 workers are exempt but may still voluntarily register workers for welfare benefits.

10. Conclusion

The BOCW Act, 1996, provides a robust framework for protecting and empowering construction workers. Registration under the Act is not only a legal requirement but also a pathway to significant social and financial benefits. For employers, it ensures compliance and fosters a healthier working environment, while for workers, it serves as a safety net against the inherent risks of their profession.

By streamlining the registration process and raising awareness, India can achieve a more inclusive and equitable construction sector that prioritizes worker welfare. Whether you’re an employer or a worker, understanding the importance of registration under the BOCW Act is the first step towards harnessing its full potential.

[deepaksingh97]

Understand the BOCW Act 1996, Contract Labour Regulation, and Factories Act with Corpbiz. Learn about BOCW schemes, compliance, and the BOCW registration process to meet legal requirements for construction workers' welfare. Watch now for expert guidance!

[newsoutbursts]

Construction workers concerned over move to repeal welfare act

Construction workers concerned over move to repeal welfare act

The Central Government’s proposed move to repeal 15 existing laws on social security, including the Building and Other Construction Workers Act 1996 (BOCW), and replace them with a single Labour Code on Social Security and Welfare, has led to much concern among construction workers.

Kerala was the first State to set up a welfare board for construction workers in 1989, becoming a model for the…

[monicasharmalove]

UP Governor gives nod to labour law changes; President to take a final call

Uttar Pradesh Governor Anandiben Patel has approved an Ordinance exempting companies from almost all labour laws in the state for a period of three years, a top official said on Thursday.

The ball is in the court of the central government now as the Ordinance has been sent to President Ram Nath Kovind whose approval is required for the new law to come into effect. Kovind will seek the opinion of the Union home and labour ministries before taking a decision on the draft Ordinance. Since labour is a concurrent subject under the Constitution of India, states can frame their own laws but need the approval of the Centre for making amendments to central laws.

A senior UP government said that the Ordinance will apply to “old units hiring new workers and all the new units, both dealing with manufacturing process.”

“The UP governor has approved the Ordinance as proposed by the state Cabinet. It has now been sent to the central government for approval,” the official said, requesting anonymity. The UP government has said that through the labour law changes, it wants to attract investment in the state, especially since it saw influx of workers coming back from other states during the national lockdown.

The Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020, proposes that all factories and establishments engaged in manufacturing process will be exempt from “the operation of all labour laws for a period of three years”, provided they fulfill certain conditions.

These conditions are that workers get paid the minimum wages and the salary has to be deposited on time in their bank accounts, not through cash. The provision of Factories Act, 1948 and Building and Other Construction Workers (BoCW) Act, 1996 relating to safety and security of workers, shall remain applicable. None of the provisions related to women and children and compensation to workers in case of accidents will be done away with along with a continued ban on bonded labour.

However, laws related to settling industrial disputes, and those related to trade unions, contract workers, and migrant labourers will cease of exist. Employers won’t be required to comply with welfare provisions in the Factories Act, related to cleanliness, disposal of waste, lighting, drinking water, urinals, canteens, rest rooms, crèches, and wages during the leave period, among others. Construction firms won’t be required to contribute towards a welfare fund for construction workers.

[gouracademy]

Top current affairs of 22 October 2019

Top current affairs of 22 October 2019

Top Current Affairs of 22 October 2019: Instantly get Latest Current Affairs with all essential information, Be the first to understand all the Nowadays Top Current Affairs of 22 October 2019 such as High News, Major Problems, Current News, Important Events in National Current Newsin addition as International level with clear explanation. For all competitive Exams and Interviews, equip yourself…

[mahalaxmitraders-blog]

Safety Helmet: Construction Safety Helmet is a head protective equipment it can also be termed as Hard Hats, these consists of different layers, which helps in protecting the skull part of our body from any kind of injury. The sole purpose of using Safety Helmets is that it protects users head part from all the risks possible at Industrial Works or Construction Works. Importance of Safety Helmets cannot be ignored according to The BOCW Act, 1996 that applies to the construction industry; it is necessary to provide welfare and safety to the workers and employees. Construction Safety Helmet is a must needed Personal Protective Equipment required at workplace. Construction sites and other Industrial Works are accident prone and for so many lifting, building, machine operating taking place at one place; it becomes important to wear a protective helmet.

