Dear All,

The employer is having a RC with its existing contractors with proper registration, but the employer has started new construction work where he appointed a new construction contractor. So, my questions are:

1) Should the employer have to register his name in his RC?
2) Is a contract labor license required for a new construction contractor?
3) If the work is for a minimum period, let's say for one to six months, does the employer still have to carry out all legal procedures?
4) Does the construction contractor have to maintain all legal registers?

Please advise.

From India, Pune
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Dear Member,

The answers to your questions are as follows:
1. Yes.
2. If the contractor is engaging 20 or more (some states have 10 or more) workers working for him, please check the coverage aspect for your respective state.
3. Irrespective of the period of work, all statutory compliances need to be met.
4. Yes.

Regards,
Preetam Deshpande

From India, Mumbai
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Dear Rahul ji,

Shri. Preetam Deshpande is absolutely correct. I wish to add three things further for your information and knowledge.

Firstly, if the new construction work is in the same premises, there will be an amendment to the current RC with the enrollment of a new contractor. However, if the new construction work is in different premises, then you have to apply for a fresh RC.

Secondly, the BOCW Act is also applicable to the construction work, under which each establishment is required to obtain an RC, and each construction worker engaged for more than 90 days is required to register as a beneficiary.

Thirdly, the Cess under the BOCW Act is payable at 1% of the project cost.

Thanks and regards.

Keshav Korgaonkar

Shantadurgaent.com, Insurance Advisors, Corporate Advisors, Legal Advice, Wage and salary, Shantadurgaent.com, Labour Compliance Audit, SSI registration, NOC from

From India, Mumbai
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