Labour Law's of Construction Industry

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Wish you a Happy May Day-2015

Without labour nothing is possible in construction industry. Engineer Diary is proud to discuss about the labour law of construction industry in India 

In construction industry, normally the works are executed by labors engaged by contractor(s) / Sub-Contractor(s). The principal employer, contractor(s) as well as the Sub Contractor(s)  , they  are having certain duties and responsibilities under the applicable labor laws to them and liable jointly . Following list of minimum required compliances to be made by principal employer as well as contractor(s) are followed by list of act .

Below a list of some Act applicable to Construction Industry:

1. Workmen’s Compensation Act,1923 (now it is Employee Compensation Act)
2. Payment of Wages Act, 1936
3. Industrial Dispute Act, 1947.
4. Minimum Wages Act, 1948
5. Employees’ State Insurance Act, 1948 ( in certain conditions)
6. Employees’ Provident Fund Act, 1952
7. Maternity Benefit Act, 1961
8. Payment of Bonus Act, 1965
9. Contract Labour (Regulation & Abolition) Act, 1970
10. The Contract Labour (Regulation & Abolition) Act, 1970
11. Equal Remuneration Act. 1976.
12. Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
13. Inter-State Migrant Workers Act, 1979
14. Building and Other Construction Workers Act, 1996
15. Building and Other Construction Workers’ Welfare Cess Act, 1996
16. Child Labour Act, 1996.

By Principal Employer:

1. Obtain Registration Certificate under Contract Labour Act and amend it time to time whenever there is a change; 
2. Obtain Registration Certificate under BOCW Act for its own employees and renew/ amend it from time to time. Also Register Beneficiaries under BOCW Act; 
3. Obtain Registration under Inter-state Migrant Labour Act, if applicable; 
4. Maintain register of contractors;
5. Maintain all the registers and records in respect of own employees (as listed above in list of registers and records to be maintained by Contractors);
6. Maintain minimum rates of wages to own employees;
7. Maintain minimum HRA at 5 % of Basic + DA;
8. Make compliance of EPF, PT, MLW etc. in respect of own employees;
9. Cover own employees sufficiently under Employees Compensation;
10. Ensure that the contractors pay as per minimum rates of wages;
11. Ensure that the contractors make proper compliance of EPF, PT, MLW etc.;
12. Ensure that the contractors have Cover the employees sufficiently under Employees Compensation;
13. Submit annual return under Contract Labour Act and also under BOCW Act;
14. Maintain Health register and certificate of Medical Examinations etc.;
15. Maintain Testing Certificates of lifting appliances and machines etc.;
16. Ensure formation of Safety Committee and its functioning, appointment of Safety officer, Safety and Health written policy- its approval, Safety & Health audit etc.;
17. Ensure that the employees at work wear safety shoes, helmets, safety belts etc. 

By contractor(s) / Sub Contractor (s):

1. Obtain License under Contract Labour Act if employees are above 20 on any day and renew/ amend it from time to time;
2. Obtain Registration Certificate under BOCW Act if employees are above 10 on any day and renew/ amend it from time to time. Also Register Beneficiaries under BOCW Act;
3. Obtain license under Inter-state Migrant Workmen Act, if applicable
4. Maintain the minimum rates of wages as applicable;
5. Maintain min. HRA at 5 % of Basic + DA;
6. Make the compliance of EPF&MP Act;
7. Make the compliance of Profession Tax;
8. Make the compliance of MLW Fund;
9. Cover the employees sufficiently under Employees Compensation.
10. Maintain muster roll, wage register, other registers, records, notices, forms etc. as required under various applicable Acts, abstracts of various applicable Acts.