While working in Industries or working at Construction Sites, there are injuries that can be caused by fall of any materials/objects from above, collision with fixed objects at work place, electrical shocks or burns. Ignoring such dangerous outcomes, can surely increase the risk of life at work place; including it may also make the workforce insecure about their own personal safety. Safety Helmets are designed to protect our head from all such risks or injuries. It is one of the most basic and essential personal protective equipment required in the Construction Industry. Construction Safety Helmets include different layers, where each of them has their own function to protect the users head. Protective layers of Helmet:

Shell: This shell is the outer part of the helmet which is usually made of a polyethylene. This polyethylene layer helps in reducing the force of an object impacting with helmet and protects the head.

Harness: Harness is also made of polyethylene; these are in form of strips inside the helmet just below the shell. Harness acts a space between helmets shell and the head, it absorbs the energy caused by an impact on shell and spread these forces equally throughout the head, thus reducing the overall impact on head. It acts as a Shock Absorber.

Head band: Head bands in Safety Helmets helps in proper adjustment of helmet on the users head. It helps Shell and Harness to work together a provide complete protection to users head.

Why Mahalaxmi Traders?

Mahalaxmi Traders is a leading supplier of Safety Helmets; we are renowned for supplying best quality Construction Safety Helmets at best price for our customers. With a supply capacity of 50,000 Safety helmets per month, we maintain proper stocks and fulfill the needs of our clients. With an experience of 12+ years in the industry, we are renowned as a leading supplier of Safety Equipment, Scaffolding Accessories, Form work Accessories, and Power Tool Blades. By serving in these 4 Industries we supply more than 499+ Products and fulfill all Construction requirements of our clients.

[gethealthy18-blog]

Harvard Grad Uses Data To Bring Govt Help To 50 Lakh Indians!

New Post has been published on https://healingawerness.com/getting-healthy/getting-healthy-women/harvard-grad-uses-data-to-bring-govt-help-to-50-lakh-indians/

Harvard Grad Uses Data To Bring Govt Help To 50 Lakh Indians!

Chaitra Krishnan Hyderabd040-395603080 August 6, 2019

The intensity of competition that we face in life is at its peak today. Students struggle to find time to play and get involved in extracurricular activities because their preparation for ten different college entrance examinations start from as early as primary school. We’re all in the race like horses with blinkers on. Nobody cares about what’s happening around and the ultimate goal is to keep moving forward in the race. Humanity is lost in such a society that doesn’t have time to help others as we progress. Fortunately, there are a few people who stand out in this “ultra-focused” society. Harvard grad Rwitwika Bhattacharya is one among them and we’re glad that our country’s youth has gems like her who would choose a meaningful life over an extremely well-paid career.

In 2012, Rwitwika Bhattacharya bid her goodbyes to the World Bank, making a clear choice between corporate consulting and starting her public venture in India. The postgraduate from the prestigious Harvard Kennedy School set up the Swaniti Initiative, an enterprise that aimed at delivering social service to the public by working closely with their elected representatives. Want to know more about Rwitwika and her initiative? Read on.

Problems She Focused On

Source: Twitter

Rwitwika’s initiative focused on the discrepancies in implementing government laws and policies thereby benefiting over 50 lakh people in 17 states. The data-driven program mobilized around 100 crores of underutilized government funds over the past few years. An initiative like Swaniti can make a huge change in India because it’s due to the failure of proper utilization of public funds that our country is sinking down in corruption.

Let’s explain this with an example. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, and the BOCW Welfare Cess Act, 1996 are two acts that promise construction workers aid. The benefits include health insurance, life insurance, and basic housing to the workers. However, according to the records, only 35% of the funds allotted have been utilized in the past 22 years. This means that around Rs 28,000 crore is just lying there unused (at least not by the public). Poor data management and tracking is the main reason why such instances occur.

