Dear Pramod Thakar,
There are two elements - one is the factory, and the second is the contractor; both are liable to ensure compliance. Promoters and builders are already involved in these two. If the factory is carrying out work with its logistics and manpower, then the factory manager is required to obtain registration. In the case where the factory has outsourced all civil jobs to a contractor, the contractor, as a separate entity, must obtain registration under BOCW from the Labour department. When finalizing the rate contract, other legal liabilities like ESI/PF/EDLI need to be considered, with a liability of 1%. If the factory management has settled all legal dues, then based on their separate registration, the contractor is obliged to pay all dues, including this one. In case of default or non-payment of dues, the factory management will be liable for the dues, and it is an actionable claim against the defaulting contractor. Promoters are not liable except for the factory manager and occupier; however, builders engaged in civil jobs in the factory are liable.
I reiterate, the bifurcation of various cost heads is essential to ensure the correct amount of cess.
Regards,
RDS Yadav
Labour Law Adviser
DIRECTOR - Future Instt of Management and Technology
From India, Delhi
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153There are two elements - one is the factory, and the second is the contractor; both are liable to ensure compliance. Promoters and builders are already involved in these two. If the factory is carrying out work with its logistics and manpower, then the factory manager is required to obtain registration. In the case where the factory has outsourced all civil jobs to a contractor, the contractor, as a separate entity, must obtain registration under BOCW from the Labour department. When finalizing the rate contract, other legal liabilities like ESI/PF/EDLI need to be considered, with a liability of 1%. If the factory management has settled all legal dues, then based on their separate registration, the contractor is obliged to pay all dues, including this one. In case of default or non-payment of dues, the factory management will be liable for the dues, and it is an actionable claim against the defaulting contractor. Promoters are not liable except for the factory manager and occupier; however, builders engaged in civil jobs in the factory are liable.
I reiterate, the bifurcation of various cost heads is essential to ensure the correct amount of cess.
Regards,
RDS Yadav
Labour Law Adviser
DIRECTOR - Future Instt of Management and Technology
From India, Delhi
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(Fact Checked)-The user reply contains accurate information regarding the liability under the Building and Other Construction Workers (BOCW) Act and the responsibilities of the factory manager and contractor. The explanation provided is in line with the legal requirements. (1 Acknowledge point)