Dear seniors,
During the stages of the factory under construction, more than 70 construction employees are working to build factories, some of whom are contract laborers. My question is, which labor law legislations are applicable at this stage to the principal employer?
Regards,
Hekarthik
From India, Coimbatore
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46During the stages of the factory under construction, more than 70 construction employees are working to build factories, some of whom are contract laborers. My question is, which labor law legislations are applicable at this stage to the principal employer?
Regards,
Hekarthik
From India, Coimbatore
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So long as the factory building is under construction and until production commences, no labor law will apply to the employer. However, the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, which addresses the health, safety, and welfare of construction workers, and the Building and Other Construction Workers Welfare Cess Act, 1996, which pertains to the payment of a certain amount through a cess based on the value of the constructed building, must be followed.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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The cess is to be paid by the occupier/employer, the person for whom the construction is taking place. It applies to constructions whose cost is above 10 lakhs, and the cess is 1% of the construction cost.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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I do not agree with Mr. Madhu that only the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 is applicable. In addition to that, the Contract Workers (Regulation and Abolition) Act, and moreover, the important Employees' Compensation Act are also applicable.
From India, Kolhapur
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From India, Kolhapur
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I would like to clarify that as an "employer," application of labor laws comes only after the commencement of business. At the same time, the BCW Act itself provides for the application of Workmen's Compensation and other safety, health, and welfare measures to be followed by the employer. Therefore, the matter of ensuring social security is already addressed; I have not completely neglected it.
Madhu.T.K
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From India, Kannur
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Madhu.T.K
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From India, Kannur
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If we look to the query put by Mr. Hekarthik in his post that "when a factory is under construction what are the Labour Law Legislation applicable on stage to "principal of employer". In that context, what laws are applicable and what are not as a Principal Employer were necessary to be explained. I tried to add what was missing in the list.
From India, Kolhapur
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From India, Kolhapur
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To,
Dear Mr. Madhu T.K., Super Moderator,
and
Dear Mr. S. Bhaskar, Super Moderator,
Many greetings of the season. Today, I have read the posts from both of you, and I feel really fortunate to interact with you through this forum. I will always be glad to share my views. Please forgive me if anything I said in my posts was offensive.
With warm regards,
Adv. K. H. Kulkarni.
From India, Kolhapur
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Dear Mr. Madhu T.K., Super Moderator,
and
Dear Mr. S. Bhaskar, Super Moderator,
Many greetings of the season. Today, I have read the posts from both of you, and I feel really fortunate to interact with you through this forum. I will always be glad to share my views. Please forgive me if anything I said in my posts was offensive.
With warm regards,
Adv. K. H. Kulkarni.
From India, Kolhapur
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Hello Mr. Hekarthik,
As a principal employer, one has to be registered under the Contract Labour Act/state rules as well as the Building and Other Construction Workers Act. The Principal Employer and Contractors should be registered under the BOCW Act. All construction workers have to be registered as beneficiaries under the Janshri Insurance Scheme, borne by the Rajya Building & Construction Workers Welfare Board through all Contractors.
Additionally, all labor laws are applicable to contractors and principal employers, such as the Minimum Wages Act, Payment of Wages Act, Professional Tax Act, Labour Welfare Fund Act, and Workmen Compensation Act, among others.
Regards, Dilip Nandanwar
For Vidarbha Industries (Labour Law Auditing, Consulting, Payroll Outsourcing & Management, Manpower/Staffing, and Contracting)
Navi Mumbai
Branch Office - Nagpur
Mail Id- vidarbhaind@ymail.com
Cell # 86555 76111
From India, Mumbai
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As a principal employer, one has to be registered under the Contract Labour Act/state rules as well as the Building and Other Construction Workers Act. The Principal Employer and Contractors should be registered under the BOCW Act. All construction workers have to be registered as beneficiaries under the Janshri Insurance Scheme, borne by the Rajya Building & Construction Workers Welfare Board through all Contractors.
Additionally, all labor laws are applicable to contractors and principal employers, such as the Minimum Wages Act, Payment of Wages Act, Professional Tax Act, Labour Welfare Fund Act, and Workmen Compensation Act, among others.
Regards, Dilip Nandanwar
For Vidarbha Industries (Labour Law Auditing, Consulting, Payroll Outsourcing & Management, Manpower/Staffing, and Contracting)
Navi Mumbai
Branch Office - Nagpur
Mail Id- vidarbhaind@ymail.com
Cell # 86555 76111
From India, Mumbai
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Query to Mr. Madhu
Since you have mentioned that the Cess has to be paid only by the occupier/employer/person for whom the construction is taking place (where the factory has not yet started but is under construction), does it mean that the contractor who employs the workers is not required to be subject to cess applicability? Since he is neither the occupier, employer, nor the person for whom the construction is taking place, or does he still have to, as the contractor is the employer of these workers?
Regards, Babu.
From India, Secunderabad
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Since you have mentioned that the Cess has to be paid only by the occupier/employer/person for whom the construction is taking place (where the factory has not yet started but is under construction), does it mean that the contractor who employs the workers is not required to be subject to cess applicability? Since he is neither the occupier, employer, nor the person for whom the construction is taking place, or does he still have to, as the contractor is the employer of these workers?
Regards, Babu.
From India, Secunderabad
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Forms - Factories Act & Contract Labour Act.xls