For large scale and elite government programs like Beti Bachao, Beti Padhao or Swachh Bharat, these tracks are usually managed by a district magistrate. However, there are hundreds of other government programs that do not get this kind of tracking and management. By streamlining the data associated with these schemes, we can make sure that the funds are being utilized in the right way. And in many parts of our country, the public offices are understaffed and don’t have a proper support system to collect and maintain huge chunks of data. This is what has to be changed. Keeping up with the data and tracking it, when it comes to government schemes, funds, and implementation will help in uprooting corruption.

“So if the very fundamentals of how much money is coming in, where it’s going, how much is being spent, etc. isn’t closely tracked on the ground at say the village level, then preventing corruption becomes impossible. Having worked with state and district administrations, this is something we have noticed,” says Rwitwika in an interview with an online portal.

Finding Solutions

Source: Twitter

Rwitwika couldn’t have put her plan to action without the help of politicians. “My experience at the World Bank was great, but I wanted to do more. My father, Ranjan Bhattacharya, was active in politics, so I grew up seeing and meeting MPs. Thus, it made sense to reach out to them. I wanted to see how they were doing, what development in their constituency looked like,” she said. Even though the MPs do not work on implementing schemes to the ground level, their help made it easier for Swaniti to connect to the communities.

The first step is to find data about the community if it is available at a district level. In case the data isn’t available, it is collected from scratch. This data includes information regarding the demography of the community, the major issues faced by them, and what the government is doing to help them. In Uttarakhand, Rwitwika’s initiative found that a huge number of men were unemployed and seeking jobs outside the state. When the situation was studied at a closer level, it was found that there were State-funded programs to build public infrastructure like roads and parks within the community. Also, there was around 70 lakhs that was alotted for these programs that wasn’t used. So, Swaniti took the initiative of deploying these funds and getting youth jobs.

Earlier this year, Rwitwika’s initiative launched “Jaano India,” an online platform to collect data regarding district constituencies and their MPs. This platform helps the citizen and the public servants to track the progress of their community at the district level.

We’re so glad that people like Rwitwika who empower others using their own power are among us. Did this story inspire you? If given a chance, what change would you like to bring into the system? Let us know in the comments below.

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Source: https://www.stylecraze.com/trending/harvard-grad-uses-data-to-bring-govt-help/

[postolo]

‘Symbolic justice’ for construction workers as Supreme Court issues various directions for their welfare

Supreme Court:

“Construction workers do not assist only in building infrastructure, but they also assist in building the nation, in their own small way.”

After it was brought to the notice of the bench of Madan B. Lokur and Deepak Gupta, JJ that under the Building and Other Construction Workers‘ Welfare Cess Act, 1996, more than Rs. 37,400 crores have been collected for the benefit of construction workers, but only about Rs. 9500 crores have been utilized ostensibly for their benefit, the Bench issued various directions after stating:

“No State Government and no Union Territory Administration (UTA) seems willing to fully adhere to and abide by (or is perhaps even capable of fully adhering to and abiding by) two  laws solemnly enacted by Parliament, namely, the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (the BOCW Act) and the Building and Other Construction Workers‘ Welfare Cess Act, 1996 (the Cess Act).”

The Court, hence, asked the Ministry of Labour and Employment, the State Governments and the UTAs to:

put in place and strengthen the registration machinery, both for the registration of establishments as well as registration of construction workers at the earliest.

establish and strengthen the machinery for the collection of cess.

frame one composite Model Scheme for the benefit of construction workers in consultation with all stakeholders including NGOs who are actually working at the grassroots level with construction workers. The scheme should include within it, inter alia, issues and concerns of education, health, social security, old age and disability pension and other benefits that are necessary for living a life of dignity as postulated by the Constitution of India.

conduct a social audit on the implementation of the BOCW Act so that in future there is better and more effective and meaningful implementation of the BOCW Act.

The Court also issued certain general directions for the implementation of the BOCW Act:

Every State Government and UTA shall constitute a State Advisory Committee, if not already constituted.

Every State Government and UTA shall constitute an Expert Committee and frame statutory Rules under Section 62 of the BOCW Act, if such statutory Rules have not already been framed.

The State Governments and UTAs must appoint Registering Officers for registration of establishments and construction workers.

Every State Government and UTA should establish a Welfare Board in terms of Section 18 of the BOCW Act. It must be appreciated that this is not a body that can be created by an executive order. The law requires that the Welfare Board shall be a body corporate having perpetual succession and a common seal.

Every State Government and UTA should establish a Welfare Fund for the benefit of the construction workers, with appropriate rules for utilisation of the funds.

all construction workers should be given identity cards and should be registered in terms of Section 12 of the BOCW Act.

The Ministry of Labour and Employment shall actively consider

making available to the construction workers the benefits of The Maternity Benefit Act, 1961 and The Minimum Wages Act, 1948, The Employees‘ State Insurance Act, 1948, the Employees‘ Provident Funds and Miscellaneous Provisions Act, 1952, as well as (to the extent possible) the Mahatma Gandhi National Rural Employment Guarantee Act, 2005.

The Ministry of Labour and Employment should also consider whether projects of the Government of India in the railways, defence and other establishments are brought within the purview of the BOCW Act.

The Monitoring Committee which has had quite a few meetings so far should pro-actively ensure full compliance of the provisions of the BOCW Act, the Cess Act and the directions issued by this Court.

The Court asked the Union of India to take a decision on the management of the cess already collected. Noticing that the benefits and entitlements that have accrued to the construction workers cannot be passed on to them due to the passage of time, with the whereabouts of some of them not known. Accordingly, a decision will have to be taken by the Union of India on the gainful utilization of the cess already collected so that the Welfare Boards are not unjustly enriched – the beneficiaries having unfortunately lost out. [National Campaign Committee for Central Legislation on Construction Labour v. Union of India, WRIT PETITION (CIVIL) NO. 318 OF 2006, decided on 19.03.2018]

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[dddjobs-blog]

Dadra & Nagar Haveli, Walk-In-Interview For Data Entry Operator Date of Interview 12/01/2018

For implementation of welfare schemes introduced under BOCW (RE&CS) Act, 1996, it is proposed to engage 1 Data Entry Operator as under:- Labour Department Job Details:-

Post Name:- Computer Operator

No. of Posts:- 01

Salary Per Month:- 12,000/-

Age Limit:-  Not exceeding 30 years

Educational Qualification:- 1) Degree from a recognized university or equivalent. 2) Experience in Computer…

[loyallogic]

Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

This article is written by Vividh Jain, a student of the Institute of Law, NIRMA University. In this article, the author deals with each and every aspect of a statute named as Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

Introduction

The Building and Other Constructions Workers (Regulation of Employment and Conditions of Service) Act, 1996 hereinafter referred to as the “BOCW Act” is a social welfare statute enacted by the Indian government to provide a safe and healthy working environment for the workers engaged in construction activities. This act watchdog the employment and working conditions of the building and other constructions for workers and it aims to provide welfare measures for the construction workers. The ambit of BOCW Act in India is wide because countries like India where the construction sector rises with a pace, there are many workers engaged in this sector and to safeguard their interest the presence of this legislation is a must. 

Is there a need for the Building and Other Construction Workers Act

In India, more than 80 crore workers, whether skilled or unskilled are engaged in the construction sector. The construction industry is majorly labour-intensive, and most of the workers are unskilled, unorganized and generally work in inhuman and miserable conditions. These construction workers are part of the vulnerable segments of the unorganized sector in India. In order to address these inhumane working conditions, ill-treatment, poor facilities, poor health, and necessary safety measures in the construction sector, the government enacted the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

Giving construction workers their due

Most of the construction workers are educated, unskilled, migrants, socially backward, and have low bargaining power, so the employer usually looted them by giving fewer wages for the work they did. Also, construction workers tend to work with uncertain working hours with an inherent risk of life. Section 45 of BOCW Act, 1996 deals with the responsibility of the employer for the payment of wages and compensation to each construction worker employed by him and if the employer, in any case fails to comply with this section, then he is liable to pay compensation to the workers employed by him in full or the unpaid balance which is due in accordance with Section 8 of the Workmen Compensation Act, 1923. 

Is it mandatory to take registration under BOCW

Section 7 of the BOCW Act, 1996 talks about the registration of an establishment. Before explaining the provision mentioned in this section, we have to know something about establishments. Section 2(1)(j) of BOCW Act, 1996 defines ‘establishments’ as, an establishment belongs to any firm or organization or body of corporations or individuals or associations or government, who employs construction workers for any construction site, is said to be an establishment, but those constructions whose value or cost of such construction is less than 10 Lakhs rupees would not become under this definition. 

Now, Section 7 of the BOCW Act, 1996 deals with the provisions related to the registration of establishments. It says that every employer of the construction work shall make an application to the registering officer for registration of such establishment. The applicant shall make an application for registration:

If the establishment starts operating its function after the commencement of this act, the establishment is required to make an application within a period of sixty days from the date it starts functioning;

If the establishment starts operating its function before the commencement of this act, then the establishment is required to make an application within a period of sixty days from the date of commencement of such act. 

Provided that if a registering officer is convinced with the reason for late registration, he may grant registration for that establishment and if all the forms and documents are prescribed according to terms and conditions, he may issue the certificate of registration. 

Section 8 of the BOCW Act, 1996 deals with the revocation of registration. It says that if the registering officer is satisfied by the reference made to him in this regard or if any employer of an establishment obtained a certificate of registration by misrepresenting the material facts or an establishment has not complied with any provisions mentioned under this legislation, a registering officer after giving a fair opportunity to the employer to represent his case may revoke the registration.

Benefits of having a BOCW card

Different states in India have their welfare schemes for the workers having BOCW cards. Section 13 of the BOCW Act, 1996 talks about identity card issues to the beneficiaries i.e. workers working in a building or at any construction site by the board. Every state offers various facilities or initiates multiple welfare schemes for the workers having BOCW cards or working in the construction sector. Some of the welfare schemes or benefits offered by different State Governments are as follow:

Ministry of Labour and Employment: They enacted schemes on life and disability cover, skill development, health and maternity cover, education, pension, housing, awareness programs. 

Punjab government: Stipend Scheme, LTC Scheme, Funeral Assistance Scheme, Ex-gratia Scheme, Maternity Benefit Scheme, General Surgery Scheme, Denture, Cycle Scheme for Construction Workers as well as for Children, Spectacles & Hearing Aid Scheme, Shagun Scheme, Reimbursement of expenditure for Dangerous Ailments, Tool Kit Scheme, Bhagat Puran Singh Sehat Bima Yojna (BPSSBY), Pension Scheme, Balri Birth Gift Scheme, Skill upgradation & Vocational Education Scheme, Mobile Lab Scheme. 

Assam government: Death benefit, cash award, general pension, disability pension, advance for purchase or construction of house, education institution, marriage assistance, family pension, educational assistance, medical assistance, funeral assistance, health check up, maternity benefit, loan for the purchase of tools, coverage under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) & Pradhan Mantri Suraksha Bima Yojana (PMSBY). 

How is BOCW cess calculated

Section 3 of Building and Other Construction Workers Welfare Cess Act, 1996 mentions that one percent of the construction bill or cost of construction incurred by the employer to build construction is equal to the amount of cess and the same amount is deposited to the welfare board and the fund is utilized for the welfare of the workers or in the welfare schemes for the workers working in the building or a construction site. 

Amount of cess = 1% of the Cost of construction

For example, if the total cost for construction of a building is Rs. 1 Crore then the total amount of cess is one percent of 1 Crore i.e. Rs. 1 Lakh. 

State legislations

As already mentioned in this article, every state offers various facilities or initiates multiple welfare schemes for the workers working in the construction sector. Also Section 4 of the BOCW Act, 1996 empowers the State Government to constitute a State Advisory Committee which is called as ‘State Building and Other Construction Workers’ Advisory Committee to advise the State Government on the matters related to the administration of this act. 

The State Advisory Committee consists of:

a chairperson which has been appointed by the State Government; 

two members of the State Legislative Assembly;

a member who has been nominated by Central Government;

the chief-inspector;

other members not less than seven, but not more than eleven, as nominated by the State Government to represent the building workers, employers, association of engineers or of architects and any of any other interest which the State Government thinks fit.

Its role during the COVID-19 pandemic

There has been a huge impact on the employment of construction workers during the COVID-19 pandemic. Due to the countywide lockdown for this pandemic, the rate of unemployment among construction workers have risen. With an aim to provide financial assistance and relief to construction workers, the Central Government directed all the State Governments to use the unutilized cess welfare fund as these funds provide the social securities to those construction workers who are registered with their respective State Governments. 

According to a report generated by the Ministry of Labour and Employment, till March 2019 there was approx. Rs. 49,625 Crores of cess reserved by the states and Union Territories, but only less than Rs. 20,000 has been utilised. There are wide differences in the amount of cess collected among the states. If we talk about the utilization of funds, as many as 21 states and Union Territories utilize less than 30 percent of the amount of cess they collected for the welfare of construction workers. Only Kerala was the state who utilized around 121 percent of the amount of cess they collected, but states which had the highest cess welfare funds failed to provide welfare to the construction workers. 

Now, what the government of the states and Union Territories can do is to utilise the remaining cess funds for the welfare of construction workers during the pandemic and also by implementing those unutilised funds for the upliftment of corona warriors like doctors, medical staff, police, etc. 

Scope of improvement

In 2013, the Ministry of Labour and Employment presented The Building and Other Construction Workers Related Laws (Amendment) Bill, 2013 before Rajya Sabha to amend the grey areas present in the BOCW Act, 1996. This bill has presented the scope of improvement in this legislation. The salient features of this bill are: 

This bill wants to empower the Central Government to amend Section 2 (1) (j) of the BOCW Act, 1996 by changing the definition of ‘establishments’. The maximum limit of the cost of construction must be introduced instead of the minimum limit of the cost of construction which is Rs. 10 Lakhs.

This bill wants to change Section 12(1) of the BOCW Act, 1996 to enhance the scope of the BOCW Act, 1996 for the registration of workers.

This bill wants to amend Section 24(3) of the BOCW Act, 1996 by empowering the Central Government to notify the percentage of the total expenditure incurred by the State Building and Other Construction Workers Welfare Board on administration meetings.

This bill wants to amend Section 12(3) of the Building and Other Construction Workers’ Welfare Cess Act, 1996 by empowering the State Government to file a complaint in the court of jurisdiction, and take cognizance against the offence. 

Should this enactment be repealed under the new labour law codes

The Indian government is preparing the New Labour Code on Welfare and Social Security which is going to replace around 15 social security or social welfare laws including the BOCW Act, 1996. Many benefits that are accessible under these Acts may not exist under this New Labour Code, and its revocation could be proved as the most disastrous thing for the construction workers as the registrations of workers will expire. 

Also, there is already a large gap between the registered construction workers with the welfare boards and the estimated number of construction workers engaged in the construction sector. If we talk about the data, less than 50% of estimated construction workers are registered with such welfare boards. This New Labour Code will lead to the shutdown of 29 State and 8 Union Territories’ BOCW boards and the construction workers will have to again register themselves with the respective state welfare boards. These newly formed state welfare boards will also take other unorganised sector workers under its ambit and all these workers would be listed in the same place. Also, the cess funds which have been collected for the construction workers would be merged with the social assistance fund.

If the new Labour Code is enacted, it would be beneficial for the construction workers because the scope of welfare measures would be increased in the construction sector, and also it would provide the overall benefit to the labour class engaged in the labour sector of the Republic of India. 

Conclusion 

It is commendable that the Indian government has made social welfare arrangements for the long-neglected construction workers, but there have been some grey areas left in the statute which requires clarification and enforcement until the judiciary has stepped in to resolve the matter. Section 2(1) (i) of the BOCW Act defines ‘employer’ and includes both contractor and owner of the construction site under its ambit. Hence, the contractor and owner start shifting their liability and responsibility to one another. Also, the State Governments have to be accountable for the unutilized cess collected fund and must implement the remaining funds for the welfare of construction workers. 

References 

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[postolo]

‘Symbolic justice’ for construction workers as Supreme Court issues various directions for their welfare

Supreme Court:

“Construction workers do not assist only in building infrastructure, but they also assist in building the nation, in their own small way.”

After it was brought to the notice of the bench of Madan B. Lokur and Deepak Gupta, JJ that under the Building and Other Construction Workers‘ Welfare Cess Act, 1996, more than Rs. 37,400 crores have been collected for the benefit of construction workers, but only about Rs. 9500 crores have been utilized ostensibly for their benefit, the Bench issued various directions after stating:

“No State Government and no Union Territory Administration (UTA) seems willing to fully adhere to and abide by (or is perhaps even capable of fully adhering to and abiding by) two  laws solemnly enacted by Parliament, namely, the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (the BOCW Act) and the Building and Other Construction Workers‘ Welfare Cess Act, 1996 (the Cess Act).”

The Court, hence, asked the Ministry of Labour and Employment, the State Governments and the UTAs to:

put in place and strengthen the registration machinery, both for the registration of establishments as well as registration of construction workers at the earliest.

establish and strengthen the machinery for the collection of cess.

frame one composite Model Scheme for the benefit of construction workers in consultation with all stakeholders including NGOs who are actually working at the grassroots level with construction workers. The scheme should include within it, inter alia, issues and concerns of education, health, social security, old age and disability pension and other benefits that are necessary for living a life of dignity as postulated by the Constitution of India.

conduct a social audit on the implementation of the BOCW Act so that in future there is better and more effective and meaningful implementation of the BOCW Act.

The Court also issued certain general directions for the implementation of the BOCW Act:

Every State Government and UTA shall constitute a State Advisory Committee, if not already constituted.

Every State Government and UTA shall constitute an Expert Committee and frame statutory Rules under Section 62 of the BOCW Act, if such statutory Rules have not already been framed.

The State Governments and UTAs must appoint Registering Officers for registration of establishments and construction workers.

Every State Government and UTA should establish a Welfare Board in terms of Section 18 of the BOCW Act. It must be appreciated that this is not a body that can be created by an executive order. The law requires that the Welfare Board shall be a body corporate having perpetual succession and a common seal.

Every State Government and UTA should establish a Welfare Fund for the benefit of the construction workers, with appropriate rules for utilisation of the funds.

all construction workers should be given identity cards and should be registered in terms of Section 12 of the BOCW Act.

The Ministry of Labour and Employment shall actively consider

making available to the construction workers the benefits of The Maternity Benefit Act, 1961 and The Minimum Wages Act, 1948, The Employees‘ State Insurance Act, 1948, the Employees‘ Provident Funds and Miscellaneous Provisions Act, 1952, as well as (to the extent possible) the Mahatma Gandhi National Rural Employment Guarantee Act, 2005.

The Ministry of Labour and Employment should also consider whether projects of the Government of India in the railways, defence and other establishments are brought within the purview of the BOCW Act.

The Monitoring Committee which has had quite a few meetings so far should pro-actively ensure full compliance of the provisions of the BOCW Act, the Cess Act and the directions issued by this Court.

The Court asked the Union of India to take a decision on the management of the cess already collected. Noticing that the benefits and entitlements that have accrued to the construction workers cannot be passed on to them due to the passage of time, with the whereabouts of some of them not known. Accordingly, a decision will have to be taken by the Union of India on the gainful utilization of the cess already collected so that the Welfare Boards are not unjustly enriched – the beneficiaries having unfortunately lost out. [National Campaign Committee for Central Legislation on Construction Labour v. Union of India, WRIT PETITION (CIVIL) NO. 318 OF 2006, decided on 19.03.2018]

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